In the U.S., bankruptcy is an option for individual consumers and small businesses alike. Despite the access that all parties have to the bankruptcy code, today’s bankruptcy laws have many precautions to prevent filers from taking advantage of the system. Whether you commit fraudulent behavior purposefully or accidentally during your case doesn’t matter to the court when it comes to a case dismissal. Avoiding difficulties during your case can be as simple as taking advantage of the services a trained bankruptcy lawyer provides. At Behm Law Group, Ltd., we offer expert legal advice and we can be of assistance to you when you file for bankruptcy in Pipestone, MN.
The differences between mistakes and fraud are not always considered in the outcome if the court decides to dismiss your bankruptcy case, but there are still two standing descriptions of how your case can be dismissed: “with prejudice” and “without prejudice.”
Dismissal with Prejudice
If you’ve displayed willfully fraudulent behavior or purposefully disobeyed court orders, your case may be dismissed with prejudice. Your case could also be dismissed and you would be prohibited from filing for bankruptcy relief again for 180 days if you requested a dismissal of your bankruptcy case after a creditor filed for relief from the automatic stay. Learn more about dismissal with prejudice here.
Dismissal without Prejudice
While your case is still dismissed, you land yourself in a slightly better situation if it’s dismissed without prejudice. The biggest difference between dismissal with prejudice versus dismissal without prejudice is that you can file a bankruptcy case again immediately if your previous bankruptcy case was dismissed without prejudice. However, there may be limitations set on the automatic stay when you choose to file for bankruptcy relief again.
You may have your case dismissed without prejudice if you made a mistake on your petition such as a missing or incorrect form, missing pay stubs and other supporting documents, not paying court fees, and not attending a credit counseling course or other mandatory meetings. You can also have your case dismissed without prejudice if you stop making payments on a Chapter 13 repayment plan or if you’re not eligible for any form of bankruptcy.
Because filing for bankruptcy is such a complex legal process, it’s generally in your best interests to make use of the services qualified legal professionals offer. For the help our experienced attorneys provide when you file for bankruptcy in Pipestone, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.