A Chapter 7 case may be dismissed only for cause. Unlike in other chapters, a Chapter 7 debtor may not dismiss his case voluntarily. Whether to grant a Chapter 7 dismissal is within the discretion of the Court. The principal question for the court to consider is whether a dismissal will cause some plain legal prejudice to creditors. Other factors to weigh include the debtor's good faith, whether the debtor is guilty of laches, and the absence or presence of creditor consent.
Equitable considerations are relevant only in the absence of dispositive legal arguments.
Legal considerations must take precedence. Where the debtor seeks dismissal, the Court also should consider whether there are substantial non exempt assets available for distribution to creditors. An ability for a Chapter 7 debtor to pay creditors outside of bankruptcy, however, does not necessarily constitute cause for dismissal. Questions of efficiency and economy must also be addressed. Prejudice to creditors remains the most important consideration.