What Are the Sanctions If My Colorado Bankruptcy Is Not Discharged?
A bankruptcy discharge essentially eliminates your debts. If you file for bankruptcy in the Colorado Bankruptcy Court and do not receive a discharge, it means that something was wrong with your case. Either you did not qualify to file bankruptcy, did not follow procedure or committed bankruptcy fraud. Regardless of the reason, the court will dismiss your case if you do not receive a discharge. Dismissal of a Colorado bankruptcy case carries both short-term and long-term ramifications.
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Protection From Creditors Lifted
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The day you file your bankruptcy petition in Colorado all of your creditors must stop contacting you. A court injunction known as the "automatic stay" exists as soon as you file bankruptcy and protects you from any collection activities of your creditors. This includes lawsuits, wage garnishments, letters and phone calls. If the Colorado Bankruptcy Court dismisses your case, it also dismisses the relief provided by the automatic stay. Your creditors are then free to pursue you for payment of your debts.
Credit Report Damaged
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When you file for bankruptcy in Colorado, it appears on your credit report. If the court later dismisses your case, the damage has already been done. Once the credit reporting companies note you filed for bankruptcy, it does not matter whether your case results in discharge or dismissal. The very act of filing for bankruptcy will remain for 10 years in a Chapter 7 case and for seven years for a Chapter 13 case.
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Petition Still Public Record
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Your Colorado bankruptcy petition is a matter of public record. Anyone who wants to look at your case can find it if he knows how to access public court records. Your petition shows not only that you filed bankruptcy but also the intimate details of your financial life, from how much money you make to the possessions you own to the money you owe creditors. Whether you voluntarily withdraw your petition or the court dismisses your case, your original petition remains a public record.
Refiling Issues
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If the court dismisses your case and you want to refile, you must pay a new filing fee of either $299 for Chapter 7 or $274 for Chapter 13. Additionally, you will have to pay new attorney fees if you retain a lawyer. In some cases, you may have to wait before you can file again. If the Colorado court dismisses your bankruptcy due to your unwillingness to follow court procedures, you have to wait 180 days before you file again. In extreme cases, the court may bar you from ever filing again, as in the case of fraud.
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References
- Bankruptcy Law Network: What Happens if My Chapter 7 Bankruptcy Case Is Dismissed?; Kevin Gipson
- Bankrate: Bankruptcy Dismissal; Don Taylor; January 20, 2005
- Bankruptcy Law Network: When Can I File Bankruptcy Again?
- U.S. Courts: Bankruptcy Filing Fees
- Cornell University Law School: U.S. Code--Section 109: Who May Be a Debtor
- Moran Law: Automatic Stay
