Legal Question in Bankruptcy in California
Dismissing a Chapter 7 case.
My question is how difficult is it to petition the court to voluntarily dismiss a Chapter 7 Bankruptcy case? (Central Dist. Los Angeles). In addition I would like to ask if the court has pre printed forms for the petition and the order to be signed by the judge. If not should I have someone draft them from scratch?
Thank you very much.
2 Answers from Attorneys
Re: Dismissing a Chapter 7 case.
Motions to dismiss Chapter 7 cases are rarely granted when brought by the debtor. The test is whether it is in the best interests of the CREDITORS, not the debtor. So, if there are non-exempt assets which creditors could get, it is doubtful the motion would be granted (of course, it depends on what your reasons are, which you haven't stated). There is no form; it would need to be done from scratch and comply with all applicable local and federal bankruptcy rules.
Re: Dismissing a Chapter 7 case.
Thanks for your question. There are no pre-printed forms for a Chapter 7 dismissal, and as Mr. Markus mentioned, a dismissal is very hard to get. The trustee appointed in your case has to approve the dismissal, which is nearly impossible (except for the reasons previously described).
Another tactic that is usually more successful is to convert your case to a Chapter 7 bankruptcy, and then have it dismissed for not filing the plan or not making payments. Although frowned upon, this may work if you don't need to file again for another 180 days (which is what the court may set as a bar date until you can file again).
Thanks, and please feel free to email me directly, at [email protected], if you have any other questions, or need more information.
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