The Dismissal of a Bankruptcy Proceeding

When Can It Happen and Why?

You’ve lost your job, suffered an injury or illness, or taken a financial beating in a divorce, but you’ve concluded that your best path forward is a personal bankruptcy filing. Once you’ve filed, it’s really just a matter of working through the process, right? Not necessarily—you need to be careful that you don’t do anything that will lead the bankruptcy court to dismiss your petition, as that will put you right back where you were.

What Will Lead the Bankruptcy Court to Dismiss Your Bankruptcy Filing?

There are a number of situations where the bankruptcy court may find sufficient cause to terminate your bankruptcy proceeding:

• You commit what is considered to be bankruptcy fraud—This typically involves nondisclosure or falsification of income, debts or other essential financial information
• You fail to provide any documents or forms requested by the bankruptcy court
• You fail to attend the mandatory meeting with creditors
• You fail the “means test” to qualify for Chapter 7 liquidation—To be eligible to permanently discharge certain debts, you must submit to a “means test,” whereby you demonstrate to the bankruptcy court that you lack the resources to repay creditors through a reorganization. If you have the capability to do that, the bankruptcy court will require that you do.
• You fail to take the required education courses—To qualify for protection in bankruptcy, you must complete both a credit counseling curriculum and a debt management course, and provide the bankruptcy court with a certificate of completion.
• You fail to pay any fees due to the court—Though you can apply for a waiver of the fee, you are generally expected to pay the filing fee for a Chapter 7 or Chapter 13 petition

If your bankruptcy is dismissed, the automatic stay will be lifted and you will be liable for your all debts.

Contact an Experienced Rockwall, TX Bankruptcy Attorney

At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.