Should one request a bankruptcy dismissal or not

A person may come across certain situations in his life making him unable to pay off his outstanding debt. In such situations, filing a bankruptcy under Chapter 7 or Chapter 13 might help a person trim down his debts to a certain limit or get extended time to make the payments. When a person files bankruptcy, the petition might shield him from the most adverse effects of unpaid sums. However, if a person fails on bankruptcy, he may have to dismiss the filed bankruptcy petition. Two types of bankruptcy dismissal are discussed below:

Voluntary bankruptcy dismissal

Chapter 13 bankruptcy Florida, also known as wage earner's plan is preferable for the debtors who have a regular source of income with the help of which they can pay off the outstanding debts. In this case, the debtor remains the owner of his possessions while paying off his debt on monthly or biweekly basis. Those who have filed bankruptcy under this plan can voluntarily make a request for dismissal. In conditions when the court determines that the debts cannot be discharged through bankruptcy, the debtor has to file a dismissal. Otherwise, if he feels like he has secured sufficient amount of money to repay his debts without the need of bankruptcy, he can request for a dismissal. Under Chapter 7 bankruptcy, there are fewer chances of approval of bankruptcy dismissal as it requires approval from the court.  

Involuntary bankruptcy dismissal

An involuntary bankruptcy dismissal is generally a court's decision. Bankruptcy suggests an easier path for individuals to recompense for the unpaid amount to their creditors. In case, the debtor is still not able to complete the course, it might lead to forcible dismissal of the case by the court. If the person fails to make the payments as per the proposed plan and does not make a voluntary dismissal, an involuntary dismissal may result. Apart from these basic reasons, there may be other reasons as well depending upon the state and federal laws.

If a bankruptcy dismissal is intentional, the debtor should make sure that he will be able to credit all the outstanding debt without any delay or negotiations required. However, in case of involuntary dismissal, it may invite even tougher conditions for the debtor. He will then have to face his creditors himself without any external support from the law. It completely goes into the hands of the creditors for how they will want the debtor to recompense for the debts. Also the debtor will not be able to file bankruptcy again for at least 180 days if he has not completed his previous proceeding by receiving a discharge. Also the creditors will be free to make collection attempts as the debtor is no more protected after the dismissal.

If you have genuine concerns with your finances, you must consult an attorney to guide you in the best way to file bankruptcy and whether or not to file a dismissal petition.