The Bankruptcy Rules and Local Rules which govern how bankruptcy cases proceed require that debtors and their attorneys do many things to help the trustee do their job in administering a bankruptcy case. When the debtor or their attorney doesn’t comply with these rules, the trustee can file a motion to dismiss the case. However, once a bankruptcy case is filed, it can be time consuming to have a case dismissed and it can bog down a trustee with paperwork, prehearing conferences, and hearings.
In order to make the process of weeding out debtors who are not playing by the rules quickly, the bankruptcy courts in the Northern District of Texas allow the trustees to file NOIs. NOI stands for Notice of Intent to Dismiss a Case. Basically it says that the debtor hasn’t done something that they need to do and as a result the trustee is certifying the case for dismissal. Once an NOI is filed the case will be dismissed unless the debtor or their attorney files a response to the NOI requesting a hearing.
Trustees can have cases dismissed using an NOI for many different reasons. These reasons include not making the first plan payment to the trustee timely, failing to provide tax returns to the trustee, failing to attend the 341 meeting of creditors, falling behind on payments to the trustee, failing to timely provide the trustee with documents needed to establish identity, and failing to cooperate with the trustee.
If you are in a bankruptcy case and receive an NOI you must contact your attorney quickly. Your case will be dismissed if you don’t cure the problems that resulted in the NOI. Attorneys can sometimes prevent dismissal even if the underlying problem can’t be resolved. For example, if the NOI is for falling behind on payments then the arrears can be cured by filing a plan modification. However, you must contact your attorney to discuss your options.
For more information about NOIs in the Dallas/Fort Worth metroplex, contact a Garland TX bankruptcy lawyer.