How can a Chapter 7 case can be dismissed?

Filing for bankruptcy is a big step for most people, one that comes with rights as well as responsibilities. Typically, a personal bankruptcy case, Chapter 7 or Chapter 13, will proceed without a hitch and the filer will obtain a fresh financial start at the end of the process. However, it is possible in some instances for a Chapter 7 bankruptcy case to be dismissed by the court. Since most filers will likely want to avoid this type of scenario, it can be beneficial to learn the basics of how a case could be potentially dismissed.

A Chapter 7 bankruptcy, or strait bankruptcy, case can only be dismissed after notice, a hearing and "for cause." This means that the situation must fit one of the following conditions: the debtor has not paid the fees or charges required by the U.S. code, the filer has caused unreasonable delay that is deemed prejudicial to the filer's creditors, or if the debtor fails to file certain information before key deadlines.

Filing the proper documents in the proper sequences - and by the proper deadline - is key to ensuring a smooth, hassle-free bankruptcy process. A Southaven bankruptcy legal professional can ensure one's case will be handled properly by the courts and processes in a manner that leads to the filer's expected outcome. The U.S. code concerning personal bankruptcy is both lengthy and complicated, and trying to navigate it on one's own during times of financial distress can be draining and ultimately unproductive.

When a Chapter 7 case is dismissed, it is usually done so via the motion of the court or the motion of a U.S. trustee. Typically, most of the filer's debts must be consumer debts in order for a dismissal to take place. In some instances, a Chapter 7 case may be converted into a Chapter 11 or Chapter 13 case. To learn more about these potential paths, a person pondering filing for Chapter 7 can contact a Mississippi bankruptcy lawyer.

Source: Cornell University Legal Information Institute, "11 U.S. Code ยง 707 - Dismissal of a case or conversion to a case under chapter 11 or 13," accessed Nov. 21, 2015

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