How to Appeal Bankruptcy Cases

Don't delay in filing a bankruptcy appeal.

If you filed a petition for bankruptcy and received a letter from the bankruptcy court stating your case has been dismissed, do not lose hope. You have the right to appeal the dismissal but must do so within 10 days of receiving notice of the dismissal. A dismissal is the early closure of bankruptcy case before the debtor is discharged from his debts. Dismissals can occur for a number of reasons, but most commonly there is a problem with the paperwork.

Instructions

1. Read the dismissal letter from the bankruptcy court closely to understand why your case was dismissed. A Chapter 7 bankruptcy can be dismissed involuntarily when a debtor fails to pay the fees and costs associated with bankruptcy, causes an unnecessary delay in the case or fails to file necessary paperwork or supply required information. A Chapter 7 case may also be dismissed if the debtor has a high enough income to afford a repayment plan under a Chapter 13 bankruptcy. Similarly, Chapter 13 bankruptcies can only be dismissed when the debtor does not complete the repayment plan or fails to make a payment. Bankruptcy cases can also be dismissed for fraud or when the filings were done in bad faith.

2. File the Notice of Appeal with the bankruptcy court within 10 days and pay the appropriate filing fee. As of November 2010, the filing fee for a bankruptcy appeal was $225. In your appeal, be sure to include the bankruptcy case number, your personal contact information and the contact information for all your creditors, which should be listed in the original bankruptcy petitions. Copies of the Notice of Appeal forms are available from the clerk at the bankruptcy courthouse.

3. File a Designation of the Record and Statement of Issues with the bankruptcy court within 10 days of filing the Notice of Appeal. In the Statement of Issues, provide a detailed explanation of how you corrected the errors that caused the initial dismissal. For example, if the bankruptcy was dismissed for failing to provide certain information, explicitly state that information in the statement. Copies of the Designation of the Record and Statement of Issues forms are available from the clerk at the bankruptcy courthouse.

4. File a brief (a legal argument) with the bankruptcy court clerk within 14 days after the appeal is filed. The Federal Rules of Bankruptcy require that the brief be less than 50 pages. The brief should closely detail why the appeal should be granted, providing any new, supportive information as necessary.

5. Wait for the bankruptcy court to make a decision on the appeal.

Tips & Warnings

• Appealing bankruptcy is a very complicated matter. You should solicit the help of an attorney who has experience appealing bankruptcy cases.

References

• Federal Judicial Center: How Cases Move Through Federal Courts
• U.S. Federal Rules of Bankruptcy Procedure