The rules of applying for bankruptcy in Texas involves honestly, adhering to the federal regulations and attending mandatory hearings. According to The Balance, bankruptcies are hard, especially in chapter 13. No matter how hard the creditors try, the courts end up dismissing some of these cases.
People file for bankruptcy to get debt forgiveness. Sometimes this happens while other times, the court dismisses the case. According to the United States Bankruptcy Court, the decision for dismissing a bankruptcy case depends on the following factors.
- Bankruptcy fraud: If the debtor fails to disclose the truth but instead provides inaccurate information about the assets, financial information, and liabilities, the judge will close the case.
- Incomplete education courses: Failure to complete the mandatory educational courses before filing a bankruptcy case is a hopeless situation, and the bankruptcy will just get dismissed.
- Failing the Means Test: A creditor may fail the means test if their disposable income is not low enough.
- Not paying the court filing fees warrants a bankruptcy case dismissal.
- Failing to file the needed forms and supporting documents necessary in a bankruptcy case.
- Failing to attend creditors’ meetings, which allows the trustee and the creditors to ask debtors questions about financial affairs and bankruptcy papers.
Debtors understand that chapter 13 cases are challenging to win, but they still file them anyway. Sometimes they do not do this to get the debt discharged but to buy time.
They want to benefit from the automatic stay and do not intend even to finish the case. There are so many reasons for filing for this bankruptcy with the sole aim of being buying time.