Filing for bankruptcy is supposed to give you a fresh start.
But here’s the catch … One little error on your paperwork can cause your entire case to be dismissed without ever receiving a discharge. Now the creditors come back, the repo trucks return and you are back where you started.
The good news?
Nine out of ten of these errors can be completely avoided if you know what to avoid. By preparing yourself you can:
- Keep your case on track
- Protect your property from repossession
- Walk away with your debts discharged
Here is what trips most people up…
What you’ll find inside:
- Why So Many Bankruptcy Cases Get Dismissed
- The Most Common Filing Mistakes
- How To Avoid a Denied Discharge
- What Happens If Your Case Gets Tossed
Why So Many Bankruptcy Cases Get Dismissed
Bankruptcy filings are surging right now. Data from the U.S. Courts shows that bankruptcy filings increased 10.6% in 2025, with non-business bankruptcies increasing by nearly 11%. More people are filing… yet more bankruptcies are failing.
Here’s why that matters:
Once your case is dismissed by the court, the automatic stay is gone. Wage garnishments, foreclosures, lawsuits, and yes — car repossessions can all resume on the same day.
An experienced Arkansas Bankruptcy Lawyer will explain that often the difference between effective bankruptcy and a dismissal is slight missing or avoidable mistakes. Missing paperwork, forgotten courses, incomplete schedules. Small details that can prevent you from staying repossession of your car, home or other secured property.
A dismissal is brutal because:
- Your debts stay: You still owe everything you owed before
- Creditors come back: Repossession, foreclosure, and garnishment can resume immediately
- Might not be able to refile: Comes with a 180-day wait
Pretty rough, right?
The Most Common Filing Mistakes
Now for the dumb mistakes that end up in the DISMISSAL FILE. These are the ones you will see time and time again.
Skipping the Credit Counseling Course
Shocking simple, but it kills more cases than you would think.
Federal law mandates that you complete a credit counseling course through an approved agency NO MORE THAN 180 days BEFORE filing. If you fail to do it — or do it but don’t file the certificate with your petition — the court can dismiss your case at the outset.
Oh yeah, there is another course (debtor education course) that you must complete AFTER filing. If you don’t complete that one, you don’t get your discharge either.
Hiding or Forgetting Assets
This is the big one.
Your bankruptcy petition has to list every single asset you own. We’re talking about:
- Bank accounts
- Vehicles
- Real estate
- Tax refunds you’re owed
- Side hustle income
Per 11 U.S. Code Section 727, a debtor cannot receive a discharge if they have concealed, destroyed, or failed to maintain records of their assets. Even if you “forgot” … the trustee may not agree.
Truthfulness is your best policy in this situation. Just tell them everything. The trustee has heard it all.
Failing the Means Test
The means test determines whether you qualify for Chapter 7. Basically, it compares your income to the median income for your state.
If the math is wrong or you claim that you qualify when you don’t, your case will be tossed. The court may also refer you in to Chapter 13 instead … which is a 3-5 year repayment plan you didn’t plan on.
Missing the 341 Meeting of Creditors
This is a mandatory hearing. Not optional. You have to show up.
The trustee interviews you under oath regarding your paperwork and financial affairs. Meetings are typically brief and creditors seldom attend. However, do not miss the meeting without first notifying the trustee — or they will request that the court dismiss your case. Flat out.
Falling Behind on Chapter 13 Payments
Chapter 13 cases are unique. They entail a 3-5 year repayment plan that you must comply with. Failure to make payments is the leading cause of case dismissal.
The numbers don’t lie — nationally, 99.96% of Chapter 13 cases filed pro se are dismissed according to bankruptcy court data.
How To Avoid a Denied Discharge
A denied discharge is worse than a dismissal. Essentially the court is saying that you don’t deserve to have your debts discharged (forgiven) under any circumstances — usually due to fraud, dishonesty, or failure to obey court orders.
Here’s how you avoid that disaster.
Tell The Truth — All Of It
Don’t transfer assets to your relatives prior to filing. Don’t omit creditors from your creditor matrix. Don’t commit fraud on your means test.
The court will find out. They always do.
Keep Your Records Together
You’ll need pay stubs, tax returns, bank statements, a complete list of debts, etc. Get a folder, get organized. One missing Schedule A/B, One missed creditor = automatic dismissal.
Don’t Run Up Debt Right Before Filing
One thing most people don’t realize can ruin their bankruptcy case. Making extravagant purchases or cash advances immediately before filing is fraud in the eyes of the trustee. Large purchases with credit cards within 90 days of filing are presumed nondischargeable.
Hire The Right Help
Bankruptcy law is complex. A seasoned attorney is familiar with the local courts, trustees, and nuances that can make or break your case.
What Happens If Your Case Gets Tossed
So you missed something. The case got dismissed. Now what?
It depends on whether the dismissal was “with prejudice” or “without prejudice”:
- Without prejudice: You can usually fix the issue and refile, sometimes right away
- With prejudice: The court prohibits you from filing again for a designated period of time — typically 180 days
Either way, the automatic stay ends. Repossessions can resume. Foreclosures can proceed. Lawsuits can be filed. Wage garnishments can continue.
When you file after a dismissal within 12 months of the previous case, your automatic stay will only last for 30 days unless you file a motion to prolong it. When you receive two dismissals within 12 months, you will not receive an automatic stay.
Final Thoughts
Bankruptcy filing mistakes are common. They are also mostly preventable.
The biggest reasons cases fail are the same reasons most cases fail — skipping classes, missing paperwork, concealed assets, missed meetings, and Chapter 13 plans falling through. Dodge those minefields and your chances of receiving a discharge increase significantly.
Quick recap:
- Finish both required courses and file the certificates
- Disclose every single asset, debt, and income source
- Show up to every hearing
- Don’t run up debt or transfer property right before filing
- Stick to your repayment plan if you’re in Chapter 13
Bankruptcy should be a new beginning, not another crisis. Take care of it properly.