What Happens If My Bankruptcy Case Is Not Dismissed?

In some limited instances, a debtor might seek a dismissal of her bankruptcy case. While the reasons vary, gaining approval of the bankruptcy trustee or the court before abandoning an ongoing case is required. There are occasions in which a requested dismissal is denied by the bankruptcy trustee or the court.

Considerations

Creditors have the right to object to such a bankruptcy dismissal. If a creditor can demonstrate an improper purpose on the part of the debtor in seeking a dismissal, the request for such action will be denied.

Effects

The effects of a denial of a requested dismissal depend on whether the debtor has filed under Chapter 7 or 13. In either event, a creditor will not be able to pursue a debtor outside of the case itself.

Chapter 7 Bankruptcy

After a requested dismissal is denied in a Chapter 7 bankruptcy, the court will proceed to discharging the debts owed to creditors.

Chapter 13 Bankruptcy

If a requested dismissal of a Chapter 13 bankruptcy is denied, the debtor legally is obliged to make monthly payments on the Chapter 13 plan.

Professional Assistance

If a requested dismissal of a bankruptcy case is opposed, a debtor is very wise to seek the assistance of an experienced attorney to assist in combating this determination.

References

• Cornell Law School
• U.S. Bankruptcy Code
• U.S. Bankruptcy Courts, Local Rules

Resources

• American Bar Association

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