When Can a North Carolina Bankruptcy Case Be Dismissed?
There are many situations where individuals who are in financial distress will need to seek relief from their debts and receive a fresh financial start. This can be done by filing for bankruptcy. However, not all bankruptcy filings automatically lead to successful debt relief. A bankruptcy case can be dismissed if the debtor fails to comply with certain requirements or if the court determines that bankruptcy relief is not the right solution for the debtor's financial situation. By understanding the reasons why a bankruptcy case can be dismissed, debtors can prepare to complete the process successfully. These reasons may include:
Non-Compliance with Filing Requirements
To file for bankruptcy, the debtor must complete and submit a number of forms and provide supporting financial documents. Failure to file all required forms and documents in a timely and accurate fashion may result in the dismissal of the bankruptcy case. Additionally, if the debtor fails to attend the mandatory meeting of creditors (known as the "341 meeting"), the court may dismiss the case.
Failure to Comply with Court Orders or Requirements
In some cases, the court may issue orders to the debtor to complete certain tasks or provide additional documentation as part of the bankruptcy case. If the debtor fails to comply with these court orders, the case may be dismissed. Failing to complete the required credit counseling courses may also result in the dismissal of a bankruptcy case. The debtor must take any court orders seriously and respond promptly and accurately.
Abuse of Bankruptcy Laws
Bankruptcy laws are intended to help distressed debtors get back on track, not to allow people to shirk their financial obligations. If the court has reason to suspect that the debtor is abusing bankruptcy laws and is not filing in good faith, the bankruptcy case may be dismissed. Examples of abuse include filing for bankruptcy multiple times within a short period or hiding assets from the court. Making large purchases or accruing new debts immediately before filing for bankruptcy may also be seen as abusive or illegal behavior. It is important to be honest and transparent during the bankruptcy process to avoid the dismissal of a case.
Creditors' Objections
Creditors have the right to object to a debtor's bankruptcy filing if they believe that the debtor is abusing bankruptcy laws or if they will not receive fair payment through the debtor's bankruptcy case. If the court agrees with the creditors' objections and determines that bankruptcy relief is not appropriate or feasible, the bankruptcy case may be dismissed.
Contact Our Charlotte Bankruptcy Attorney
Filing for bankruptcy can be a complex and confusing process. It is important to work with an experienced bankruptcy attorney to ensure that your case proceeds smoothly and to avoid any issues that could lead to the dismissal of your case. At Blossom Law PLLC, our Mecklenburg County bankruptcy lawyer can help you understand your options and ensure that you will be able to complete the bankruptcy process successfully. Contact us at 704-256-7766 for a free consultation.
Sources:
https://www.nceb.uscourts.gov/sites/nceb/files/local%20rules%2012-1-22.pdf
https://www.law.cornell.edu/rules/frbp/rule_1017
https://www.law.cornell.edu/uscode/text/11/349