Full question:
We filed joint bankruptcy chapter 7 in MN. We would like to get out of the bankruptcy. Would they allow us to withdraw or how can we get it dismissed. We do not want to do chapter 13, we would just want to work it out with our creditors.
- Category: Bankruptcy
- Date:
- State: Minnesota
Answer:
A Chapter 7 case can only be dismissed for “cause” under 11 U.S.C. § 707(a). A Chapter 7 debtor does not have an absolute statutory right to voluntarily dismiss a Chapter 7 bankruptcy petition like a Chapter13 debtor has under 11 U.S.C. § 1307(b). Section 707(a) provides as follows:
(a) The court may dismiss a case under this chapter only after notice and a hearing and only for cause, including–
(1) unreasonable delay by the debtor that is prejudicial to creditors;
(2) nonpayment of any fees and charges required under chapter 123 of title 28 [28 U.S.C. §§ 1911 et seq.]; and
(3) failure of the debtor in a voluntary case to file, within fifteen days or such additional
time as the court may allow after the filing of the petition commencing such case, the
information required by paragraph (1) of section 521, but only on a motion by the
United States trustee.
11 U.S.C. § 707(a). Thus, a debtor does not have an absolute right to dismiss a Chapter 7 case even if begun on a voluntary petition.
Please see the case at the following link for further discussion:
http://debthelpchicago.com/2009/04/23/in-re-susan-g-hopper-a-chapter-7-debtors-motion-to-voluntarily-dismiss-her-case-is-denied/
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
