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How a Debtor Dismisses a Voluntary Chapter 7 Bankruptcy Case
JASON S. RIGOLI
Sometimes a debtor regrets the decision to file their chapter 7 bankruptcy case. Naturally, the debtor looks to section 707 of the Bankruptcy Code, titled“ Dismissal of a case or conversion to a case under chapter 11 or 13.” 11 U. S. C. § 707. However, as the Honorable Judge Grossman recently held, that might not be correct.
Section 707( a) permits dismissal, after notice and a hearing,“ only for cause,” which includes unreasonable delay, nonpayment of any fees [ or ] and charges under chapter 123 of title 28; and failure of the debtor to file information required under paragraph( 1) of Section 521( a). 11 U. S. C. § 707( a)( 1)-( 3). The grounds set forth in subparagraph( 3) are only available“ on a motion by the United States trustee.” 11 U. S. C § 707( a)( 3). These are not the exclusive bases to form“ cause.” In re Murray, Case No. 25-24862- SMG, 2026 Bankr. LEXIS 351 at * 2, 2026 WL 376350( Bankr. S. D. Fla. Feb. 9, 2026).
In Murray, Judge Grossman stated it is“ questionable, … whether an individual []‘ debtor’ s remorse’ … could constitute cause for dismissal under section 707( a).” 2025 Bankr. LEXIS 351 at * 2. After analyzing the two tracks on which individual chapter 7 cases could proceed, Judge Grossman found that where there was no chance of surplus estate the pro se debtor’ s“ regret” of filing did not constitute“ cause” and therefore could not form the basis for dismissal under 11 U. S. C. § 707( a). Murray, 2025 Bankr. LEXIS at * 2-4.
Judge Grossman did, however, identify an alternative route for dismissal by the regretful individual Chapter 7 debtor. Section 305( a)( 1) of the Bankruptcy Code“ provides that "[ t ] he court, after notice and a hearing, may dismiss a case under this title, or may suspend all proceedings in a case under this title, at any time if... the interests of creditors and the debtor would be better served by such dismissal or suspension.’” Murray, 2025 Bankr. LEXIS 351 at * 4( footnote omitted and alterations in original). Judge Grossman disagreed with many other courts finding that Section 305( a)( 1) is“ an extraordinary remedy,” stating instead that“ nothing in the text of the statute … supports [ that ] construction.’” Id. at * 4. In Murray, the debtor stated she intended to work with her creditors outside of bankruptcy and none of the creditors nor the chapter 7 trustee had objected to the debtor’ s request, therefore, Judge Grossman found that the“ interest of creditors and the debtor would be better served by dismissal of her case.” Id. at * 5.
This article submitted by Jason S. Rigoli, Esq., Furr and Cohen, P. A., 2255 Glades Road, Suite 419A, Boca Raton, FL 33431, jrigoli @ furrcohen. com
11 U. S. C. §§ 101, et seq.
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