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A Chapter 9 case can be dismissed for various reasons after notice and hearing.  The grounds of dismissal include:

  • lack of good faith in filing;
  • the petition does meet the requirements of Chapter 9;
  • for cause, such as the lack of prosecution;
  • unreasonable delay by the debtor that are prejudicial to creditors;
  • failure to propose or confirm a plan by the time determined by the court;

If the confirmation order in a chapter 9 case is procured through fraud, at any time within 180 days after entry of the confirmation order, the court may revoke the order of confirmation after notice and a hearing.

Inside Dismissal