Author Question: What effects does a dismissal have on a bankruptcy case? Explain the difference between a voluntary ... (Read 16 times)

neverstopbelieb

  • Hero Member
  • *****
  • Posts: 534
What effects does a dismissal have on a bankruptcy case? Explain the difference between a voluntary dismissal and an involuntary dismissal.
 
  What will be an ideal response?

Question 2

A debtor may want to reopen a case if it is alleged that one of the creditors engaged in some form of ________.
 
  Fill in the blank(s) with correct word



triiciiaa

  • Sr. Member
  • ****
  • Posts: 349
Answer to Question 1

A bankruptcy dismissal occurs when the bankruptcy court ceases administration of the case and no longer has jurisdiction over the matter, including any adversary proceedings that other parties have filed. In simple terms, a dismissal means that the debtor's case has been thrown out of court. The debtor's obligations are not discharged, the Automatic Stay terminates, and creditors are now free to pursue any legal collection efforts. A debtor, creditor, trustee, or other party in interest may seek a dismissal.

In a voluntary dismissal, the debtor decides not to pursue the bankruptcy case and consents to its dismissal. The debtor may want to dismiss the case voluntarily when he or she finds new employment and now can pay creditors, reaches a settlement with creditors, or finds that the court has determined that some or all of the obligations are not dischargeable.

An involuntary dismissal is typically initiated when the debtor has failed to comply with the requirements of the Bankruptcy Code or Federal Rules of Bankruptcy Procedure. Some examples of noncompliance issues that the debtor can get into are failing to:

 Attend the 341 hearing.
 File a Chapter 11 plan in a timely fashion.
 File monthly financial statements (Chapter 11 cases).
 File tax returns over the previous four years.
 File the proper documents.
 Make payments under a repayment plan (Chapter 13 cases).
 Meet deadlines.
 Participate in the required credit counseling and debt management courses.
 Pay court fees or charges.

Answer to Question 2

misconduct



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

For a complete list of videos, visit our video library