When you file for bankruptcy, you must properly complete your bankruptcy papers, adhere to all local and federal rules, and appear in all mandatory hearings. Failure to comply at any point of the legal process can result in the bankruptcy court dismissing your case.
When your bankruptcy case is dismissed before you receive a discharge, you will lose the automatic-stay protection that prohibits creditors from collecting debts. Additionally, you will ultimately be liable for your debts.
The following are the five of the most common reasons the court might dismiss your bankruptcy case:
- Failure to pay court filing fees – In order to file for bankruptcy, you must pay the court a filing fee in order to administer your case. If you are filing for Chapter 7 bankruptcy and you have little or no income, you may qualify for a filing fee waiver. The court will consider your income and expenses to determine whether to grant or deny your waiver. Unless you are granted a waiver, failure to pay the necessary filing fees will lead to the court dismissing your case.
- Failure to file the necessary forms and supporting documentation – Not only are you required to file several bankruptcy forms (e.g., the petition, schedules, etc.), but you must also submit supporting documents (e.g., pay stubs, tax returns, etc.) to the trustee. If you fail to file all required forms or submit any supporting documentation, the bankruptcy court will dismiss your case.
- Failure to complete the mandatory education classes – You are required to complete a credit counseling course prior to filing a case and a debt management course before your case is discharged. Upon completion of each course, you will earn a certificate to file with the bankruptcy court. Therefore, failure to file either certificate means your case will be dismissed.
- Failure to attend your 341 hearing – Also known as the “meeting of creditors,” this mandatory hearing allows the trustee and your creditors to ask questions related to your bankruptcy case—under oath. Generally, this meeting only lasts a few minutes, and the creditors rarely appear. However, failure to attend your 341 hearing will lead to your case being dismissed.
- Failure to make Chapter 13 plan payments – Although you can keep all your property in a Chapter 13 bankruptcy case, you must pay back some or all your debts via a repayment plan, which typically lasts three to five years. If you stop making payments at any point, the court will often dismiss your case.
If you are interested in filing for bankruptcy in Northbrook, IL, contact Bach Law Offices, Inc. today at (847) 440-5998 to learn how our firm can help you. Get more than 40 years of combined experience on your side!
