What Dismissal Means in Indiana
A dismissed Indiana bankruptcy case ends without a discharge. Your debts remain in full. The automatic stay terminates immediately. Creditors may resume collection actions - lawsuits, garnishments, and repossessions - the day the dismissal order enters.
Dismissal is not the same as discharge denied:
- Dismissed: the case is thrown out. You can often refile (subject to the Section 109(g) 180-day bar).
- Discharge denied: the case stays open but specific debts (or all debts) are not wiped out under 11 U.S.C. Section 727 or 1328. You cannot simply refile to fix this.
Indiana Federal Bankruptcy Data
Dismissal rate is the single most important completion metric. A dismissed case does not discharge debts.
Numbers below come from the Federal Judicial Center Integrated Database covering 3,325 consumer bankruptcy cases from Indiana's federal bankruptcy courts.
| Chapter | Cases Filed | Discharge Rate | Dismissal Rate |
|---|---|---|---|
| Chapter 7 | 792 | 97.5% | 2.0% |
| Chapter 13 | 2,533 | 69.8% | 29.5% |
Rates computed on resolved cases only. Source: FJC Integrated Database.
Top Reasons Cases Are Dismissed in Indiana
Based on FJC data and the national distribution of dismissal orders, the most common dismissal reasons in Indiana are:
- Incomplete Section 521 documents - missing schedules, statements, pay stubs, or tax returns. Single largest national category.
- 341 meeting non-attendance - missing the meeting of creditors. Trustees usually give one continuance; a second miss often triggers a motion to dismiss.
- Plan payment default (Chapter 13 only) - falling behind on plan payments to the trustee.
- Means test failure under Section 707(b) - Chapter 7 filers above median whose expenses cannot get them below the abuse threshold.
- Bad faith filing under Section 707(b)(3) - totality of the circumstances.
- Failure to complete credit counseling - required pre-filing and before discharge.
- Lack of attorney - LLCs and corporations cannot file pro se (Rowland). Sub V and Chapter 11 debtors that lose counsel face conditional dismissal.
Indiana Dismissal Pattern
Indiana's Chapter 7 dismissal rate of 2.0% is below average. Filers who submit complete schedules and attend their 341 meeting generally reach discharge.
Indiana has a relatively low Chapter 13 dismissal rate (29.5%). Plans are more likely to reach completion here than in most states.
Indiana Cure Procedure
Most Indiana dismissals can be cured within a narrow window. The typical path:
- Identify the dismissal reason. Read the dismissal order carefully - it will usually state whether the dismissal is with or without prejudice and cite the specific deficiency.
- Fix the underlying problem. File missing schedules, complete the counseling course, cure the payment default, etc.
- File a motion to vacate or reconsider (typically within 14-30 days of the dismissal order under Rule 9023/9024).
- Stipulate with the trustee where possible - a stipulated cure order is much faster than an adversarial motion.
- If motion fails, refile - subject to the Section 109(g) 180-day bar and reduced automatic stay protections under Section 362(c)(3)-(4) for repeat filers within 12 months.
Indiana trustee/oversight: Region 10 U.S. Trustee. 2 districts; standing Chapter 13 trustees available in both.
Section 109(g) Refiling Bar in Indiana
If your prior case was dismissed under specific circumstances, 11 U.S.C. Section 109(g) bars refiling for 180 days:
- The case was dismissed for willful failure to abide by court orders or to appear before the court; OR
- The debtor voluntarily dismissed after a creditor filed a motion for relief from the automatic stay (i.e., the debtor dismissed to avoid losing the stay fight).
Most dismissals do NOT trigger the 180-day bar. If your case was dismissed for simple procedural reasons (missing paperwork, first 341 no-show without willfulness), you can usually refile immediately. See the 109(g) refiling bar explainer.
Reduced Automatic Stay on Refile
Even when Section 109(g) doesn't apply, repeat filers face a shortened automatic stay under 11 U.S.C. Section 362(c):
- Second filing within 12 months: stay lasts only 30 days unless extended by court order (362(c)(3)).
- Third filing within 12 months: no automatic stay attaches at all unless the court orders otherwise (362(c)(4)).
To extend the stay, file a motion to extend within the 30-day window and prove the case was filed in good faith. Indiana courts vary on how strictly they enforce this.
If Your Indiana Case Was Dismissed Due to Attorney Conduct
If your case was dismissed while represented by counsel and you believe the attorney's conduct contributed to the dismissal (missed deadlines, failed to file schedules, inadequate communication), consider:
- Section 329(b) fee disgorgement - 11 U.S.C. Section 329(b) allows the court to order the attorney to return fees that exceed the reasonable value of services. See section329.org.
- State bar complaint - Indiana's bar authority handles attorney discipline for missed deadlines, inadequate representation, and fee disputes.
- UST / Bankruptcy Administrator referral - Region 10 U.S. Trustee handles attorney misconduct referrals through the trustee's office.
See bankruptcylawyerreview.org for the full attorney-review framework.