How Can I Get a Chapter 7 Bankruptcy Case Dismissed?
Full Question:
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.