Post-Bankruptcy—The Relationship Continues?
Effect of Bankruptcy Dismissal
At whatever stage it occurs, a bankruptcy dismissal puts the parties back as they were. The automatic stay is immediately lifted, meaning collection action can be taken again. All debts that were due before are due again, less any payments made.
In the event of a dismissal, your relationship with the debtor continues as it was before. You are entitled to add on interest and late fees that accrued during the bankruptcy. You may reinstitute or continue any lawsuits that were pending against the debtor.
There are rare cases when a bankruptcy case is dismissed and then reopened. There are grounds where a judge will allow a case to be reopened, such as illness, ...
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