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:
- State: Minnesota
Answer:
A Chapter 7 case can only be dismissed for cause under 11 U.S.C. § 707(a). Unlike Chapter 13, a Chapter 7 debtor does not have an absolute right to withdraw their bankruptcy petition. Section 707(a) states that:
(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.
Thus, a debtor does not have an absolute right to dismiss a Chapter 7 case even if it was initiated voluntarily. The trustee does not have the authority to dismiss the case; only the court can do that. However, the trustee may object to a dismissal. If creditors are harmed by the dismissal or if the trustee has collected funds for distribution, the court is likely to deny the request for dismissal. The court aims to ensure that creditors can still collect their claims. If you have the means to pay off creditors, your case is more likely to be dismissed. Conversely, if there are questions about asset exemptions or your ability to pay debts, the trustee may object to the dismissal. A viable plan to pay creditors outside of bankruptcy will strengthen your case for dismissal.
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.