If the circumstances indicate bad faith, a court can dismiss a debtors'Chapter 13 petition.

Question

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It is true that if a court finds that a debtor has filed their Chapter 13 petition in bad faith, they can dismiss the petition. This is because Chapter 13 is designed to help honest debtors restructure their debts and repay them over time, not to let dishonest debtors take advantage of the system. Examples of bad faith might include filing for Chapter 13 just to delay foreclosure or to avoid paying back certain debts.

If the Circumstances Indicate Bad Faith, a Court Can Dismiss