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The bankruptcy process

Dismissal

A court order that ends a bankruptcy case. Unless the court orders otherwise, it does not stop the same debts from being discharged in a later case. 1 2

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How it works

A court may dismiss a Chapter 7 case only after notice and a hearing and only for cause. Causes named in the law include unreasonable delay that harms creditors, not paying the required court fees and not filing the required information on time. 1

Other routes lead to the same result. A Chapter 7 filing that is presumed abusive under the means test may be dismissed or converted, usually to Chapter 13. A case may be dismissed if credit counseling was not completed before filing. In Chapter 13, the court may dismiss or convert the case if the debtor fails to make the payments due under the confirmed plan. 3 4 5

Dismissal generally returns the property of the estate to whoever held it just before the case began. 2

Filing again can carry a cost. An individual cannot file a new case for 180 days if the earlier one was dismissed for willfully failing to obey court orders or to appear, or if the debtor chose dismissal after a creditor asked for relief from the automatic stay. And if a case was dismissed in the past year, the automatic stay in a new case generally ends after 30 days unless the court extends it. 6 7

Common questions

Is a dismissal the same as a discharge?

No. A discharge is a release from personal liability for certain debts. A dismissal ends the case, and the debts can generally still be discharged in a later one unless the court orders otherwise. 3 2

What does dismissed without prejudice mean?

It is a court action that allows a later filing. A dismissal with prejudice prevents an identical lawsuit from being filed later. 3

Can a case be dismissed for missing a fee installment?

Yes. If a debtor fails to pay any installment toward the filing fee, the court may dismiss the case after a hearing on notice to the debtor and the trustee. 8

Related reading

All bankruptcy terms

Sources

  1. 11 U.S. Code § 707(a) (Cornell LII)
  2. 11 U.S. Code § 349(a), (b)(3) (Cornell LII)
  3. Glossary of Legal Terms (uscourts.gov)
  4. U.S. Trustee Program: Credit Counseling & Debtor Education Information
  5. Chapter 13 - Bankruptcy Basics (uscourts.gov)
  6. 11 U.S. Code § 109(g) (Cornell LII)
  7. 11 U.S. Code § 362(c)(3)(A), (c)(4)(A)(i) (Cornell LII)
  8. Federal Rules of Bankruptcy Procedure, Rule 1017(b) (Cornell LII)

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