Generally speaking when a debtor files for bankruptcy, the process goes smoothly. However, there are a few things that a debtor can do that could end in the dismissal of their bankruptcy by the bankruptcy trustee:
- A debtor’s bankruptcy case may be dismissed if the debtor fails to provide the bankruptcy trustee with tax returns at least seven days prior to the meeting of the creditors.
- A debtor’s bankruptcy case may be dismissed if the debtor fails to provide to the bankruptcy court, his/her paystubs from the past 60 days.
- A debtor’s bankruptcy case may be dismissed if the debtor is found engaging in delaying tactics with the aim of manipulating the system and preventing creditors from being repaid.
- A debtor’s Chapter 7 or Chapter 13 bankruptcy case may be dismissed if the debtor fails to pay court-mandated fees and costs.
- In the case of a Chapter 13 bankruptcy case, the bankruptcy can be dismissed if the debtor fails to make payments to the bankruptcy trustee one the repayment plan has been implemented.
- A debtor’s Chapter 13 bankruptcy case may be dismissed of the debtor fails to file a repayment plan in a timely manner.
The good news is that if a debtor’s bankruptcy is dismissed they will be able to refile at a later date. However, once the bankruptcy case is dismissed the automatic stay is lifted and the creditors will have the power to pursue the debtor for payment. This means that in the time it takes to refile the bankruptcy, the debtor could face lawsuits, judgments and even asset seizures.