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