Bankruptcy Dismissal for Non-Payment

Bankruptcy dismissals happen for a variety of reasons.  One of the most common reasons bankruptcy cases are dismissed is for nonpayment of the filing fee or Chapter 13 plan payments. 

Nonpayment of Filing Fee

The filing fee for Chapter 7 cases is $299 and the filing fee for Chapter 13 cases is $274.  If a debtor is unable to pay the filing fee in full at the time he files bankruptcy, he may request permission to pay the filing fee in installments by filing an Application to Pay Filing Fee in Installments.  If the application is granted, the debtor must pay the filing fee in full within 120 days of the date he filed bankruptcy.  For cause, the bankruptcy court may extend the time to pay the filing fee in full to 180 days.  The filing fee must be paid in four installments or less. 

If a debtor does not pay the filing fee in full within 120 days of the date his petition was filed, his case will be dismissed.  However, the debtor may, within 10 days of the dismissal, file a Motion for Reconsideration.  The motion must be accompanied by the balance due on the filing fee.  

If more than 10 days has passed, the debtor may file a Motion to Reopen.  The fee to reopen a Chapter 7 case is $260.  The fee to reopen a Chapter 13 case is $235.  The fee to reopen and the balance due on the filing fee must be paid in full at the time the Motion to Reopen is filed. 

Nonpayment of Chapter 13 Plan Payments

If a Chapter 13 debtor fails to make his plan payments, the bankruptcy trustee will eventually file a Motion to Dismiss.  If the debtor does not bring his plan payments current or negotiate a workout with the trustee, his case will be dismissed. 

If a Chapter 13 debtor becomes unable to make his plan payments as a result of a reduction in income or an increase in expenses, he may file a Motion to Modify Plan Payments.  If a debtor is experiencing a temporary financial crisis, he may also file a Motion to Temporarily Suspend Plan Payments.  Additionally, in some instances, depending on his circumstances, a debtor may even be able to request a hardship discharge. 

Getting Legal Help

If you are in danger of having your bankruptcy case dismissed or if it has already been dismissed as a result of nonpayment of the filing fee or nonpayment of the Chapter 13 plan payments, you should speak with a qualified bankruptcy attorney.  A bankruptcy attorney will explain your options to you and can draft and file the necessary paperwork to vacate the dismissal, reopen the case, or rework your Chapter 13 plan as the case may be.