Converted, Closed, and Dismissed Bankruptcy Cases: What is the Difference?
When you are considering personal bankruptcy and doing preliminary research into the process, you are likely to come across a series of terms related to the end of a bankruptcy case. These terms are all distinct from one another, but their meanings likely are not obvious to a consumer who is seeking to learn more about personal bankruptcy and how different types of bankruptcy processes work. While there is a wide range of consumer bankruptcy terms that can be complex and may require an explanation from a dedicated bankruptcy lawyer, our firm wants to focus on three terms that are commonly used to describe the end of a bankruptcy case -- closure, dismissal, and conversion. What does it mean for a bankruptcy case to be closed, and how does that process differ from a bankruptcy dismissal or conversion? Our Oak Park bankruptcy attorneys can provide you with more information.
Closing a Bankruptcy Case
When a bankruptcy case is closed, or when there is a reference to the closing of a bankruptcy case, this simply means that all of the actions in the bankruptcy case have been completed according to the requirements of U.S. bankruptcy law, and the bankruptcy case is now complete. Once a case is closed, the debtor has received a discharge, and the trustee has completed all required duties based on the type of bankruptcy filing. It is important to know, however, that a bankruptcy case can be closed without a discharge being entered in certain cases. In situations where a debtor has not completed the requirements for credit counseling, the debtor will typically need to reopen the bankruptcy case to receive a discharge (after which point the case can again be closed).
It is also important to know that adversary proceedings (i.e., lawsuits) are not necessarily over once a bankruptcy case has been closed. If you have questions or concerns about adversary proceedings linked to a bankruptcy case, you should seek advice from a lawyer.
Dismissing a Bankruptcy Case
When a bankruptcy case is dismissed, no discharge is entered, and the court stops all further actions in the case. A dismissal means that the bankruptcy process will not be completed, and the debtor will not receive a discharge. Dismissals can happen when the debtor requests a voluntary dismissal or when a trustee or a creditor seeks an involuntary dismissal. Trustees and creditors can seek involuntary dismissals for different reasons, including concerns about the debtor’s bad faith actions in the bankruptcy case.
Converting a Bankruptcy Case
When a bankruptcy case is converted, the case switches from one chapter of bankruptcy to a different one. For example, cases are commonly converted for individual debtors from Chapter 13 to Chapter 7, or vice versa. When a bankruptcy case is converted, the original bankruptcy case effectively ends, and a new bankruptcy case effectively begins. Debtors can request a conversion, or a trustee or creditor may seek a conversion.
Contact a Bankruptcy Lawyer in Oak Park
Do you have questions about closing, converting, or dismissing a bankruptcy case? One of our Oak Park bankruptcy lawyers can assist you. Contact the Emerson Law Firm today.
See Related Blog Posts:
Will the Automatic Stay Permanently Stop Debt Collectors?
Do I Need to Worry About Old Debt?
Closing a Bankruptcy Case
When a bankruptcy case is closed, or when there is a reference to the closing of a bankruptcy case, this simply means that all of the actions in the bankruptcy case have been completed according to the requirements of U.S. bankruptcy law, and the bankruptcy case is now complete. Once a case is closed, the debtor has received a discharge, and the trustee has completed all required duties based on the type of bankruptcy filing. It is important to know, however, that a bankruptcy case can be closed without a discharge being entered in certain cases. In situations where a debtor has not completed the requirements for credit counseling, the debtor will typically need to reopen the bankruptcy case to receive a discharge (after which point the case can again be closed).
It is also important to know that adversary proceedings (i.e., lawsuits) are not necessarily over once a bankruptcy case has been closed. If you have questions or concerns about adversary proceedings linked to a bankruptcy case, you should seek advice from a lawyer.
Dismissing a Bankruptcy Case
When a bankruptcy case is dismissed, no discharge is entered, and the court stops all further actions in the case. A dismissal means that the bankruptcy process will not be completed, and the debtor will not receive a discharge. Dismissals can happen when the debtor requests a voluntary dismissal or when a trustee or a creditor seeks an involuntary dismissal. Trustees and creditors can seek involuntary dismissals for different reasons, including concerns about the debtor’s bad faith actions in the bankruptcy case.
Converting a Bankruptcy Case
When a bankruptcy case is converted, the case switches from one chapter of bankruptcy to a different one. For example, cases are commonly converted for individual debtors from Chapter 13 to Chapter 7, or vice versa. When a bankruptcy case is converted, the original bankruptcy case effectively ends, and a new bankruptcy case effectively begins. Debtors can request a conversion, or a trustee or creditor may seek a conversion.
Contact a Bankruptcy Lawyer in Oak Park
Do you have questions about closing, converting, or dismissing a bankruptcy case? One of our Oak Park bankruptcy lawyers can assist you. Contact the Emerson Law Firm today.
See Related Blog Posts:
Will the Automatic Stay Permanently Stop Debt Collectors?
Do I Need to Worry About Old Debt?
Comments
Post a Comment