You may hope your Chapter 7 bankruptcy ends with your trustee paying off your last creditor(s) and the court discharging your last debt(s). For a Chapter 13 bankruptcy, you may want to close off by making the final payment scheduled in your repayment plan. However, things may not go according to plan and your bankruptcy case may be dismissed prematurely. Read on to discover the possibilities as to why your bankruptcy case was dismissed and how a seasoned Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you in this predicament.

What are the possible reasons why my bankruptcy case was dismissed?

First of all, a bankruptcy dismissal occurs when a Kentucky bankruptcy court stops all proceedings and any adversary proceedings related to your case, all before entering a debt discharge order on your behalf. This means, unfortunately, you may still be held liable for the debts you were working toward eliminating in the first place. In other words, your efforts throughout your bankruptcy proceedings may have all been for nothing. Now, this may have transpired due to any of the following reasons:

  • You may have failed to comply with the strict rules and regulations surrounding your bankruptcy proceedings:
    • You may have failed to attend your mandatory credit counseling course.
    • You may have failed to pay your required court filing fee.
  • You may have failed to meet the eligibility requirements to be a debtor in a Chapter 7 or Chapter 13 bankruptcy case:
    • You may have filed for Chapter 7 bankruptcy too close to your previous filing date.
    • You may have piled on too much debt for Chapter 13 bankruptcy.
  • You may have been found to commit fraud during your bankruptcy proceedings:
    • You may have made false statements regarding your finances in your bankruptcy petition.
    • You may have hidden assets or lied about their true value to your bankruptcy trustee.

Why would I voluntarily request a bankruptcy dismissal?

Though you may initially struggle to find this possible, there may be an instance where you voluntarily request the Kentucky bankruptcy court to dismiss your bankruptcy case. This may happen if your bankruptcy proceedings are no longer necessary or suitable given your current financial situation. Specifically, you may voluntarily dismiss your Chapter 13 bankruptcy case at any time. More specific examples of why you may do this are as follows:

  • You may have experienced a decreased income stream and need to refile for an extended and reduced monthly repayment plan.
  • You may have experienced an increased income stream and find alternative bankruptcy options more reasonable.
  • Your court-approved monthly repayments may be higher than anticipated and make you uncomfortable.
  • You may have realized a Chapter 7 bankruptcy case would have been a better fit in the first place.

At any rate, don’t hesitate to get in touch with a competent Louisville, Kentucky consumer bankruptcy lawyer today. We, at Schwartz Bankruptcy Law Center, look forward to your phone call.