Bad Faith Chapter 13 Bankruptcy: Dismissal or Conversion to Chapter 7
Dismissal or Conversion of a Bad Faith Chapter 13 Bankruptcy Case Much t o your surprise, someone you loaned a substantial amount of money to just filed for Chapter 13 bankruptcy protection and didn’t even give you the courtesy of a phone call in advance. You receive a notice in the mail from the bankruptcy court informing you of the filing. Your only proof of the debt is a signed promissory note and a copy of your cancelled check. Should you toss the notice in the garbage and just assume you’ll never see a dime from this person? Perhaps, but in some instances upon closer examination it may be determined that your debtor filed the bankruptcy case in bad faith either by deliberately omitting the disclosure of assets, income, or both. As bankruptcy relief is intended for the honest but unfortunate individuals, intentionally falsifying a bankruptcy petition can result in the bankruptcy court dismissing the Chapter 13 case or converting it to a liquidation bankruptcy case under Ch...
