7 reasons a bankruptcy case could be dismissed

Category: Debt

Usually as a last resort, many people will declare bankruptcy in an attempt to resolve debt issues and to begin again with a clean slate. Unfortunately, not all bankruptcy filings go as planned, and there are circumstances in which the court may dismiss them completely, instead of discharging the filer’s debts. Even though dismissals can happen with any type of bankruptcy, they’re more common with Chapter 13 bankruptcies.

If you filed for bankruptcy, but your case was dismissed, it may have been because you:

Requested a dismissal voluntarily

Bankruptcy isn’t a solution for all debtors, and some individuals recognize this after they’ve already filed and started the process. There are several reasons why a filer might decide to have their bankruptcy case dismissed—maybe they have been having a hard time making the required payments in a Chapter 13 bankruptcy, or they realize that some of their debts can’t be discharged. If a filer decides they no longer want to declare bankruptcy, they may be eligible for a voluntarily dismissal.

Didn’t take the required credit counseling course

Anyone contemplating bankruptcy is required to take an approved credit counseling course before they will be eligible to file. The course, which can be taken online or over the phone, is mandatory, and failure to provide a certificate of completion can be reason for dismissal.

Didn’t supply accurate information

Hiding assets in order to avoid paying back creditors or falsifying any information on your bankruptcy forms is not just grounds for dismissal, but it is bankruptcy fraud, which is a federal offense.

Didn’t pass the means test

When filing for Chapter 7 bankruptcy, you must pass a means test in order to qualify. This test takes several factors into consideration, such as your bills, debt, and earnings. A filer won’t be eligible for Chapter 7 bankruptcy if they don’t pass the means test, which would cause their bankruptcy to be dismissed.

Didn’t pay the required court-filing fees

Unless the filer is eligible for an exemption, they must pay fees when filing for bankruptcy. Failing to pay these required fees can result in dismissal.

Fell behind on Chapter 13 bankruptcy payments

If someone files for Chapter 13 bankruptcy, the case can be dismissed if the filer defaults on the payments that are required.

Didn’t show up at the 341 meeting

The 341 meeting is a meeting with a court-appointed trustee and usually occurs about 20-50 days after filing for bankruptcy. This mandatory meeting, which is also referred to as a meeting of creditors, can result in dismissal if the individual filing was a no-show.


Have you thought about filing bankruptcy due to debt troubles? If you’re receiving structured settlement or annuity payments, you may want to explore your other options. You can potentially sell some or all of your future payments to Peachtree Financial Solutions, and in exchange, we can offer you that money sooner and in a lump sum payment. The money you receive from Peachtree Financial Solutions can be used to help pay off debt, and maybe even help you avoid bankruptcy. Contact Peachtree Financial Solutions today to learn more about selling your future structured settlement payments and receiving your cash sooner.

Nothing above is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services.

Tags: bankruptcy, chapter 13 bankruptcy, credit, credit counseling

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