What happens after Chapter 13 was converted to Chapter 7 then the Chapter 7 was dismissed?

Question

My husband's ex-wife filed for chapter 13, to save her house and payoff other debt. She ended up losing her house so it was taken out of the Chapter 13. Since the debt that was left was mostly credit card debt, she converted to a Chapter 7 (since she already lost her biggest asset - Her house). She never went to the creditor's meeting - so the Chapter 7 was dismissed by the court.

She is asking my husband - what happens now? (we're conserned because some of the debt could include my husband, during the time they were married)

What does the dismissal from the court mean? We have tried to research this on the internet, but can't find any real answers. Except that it will stay on her credit - the same way as if it was discharged. Please help if you have any answers. Thanks

Answer 1

It means she wasted whatever money she paid to get to the bankrupcy filing, because the court threw out her filing. Basically she is back where she started before she filed, less the house she apparently lost.
So what does that mean in real life, the credit card companies will continue to hound her until sometime well after they write off the debt as a loss. She will owe taxes on this write off amount. Her credit will be damaged for the non payment for at least 5 years, and your husband's credit rating could also be effected. Try to keep your credit clear of your husbands for a while.

Answer 2

It means she has to start over. She still owes all the debt and is no longer protected by the Bankruptcy Code. You and your husband should see an attorney to make sure you do not have consequences from her actions.

Answer 3

All the debts are again her responsibility with no court protection.

Answer 4

It means she is a jerk and has to pay all her creditors now. Tell your husband to start CYA to protect himself incase.