Choosing The Right Course of Action

About four years ago, I could tell that things were turning south with my business. Cash flow was tight, and customers simply weren't coming back to shop some more. I realized that if I was going to keep my house, I would need to do something to resolve my finances. Although it was scary, I decided to meet with a bankruptcy attorney. After I explained my situation, he helped me to understand the process and how to tell if it was a good idea or not. When I decided to do it, things started changing for me right away. This blog breaks down bankruptcy in layman's terms, so that you can decide whether or not it is right for you.

The Difference Between A Bankruptcy Case Dismissed With Prejudice Vs. Without Prejudice


The bankruptcy process can be a complicated and intimidating event, yet it can be a great solution for debt issues. If you recently filed and just found out the trustee dismissed your case, it might be wise to talk to your lawyer to find out what went wrong. Trustees can dismiss cases with prejudice or without prejudice, and you should understand the differences with these.

Dismissals without prejudice

If your case was dismissed without prejudice, it means that you likely made some type of mistake in your paperwork. You may have failed to submit a required form, or you might have forgotten to include certain debts on your list. There is also a chance the trustee dismissed your case due to an absence at a hearing you were supposed to attend. Trustees can dismiss cases whenever something is not just right with a case; however, the problem typically is something very minor.

When cases are dismissed without prejudice, individuals are typically allowed to refile their cases immediately after the cases have been dismissed.

Dismissals with prejudice

If your case was dismissed with prejudice, it is most likely due to some type of fraudulent activity. A case dismissed with prejudice is always much worse than a case dismissed without. If your case was dismissed with prejudice, you will not have the right to file another bankruptcy case right away. You will have to wait a certain length of time before you can do this again.

Cases dismissed with prejudice usually involves fraud of some kind. For example, if you advertently disobey a bankruptcy law and the trustee finds out, he or she will dismiss your case with prejudice. In addition, if you lie on your forms, try to hide money or assets, or offer false information, the trustee will dismiss your case with prejudice as soon as he or she discovers the fraud.

How to avoid getting your case dismissed

There are ways to avoid getting your case dismissed, and the main step this will require is hiring a good bankruptcy lawyer. The other step you must take is making sure you are completely honest with all the information you provide to the court.

If you would like to find out if you should file bankruptcy and what it would entail, you will need to meet with an experienced bankruptcy lawyer like Jeffrey S. Arnold, Attorney at Law, P.C. for more information and assistance. 


27 June 2017