What happens when a Chapter 11 bankruptcy filing is dismissed?

When a Chapter 11 bankruptcy filing is dismissed in Virginia, the debtor may not be able to start the process anew without permission from the court. Depending on the reason for the dismissal, the debtor may be barred from filing again for up to 180 days. When a Chapter 11 bankruptcy filing is dismissed, the debtor will be released from all debts listed on the original filing. However, any assets that were considered part of the bankruptcy estate can be liquidated and the proceeds used to pay off creditors. The court will also assign a trustee who will oversee the liquidation and distribution of assets. When a Chapter 11 bankruptcy filing is dismissed, the court may also issue a protective order against the debtor, which will prevent them from taking any further actions to collect debts. This order also prevents creditors from bringing any new actions against the debtor. The court may also issue a post-dismissal order to protect interested parties, such as creditors and secured creditors. This order will prevent creditors from taking further steps to collect debts or assets that were part of the bankruptcy estate. Once a Chapter 11 bankruptcy filing is dismissed, the debtor will still be responsible for repaying any remaining debts that were not listed in the original filing. This includes any debts that were not discharged due to fraud or abuse. The court may also order the debtor to pay attorney’s fees and other costs.

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