How Can I Get a Chapter 7 Bankruptcy Case Dismissed?

Full question:

We submitted a question-see below and have another question. At the meeting of the creditors (bankruptcy ch 7) the trustee stated that the attorney did not have the right exempt codes on items and she wanted 3 months copies of a credit card bill that I paid off right before I filed ($2,000.00). We want out of the bankruptcy. If we (and our attorney) do not submit anything will the trustee dismiss the case -see fact findings below.Thank youQuestion ID: 24676Category : BankruptcyState : MinnesotaQuestion: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.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 s eq.]; and(3) failure of the debtor in a voluntary case to file, within fifteen days or such additionaltime as the court may allow after the filing of the petition commencing such case, theinformation required by paragraph (1) of section 521, but only on a motion by theUnited 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.

• Category: Bankruptcy
• Date: 04/07/2025
• State: Minnesota

Answer:

We are unable to predict how a trustee may proceed, it is a subjective decision for the trustee based on the circumstances in each case. The trustee doesn't have the right to dismsiss the case, only the court does, but the trustee may object to the motion to dismiss. If creditors are prejudiced in any respect by the dismissal or if the trustee has acquired funds for distribution, a request by the debtor for dismissal will be denied. Legal prejudice is found to exist where assets which would otherwise be available to creditors are lost because of the dismissal.

Generally, the court will only dismiss if the dismissal won't prejudice the rights of creditors to collect their claims. If a person has sufficient means to pay off creditors, it is more likely for the case to be dismissed. If there is a question over whether certain assets are exempt or not, or an issue over ability to pay debts, then it is more likely the trustee will object to a dismissal. The court wants evidence that creditors will still be paid in order to dismiss the case. Having a concrete or viable plan for paying creditors outside of bankruptcy with non-exempt assets will make it more likely for the court to grant a dismissal.