Chapter 13 Debtor has Absolute Right to Dismiss Case at “Any Time” Even Where Creditors Allege Bad Faith

Chapter 13 Debtor has Absolute Right to Dismiss Case at “Any Time” Even Where Creditors Allege Bad Faith

A few creditors of a Chapter 13 Debtor moved a Bankruptcy Court to convert the Debtor’s case to one under Chapter 7. The Debtor asked the Court to dismiss his Chapter 13 case and not covert it to Chapter 7.

One of the creditors argued that the Debtor’s voluntary dismissal should be denied on three grounds: (1) that its motion to convert was pending resolution before the Debtor filed his voluntary dismissal; (2) that Debtor’s bad faith and abuse of the bankruptcy process warrants a conversion to chapter 7; and (3) that conversion is in the best interest of creditors.

Two days before the hearing was to be held on the creditor’s objection, the Debtor filed a Notice of Voluntary Dismissal.

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