Filing for Chapter 7 or Chapter 13 bankruptcy does not guarantee an easy finish. At certain points along the way, the court may dismiss a cause for a variety of reasons. In this guide, clients can find out why and when the court may dismiss a petition, and what may happen when the dismissal occurs.
Fraud
To file for bankruptcy in Washington State, the filer must disclose all of his or her debts, assets, income and financial transactions to the court under the penalty of perjury. If something is hidden from the court or the filer lies on the petition, they can have the case dismissed and they may face fines and possible jail time.
Failure to Follow Requirements
In many cases, bankruptcy petitions are dismissed because filers didn’t follow the requirements for filing or providing documents. Some common reasons include:
* Not completing credit counseling classes within 180 days before filing
* Failing to file the necessary forms in time
* Not paying the filing fee
* Not providing the right documents after filing
* Failure to appear at the creditors’ meeting
* Not making plan payments in a Chapter 13 case
Dismissal Based on Eligibility
If a case doesn’t fit within the parameters for the requested bankruptcy type, the court has little choice but to dismiss the case or allow the client to change to a different bankruptcy type. This commonly happens when a person files Chapter 7, but makes too much to pass the means test. When this occurs, the court may allow the client and his or her Bankruptcy Attorney In Puyallup Wa to change the petition to Chapter 13.
What Happens After a Bankruptcy Case is Dismissed by the Court?
If the court throws out a bankruptcy petition because the filer has failed to comply with the state’s legal requirements, it is usually possible for the client to immediately file again. However, if the dismissal is fraud-based, the court may bar the client from filing again for a certain length of time. For questions on bankruptcy dismissal and eligibility concerns, call a Bankruptcy Attorney In Puyallup Wa to schedule a free consultation.
