Common Reasons for Bankruptcy Dismissal

Why bankruptcy cases get dismissed

Bankruptcy cases are dismissed for specific, identifiable reasons. Understanding these helps you prevent dismissal in a current or future case.

Chapter 7 dismissal reasons

• Means test failure -- Under 11 U.S.C. Section 707(b), if your income exceeds the state median and you fail the means test, the U.S. Trustee or the court can move to dismiss for abuse
• Failure to file required documents -- Tax returns, pay stubs, credit counseling certificate, and schedules must be filed within strict deadlines
• Failure to attend the 341 meeting -- Missing the meeting of creditors without good cause can result in dismissal
• Bad faith filing -- Filing primarily to delay creditors with no genuine intent to obtain relief
• Debtor's request -- You can voluntarily dismiss your Chapter 7 case (with some limitations)

Chapter 13 dismissal reasons

• Failure to make plan payments -- The most common reason. Missing payments triggers a motion to dismiss
• Failure to file a confirmable plan -- If the court cannot confirm your plan, the case may be dismissed
• Failure to provide required documents -- Tax returns, pay stubs, and other documents are required
• Failure to attend the 341 meeting
• Failure to complete credit counseling
• Changed circumstances -- Income changes that make the plan infeasible