Reasons a Chapter 13 Bankruptcy Can Be Dismissed

If a Chapter 13 case gets dismissed, the automatic stay is terminated and the debtor returns to his pre-bankruptcy status with all of his creditors. This means that his creditors may legally pursue all collection efforts against him, including foreclosure, repossession, lawsuits, and wage garnishments.

Why Chapter 13 Cases Get Dismissed?

Failure to Properly Complete and/or File Bankruptcy Petition and Schedules – Chapter 13 cases are frequently dismissed because the debtor fails to properly complete and file the bankruptcy petition and schedules. In cases where the debtor files the bankruptcy petition without the schedules and other required documentation, he will be given an additional 15 days to file those documents otherwise his case will be dismissed.
Failure to File a Chapter 13 Plan – Within 15 days of filing bankruptcy, a debtor must file a Chapter 13 plan and serve it on the bankruptcy trustee and all of his creditors. Failure to do so will result in dismissal of his case.
Failure to Attend the Meeting of Creditors – Attendance by the debtor at the Meeting of Creditors is mandatory. If a debtor fails to appear, the trustee will usually reset the meeting to a future date. If the debtor fails to appear on the reset date, his case will be dismissed.
Failure to Make Pre-confirmation Chapter 13 Plan Payments – A debtor must begin making his Chapter 13 plan payments immediately and must have paid all plan payments which became due up to the date of the confirmation hearing. In most cases, the trustee will notify the debtor and his attorney that there is a “funding” objection. If the debtor does not cured the funding objection on or before the confirmation hearing, his case will be dismissed.
Failure to Make Post-confirmation Chapter 13 Plan Payments – If a debtor fails to make all post-confirmation plan payments, his case will be dismissed. In such situations, the trustee will file a Motion to Dismiss which sets forth the reasons why the case should be dismissed. The debtor may be able to negotiate a resolution with the trustee, including modifying his Chapter 13 plan to account for a decrease in income or an increase in expenses.
Failure to Cure Objections to Confirmation – The trustee will notify the debtor and the debtor’s bankruptcy attorney of all objections to confirmation. If the debtor does not cure the objections prior to the confirmation hearing, his case will be dismissed.

Getting Legal Help

Dismissal of a Chapter 13 case can have disastrous consequences for a debtor. The best way to ensure that a bankruptcy case is not dismissed is to be represented by a qualified bankruptcy attorney. An experienced bankruptcy attorney has the knowledge and experience necessary to ensure that all paperwork is completed properly and that all deadlines and rules are adhered to.

Think Bankruptcy Might Be for You?