Can the Court Dismiss My Bankruptcy Case Without Discharging My Debt?

When someone in Oak Park decides to file for consumer bankruptcy, that debtor usually will make the decision to seek bankruptcy protection under the assumption that she or he will get a discharge of all eligible debts once the bankruptcy case is complete. However, there are many reasons that the bankruptcy court can dismiss a case. In some instance, a dismissal in bankruptcy occurs because of an honest mistake. At the same time, a dismissal in bankruptcy can also happen when the debtor intentionally engages in fraudulent behavior.

If you are considering bankruptcy, you may be wondering: Can the court dismiss my bankruptcy case without discharging my debt? To ensure that you remain eligible to have your debt discharged, it is extremely important to work with an experienced Oak Park bankruptcy attorney on your case. In the meantime, we will provide you with some examples of common reasons that a Chapter 7 bankruptcy or Chapter 13 bankruptcy case can be dismissed without a discharge.

1. You Filed for Chapter 7 Bankruptcy but Cannot Pass the Means Test
When you file for Chapter 7 bankruptcy, you must be able to pass the “means test” in order to be eligible to have your debt discharged. The means test takes you income over the six months prior to the date you filed for bankruptcy and considers whether your income is sufficiently low compared to your living expenses that a liquidation bankruptcy makes sense. If you end up filing for Chapter 7 bankruptcy but fail the means test, the bankruptcy court can dismiss your case. In most cases, however, the bankruptcy court will give the debtor the option to convert the case to a Chapter 13 bankruptcy filing.

2. You Failed to File Necessary Documents
Bankruptcy law is extremely complicated. Whether you file for Chapter 7 or Chapter 13 bankruptcy, you will be required to fill out and file a number of different required forms and accompanying documentation. You must file a bankruptcy petition and various schedules, and you will need to provide documents that support the information contained in the forms, such as your tax returns, pay stubs, and other necessary information. If you fail to properly fill out or file any of the required forms, or if you fail to include the necessary supporting documentation, your bankruptcy case can be dismissed.

3. You Failed to Pay Court Fees
Any debtor who files for personal bankruptcy must pay bankruptcy fees. Failing to file those fees can result in a case getting dismissed.

4. You Failed to Attend a Required Meeting or Course
Consumer bankruptcy requires the debtor to attend the meeting of creditors, as well as to attend certain education courses. Failure to show up at any of these can result in your bankruptcy case being dismissed.

5. You Committed Bankruptcy Fraud
When you file a petition for bankruptcy and provide detailed information about your financial situation and your assets, you are required to tell the truth. Lying on bankruptcy forms—e.g., failing to disclose assets or providing incorrect information about income—can constitute fraud. In addition to your bankruptcy case getting dismissed, you can face additional criminal consequences.

Contact an Oak Park Bankruptcy Attorney
If you have questions about filing for consumer bankruptcy, an experienced Oak Park bankruptcy lawyer can assist you. Contact the Emerson Law Firm to learn more.



See Related Blog Posts:

Consumer Debt Reaches New High

Is it Best to Prevent Elderly Bankruptcy?

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