As a debtor, when you are looking for some relief from your overwhelming debts, filing bankruptcy can be your only option. Depending on your unique financial situation, you need to choose the right chapter that will give you the relief you need from your debts. However, you have the right to file a petition, but you are not always entitled to get a discharge. For that, a debtor has to be honest, act in good faith, provide accurate information and follow the court-approved repayment plan for the Chapter 13 bankruptcy.
Often case can get dismissed before you get a discharge as there is some inaccuracy regarding the information you have provided. That is why we always suggest that you talk to our Pittsburgh bankruptcy lawyer immediately.Why Do Bankruptcy Cases Get Dismissed?
There can be several reasons for that.
- While filing for bankruptcy, the debtor must complete a course on credit counseling from a court-approved agency. While filing for bankruptcy, the debtor must submit the certificated this has to be dated prior to the filing date. Failing to do so can lead to the dismissal of your case.
- Bankruptcy deadlines are written in stone. And that is why you need to submit all the documents on time. Along with the voluntary petition, you will have to submit schedules for a bankruptcy filing. After the initial petition, you only get 14 days for submitting the schedules. Failing to do so will result in the dismissal of your case.
- The court will appoint a trustee for overseeing the bankruptcy process. Now, if the trustee finds out that you are not complying with all the requirements of the bankruptcy court, then they may file the motion of the dismissal of the case.
- As a debtor, you will have to submit a plan for how you will be paying the creditors. Now, both your trustee and creditors can object to the plan. It can happen if you do not comply with the bankruptcy code or do not address the claims. The trustee will review the plan about paying your secured and unsecured debtors and if they don’t withdraw their objections or settle it, the case will get dismissed.
- One of the most common causes of bankruptcy dismissal is that when the debtor, due to bad finances, cannot pay the trustee. They will get a monthly payment. In case, you fall behind, they will file a motion and the case will get dismissed.
Once you get the dismissal order, you will have to file a motion of appeal to keep the dismissal aside and reinstate the bankruptcy case. You get 10 days for that.
First of all, you need to take care of the issues that led to the dismissal of the case first. Some of them can be challenging. And if the court finds out that there were some willful discrepancies then they will not set the dismissal aside but will fine you $250,000 for bankruptcy fraud and sentence you to 20 years of jail.
So, if you want your case to get a discharge and not to repeat anything to lead to dismissal, come to us at Pittsburgh Bankruptcy Law Group. Our Pittsburgh bankruptcy lawyer is here to help.