What does it mean when a bankruptcy case is dismissed in Las Vegas?
Dismissal is an unsuccessful outcome for a bankruptcy case. The majority of bankruptcy cases in Las Vegas do not result in dismissal. But it’s of course important to understand the concepts in order to make sure to avoid the mistakes that could lead to dismissal.
5 Things to Know About Dismissal of Bankruptcy Cases
- A motion for dismissal of a bankruptcy case can only be made by the U.S. Trustee (which is different than the Chapter 7 or Chapter 13 trustee) or by the bankruptcy judge.
- The way this happens is, e.g., that the Chapter 7 trustee sends the case to the U.S. Trustee’s Office for review. At this point, the U.S. Trustee’s Office can decide to make a motion to dismiss a debtor’s bankruptcy case.
- “Abusive bankruptcy filing” is perhaps the most common cause for dismissal of a bankruptcy case.
- An “abusive bankruptcy filing” for a Chapter 7 case means that the debtor is believed to have enough income that they should instead be filing for Chapter 13 bankruptcy.
- An “abusive bankruptcy filing” could also mean that the debtor committed fraud and is trying to use the bankruptcy process to deal with problems that resulted from the debtor’s fraud.