Under what conditions can a bankruptcy be dismissed?
For many individuals, filing bankruptcy can provide debt relief and the chance to make a fresh start. By failing to comply with state and federal bankruptcy laws and following all the procedures, however, a bankruptcy can be dismissed
How do I qualify for bankruptcy?
In order to file a Chapter 7 bankruptcy, you must demonstrate that your income for the 6 month period preceding the filing is lower than the median income in your state. If you earn more than that, you must past a means test and show that you do not have enough disposable income to pay your debts – this test relies on national and local expense standards and some of your actual expenses. If you do not meet the criteria, the bankruptcy may be dismissed or converted to a Chapter 13 filing.
Bankruptcy Dismissals at a Glance
Before you file for bankruptcy, you must attend credit counseling with an agency approved by a bankruptcy trustee. Once the course is completed, you will receive a certificate and you can file in a local bankruptcy court. If you do not complete the course before you file, the bankruptcy will be dismissed.
If your commit bankruptcy fraud, the court or the trustee will dismiss your case. Not only will you lose your discharge, you may also face criminal charges. It is crucial that your financial information, such as your income, assets and liabilities, is accurate.
Filing bankruptcy is not free – there are filing fees that must be paid in order for the court to administer your case. If you cannot pay the fees because you do not earn enough money, the court may grant you a waiver. If your application for a waiver is denied and you do not pay the fees, your case will be dismissed.
Filing Forms/Creditor Meeting
Filing for bankruptcy involves completing and submitting a variety of forms that disclose your financial affairs. By failing to file all the required forms, the court will dismiss your case. Similarly, after your initial filing, you must also provide the trustee with tax returns, pay stubs and other documents that support the financial information. These documents must be filed at least one week prior to the 341 meeting of creditors. If you fail to attend this mandatory meeting, the trustee will most likely dismiss your case.
Failing to Make Chapter 13 Payments
A Chapter 13 bankruptcy, also referred to a s a reorganization bankruptcy, allows you to keep your property provided that you pay back some of your debts over a 3 to 5 year period. If you fail to make the scheduled payments, the bankruptcy will be dismissed.
In the final analysis, filing for bankruptcy is a serious consideration, that requires you to closely follow a number of laws and procedures. Failing to do so will lead to your bankruptcy being dismissed by the court or the trustee. For this reason it is essential to engage the services of an experienced bankruptcy attorney.