If you are struggling to meet your financial obligations and have considered filing for bankruptcy protection, or if you are already in bankruptcy, you need to be careful not to engage in activities that will cause the bankruptcy court to dismiss your petition. As long as the bankruptcy is in effect, your creditors cannot call, write or take legal action against you, but if the court dismisses the petition, you will lose all bankruptcy protection. Here are the reasons that a bankruptcy court will dismiss a petition:
- You have filed a Chapter 7 bankruptcy, but you do not ‘pass’ the Means Test. When Congress revised the bankruptcy laws in 2005 they added a Means Test to determine whether you have the resources to repay creditors over time. If the Means Test says that you can pay something to your creditors, then you cannot receive a Chapter 7 discharge. In this case, you can convert to a Chapter 13 bankruptcy or dismiss your Chapter 7 bankruptcy. You have filed multiple bankruptcies.
- You don’t provide your bankruptcy trustee with the documents that they need to review your case. Typically these documents are pay stubs, recent bank statements and tax returns.
- You didn’t take a pre-bankruptcy credit counseling class. Before filing for bankruptcy most filers must take a one-hour credit counseling course. If you have not taken this.
- You fail to show up at the meeting of creditors-The bankruptcy law requires that you attend the 341 meeting of creditors. If you fail to appear, your petition can be dismissed.
- Your Chapter 13 plan is not feasible—If the bankruptcy court reviews your plan and determines that it is not realistic, your plan can be rejected and your case dismissed.
Contact John Hargrave and Associates
We have provided comprehensive counsel to individuals in and around Barrington, New Jersey, since 1977. To schedule a free initial consultation, contact our office by e-mail or call us at 856-759-6022 (toll free at 866-662-3191).