Actions that Can Result in Bankruptcy Dismissal
A bankruptcy dismissal is the court’s denial of a bankruptcy filing and the court throws out your case. Once dismissed, depending on the reason for the dismissal, you might have to wait 180 days (six months) from the date of dismissal before you can file bankruptcy again. Bankruptcy dismissal is something that anyone filing bankruptcy wants to avoid.
Here is a list of actions that can lead to bankruptcy dismissal:
- Failing to submit all necessary documents and information.
- Withholding information or filing false information with the intention of defrauding others.
- Filing bankruptcy too soon after filing a previous Chapter 7 (not waiting eight years) or a previous Chapter 13 (not waiting two years).
- Missing Chapter 13 payments and therefore not following through with the repayment plan.
- According to the United States Trustee Program, debtors who do not obtain a credit counseling certificate from an approved provider in the district where they are filing bankruptcy may be subject to a dismissal. This could also apply to debtors receiving credit counseling in one district and then moving to another district, where they file bankruptcy within the 180-day period. Unless the credit counseling provider is approved for both districts, the certificate is not portable.
- Not completing the required credit counseling.
- Failure to comply with the trustee's request for documents.
- A bankruptcy judge's decision that credible reasons exist to dismiss the case.
Consulting with a bankruptcy attorney can help you avoid bankruptcy case dismissal. Also, if you tried filing bankruptcy on your own (not a good idea) and the court dismissed your case, seek legal help.