Getting the news that your bankruptcy case was dismissed with prejudice can be nerve-racking. While you may not be entirely sure of its repercussions, you may understand that you are worse off than a debtor who was ordered a routine dismissal. Before the effects can set in, you may want to do everything in your power to appeal or reverse the court’s decision. For this, please continue reading to learn the aftermath of a bankruptcy dismissal with prejudice and how an experienced Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you fix this before it is too late.
What are the consequences of a bankruptcy dismissal with prejudice?
First of all, if the Kentucky bankruptcy court dismisses your bankruptcy case with prejudice, it may be because there is evidence supporting your abuse of the bankruptcy system or misconduct in your court proceedings. For example, if you were caught hiding assets from your bankruptcy forms, or failing to provide documents with accurate information after being given multiple chances to address your previous errors. With this ruling, you may expect to face the following consequences:
- Your automatic stay may be terminated immediately, and creditors may resume all collection efforts.
- Your once-eligible dischargeable debts may be reinstated, and you may remain financially responsible for them.
- You may be barred from refiling for bankruptcy for a specific period or from discharging the same debts in your future bankruptcy.
- You may be left with your dismissed bankruptcy case on your credit report for seven to 10 years, affecting your future credit opportunities.
Even though a dismissal with prejudice is a civil penalty by the Kentucky bankruptcy court, your actions that led to this ruling may be addressed by the state’s criminal court system. In a worst-case scenario, you may be convicted of bankruptcy fraud, which may result in up to five years in federal prison and substantial fines.
Can I appeal or reverse a bankruptcy dismissal with prejudice?
If you believe a grave misunderstanding led to your bankruptcy case being dismissed with prejudice, you may file an appeal of the Kentucky bankruptcy court’s order with a higher court. But first, you will likely need to file a Notice of Appeal with the bankruptcy court within 14 days of its issued dismissal order. At this time, you may attempt to file a motion with the bankruptcy court to reconsider its decision.
Nonetheless, with your appeal, you must demonstrate to the higher court that you have valid grounds for this motion. This is, you must gather and file additional paperwork that proves that the bankruptcy court based its decision on a misrepresentation of facts, a clear factual error, an incorrect application of law, or an honest mistake.
If this is what you are currently up against, do not try to put up a fight without the legal assistance of a skilled Louisville, Kentucky consumer bankruptcy lawyer from Schwartz Bankruptcy Law Center. We urge you to retain our services as soon as possible.
