Reasons for Bankruptcy Dismissal
Debts are eliminated if they are discharged in a bankruptcy but in a dismissal debts will not be eliminated. A dismissal of bankruptcy occurs when the case is terminated by a federal judge and there are several reasons why this action may happen.
The most common reasons for bankruptcy dismissal are listed below:
- False information was presented in the bankruptcy petition with intentions to defraud creditors.
- A previous bankruptcy was filed within a certain timeframe making them ineligible to file again.
- All required documentation was not filed with the court by the debtor.
- Credit counseling or financial management courses were not completed by the debtor as a requirement by federal law in order to receive a discharge on qualifying debt.
- The debtor fails to provide documentation requested by the bankruptcy trustee.
- The debtor fails to make payments under the repayment plan if a Chapter 13 bankruptcy was filed. Payments under this plan are required to be made to the Chapter 13 Trustee.
- The bankruptcy judge may decide to dismiss the case or deny the debtor a discharge based on good cause.
When a Debtor Provides False Information
If a debtor chooses not to obey the law of the court or provides false information while under oath, it's likely the bankruptcy case will be dismissed. A case may also be dismissed if a debtor withholds non-exempt property that should be turned over to the Trustee if it is requested. If your case gets dismissed you may have an opportunity to file again in the future but it depends on the circumstances. Questions or concerns should be reviewed with a qualified bankruptcy attorney.
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