The most common example of a dismissal is due to nonpayment of your Chapter 13 bankruptcy plan payment.  When you enter into a Chapter 13 bankruptcy agreement, you state that you will make a payment to the court each month for the duration of the bankruptcy; when you do not make that payment to the court, the bankruptcy Trustee will put you up for a dismissal hearing.  At that time, the Trustee will either allow you to resume making payments (which will normally increase to compensate for the missed payments), or they as the courts to kick out your bankruptcy for failure to make payments. The bankruptcy court and the bankruptcy Trustee want your bankruptcy to be successful so if they can find a way to work with you they normally will.

However, if you default on plan payments again, or for whatever reason, he has not received the full amount of the monies from the garnishment (or does not receive the money at all) then he will file a motion to dismiss your case (which the court will find sufficient evidence to do so) and will file an order for dismissal of your case.  Once your case is dismissed, your personal financial circumstances revert back to the state that they were at the time that you filed your bankruptcy.  Meaning if you were behind on your home and it was in foreclosure status, you will go right back to being behind and in foreclosure status yet again.

Nonpayment is the most common reason for a dismissal, but there are other cases in which it can happen. The bottom line is, making your payments and complying with any bankruptcy rules and regulations means you shouldn’t have any problems.