What Happens After Dismissal?

[Konallc]

Looks like our Chap 7 will be dismissed for reasons I'm not able to disclose. I know all creditors will be notified of the dismissal and statute of limitation no longer applies right?

My question is if we're served with civil suit by creditors, will we still be able to fight it and file a motion to dismiss or are we pretty much SOL?

Another question would be how likely will the creditor be willing to settle if we can come up with the funds at a later point in time?

[BKParalegal]

Creditors don't have a greater vengeance toward dismissed BK filers. You can still try to settle and or fight lawsuits. You do know that you are anonymous on here, so don't disclose for any reason except for that you don't want to but not because you think their is a secret squirrel society that monitors this website... Or is there?

Look, i will admit that the other day buying grapes I taste more than I needed to just cause I was hungry. Quid pro quo Clarice........hold on there is a policeman at the door, i will be right back.

Good luck

[despritfreya]

Was your case dismissed or were you denied a discharge under 727 or 523? My guess is 727. There are differences.

If your case was dismissed, unless the dismissal order included a ban upon ever filing again or limits your ability to refile for some period of time, you can refile in 6 months.

If you were denied a discharge under 727 you can never file a bk to include the debts from this current bk.

If you were denied a discharge of a particular debt under 523 only that debt survives the bk.

Assuming you were denied a discharge under 727, once that notice reaches the creditors they can resume collections. I have no doubt that the one creditor that has been a thorn in your side (resulting in either a 727 or 523 judgment) will go after you to the best of its ability. All others, especially if they are institutional creditors, may work with you.

Des.

[Konallc]

We're being denied discharge 727. My other half took many wrong steps with creditors and when filing therefore throwing up all sorts of red flags. I almost wish we didn't file BK, but I guess it at least bought us several months of time to sort our financial situations out. We've just spent close to $10k filing, fighting AP, going through 2004 Exam all just to have our BK denied. Very disheartening to say the least. Guess we'll just have to try and settle with creditors. The largest single debt we have in our 2nd HELOC on our home which was foreclosed. That was over $180k. I'm hoping they'll agree to settle for a few thousand dollars as that's probably what they would have ended up with had we been able to short sell our home before foreclosure.

What percentage are creditors typically willing to settle for? Collectively we owe close to $700k (gulp!).

I guess all we can do is pray for a financial miracle.