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Voluntary vs. Involuntary Case Dismissals When Filing Bankruptcy in Luverne, MN

August 14th, 2019 · No Comments

Across the U.S., individuals and businesses are filing bankruptcy each month. Not only is the process of bankruptcy designed to help filers come back from severe debt as well as sometimes give creditors some financial return, it also provides a system of balance for the economy. If you are considering filing bankruptcy in Luverne, MN or the surrounding area to discharge your debts, you are contributing to the health of the economy of your community, Minnesota, and the U.S. as a whole.

Because bankruptcy was designed to help debtors, creditors, and the economy alike, bankruptcy law has complex, strict legal boundaries that can be difficult to navigate without the help of an experienced professional. Behm Law Group, Ltd. provides the advice and guidance required to file a successful case as an individual or as a business.

Filing bankruptcy is one of the few legal processes that individuals or businesses can take on without representation. Utilizing the skills of an attorney, however, is highly recommended because of the intricate nuances of bankruptcy law. When filing bankruptcy, every case can have unique and unexpected conditions. Navigating through these conditions without an expert’s advice often results in a case being dismissed or property being permanently lost.

When it comes to case dismissals, the guidance of an attorney can help you avoid involuntary dismissals or, in certain situations, receive a voluntary dismissal.

Filing Bankruptcy: Types of Dismissals

Involuntary Dismissal

If your case doesn’t meet the requirements of the bankruptcy code, you could face an involuntary case dismissal. This occurs most commonly when forms and documents are missing or are inaccurate or if the filer fails to meet pre-bankruptcy requirements. Other reasons your case may be dismissed include failure to make alimony or child support payments during your case period (including the three to five years of a Chapter 13 repayment plan), failing the Means Test if you plan to file Chapter 7, failure to pay court fees, lack of a credit counseling certificate, and more.

 

Voluntary Dismissal

There are many occasions when a filer may request dismissal on a voluntary basis. In some cases, it can be difficult to convince the court to grant the dismissal, and a bankruptcy lawyer can be key to petitioning for and processing the dismissal in these conditions. Dismissal of a Chapter 7 case, for example, is rare. The court will only grant a voluntary dismissal if your creditors will not receive any compensation or benefit from the liquidation of your assets (i.e. it’s not in your creditors best interests). Dismissal from a Chapter 13 case is much more attainable. Typically, the court cannot hold you to a repayment plan against your will, and you can file a dismissal request to end your case whenever you want. However, this does allow creditors to have the automatic stay lifted and resume debt collection activities.

 

To learn more about dismissals and why an attorney is important when filing bankruptcy in Luverne, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.

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