Six Ways to Avoid Getting your Bankruptcy Case Dismissed

Click here to read the full article.

To ensure your bankruptcy case progresses smoothly and avoids dismissal, follow these six detailed yet concise steps:

1. Serve All Creditors Promptly: Immediately after filing for bankruptcy, inform all creditors about the bankruptcy filing. This step is critical as it gives creditors the chance to contest the bankruptcy if they notice any discrepancies or fraudulent information. Failure to notify can lead to case dismissal.
2. Attend the 341A Meeting of Creditors: This meeting is a platform for creditors to ask questions about your finances and bankruptcy petition. While creditor attendance is optional, your presence is mandatory. Missing this meeting without rescheduling or failing to attend the rescheduled meeting can result in case dismissal.
3. Comply with the Trustee's Procedural Rules: The trustee assigned to your case may have specific requirements, such as submitting documents by mail or online before the 341A meeting. Understanding and complying with these procedural rules is crucial for the smooth progression of your case.
4. File Your Petition Correctly: Especially important for those filing without an attorney, accurately declaring exemptions—like the homestead exemption—can be complex but is vital. The U.S. trustee will scrutinize your petition for correct exemption usage, and errors can lead to dismissal.
5. Make Chapter 13 Plan Payments on Time: In a Chapter 13 bankruptcy, adhering to the payment schedule is essential. The first payment is due before the 341A Meeting, and subsequent payments must be timely to avoid dismissal for non-payment.
6. File for Discharge After Completing Chapter 13 Payments: Completing your payment plan isn't the end. You must apply for discharge, including completing a debtor education course. Failure to apply for discharge after completing payments can result in your case being dismissed.

By closely following these six steps, you significantly reduce the risk of your bankruptcy case being dismissed, paving the way for a fresh financial start. Remember, consulting with a bankruptcy attorney can offer additional guidance and improve your chances of a favorable outcome.