Terminating a Utah Bankruptcy Case

Salt Lake Bankruptcy Law Firm

The Bankruptcy Code provides three ways in which a bankruptcy case can be terminated before the time it is closed. Those include: conversion to another bankruptcy chapter, entire dismissal, and/or the court can abstain and order suspension of the case.

Necessity of a Motion

A motion must be made for conversion, dismissal or suspension in a bankruptcy case.  This motion should be filed with the court clerk or some other authoritative person depending on the district where the case is pending. This motion or petition should be made with not less than twenty days notice to the debtor, creditors and trustee. Each bankruptcy chapter has different requirements and the rules for conversion also vary with the debtor and his creditors.

Conversion

Conversion of one bankruptcy chapter to another chapter is only possible of the debtor qualifies as a debtor under the desired chapter. Therefore, a debtor should consult a lawyer to decide whether the debtor meets the requirements of the desired bankruptcy chapter.

Dismissal

Dismissal or suspension of a bankruptcy case by the court can be made at any time if it is believed that it is in the best interest of both the debtor and his creditors. Dismissal is not limited to involuntary cases; however, there are some limitations that apply to voluntary cases. A petition may not be suspended or dismissed before a hearing. Further, there must be a meeting of creditors before the court can decide on a petition or motion to convert or suspend a bankruptcy case. The debtor in a bankruptcy case is required, under oath, to submit to examination in a creditors meeting. The duty is mandatory in some courts and if the debtor does not attend then the petition will be dismissed. Bankruptcy courts have no power to excuse the debtor from his attendance in a meeting of creditors. If the debtor lives far away from the court then the meeting can be issued by phone or video.

Your Utah Bankruptcy Law Firm

To obtain excellent legal advice and find out more about the bankruptcy process, call Salcido Law Firm at 801.413.1753 or email us.

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