Absolute Right to Dismiss? Sixth Circuit Says “Yes”

By Academy Staff

Section 1307(b) provides:

On request of the debtor at any time, if the case has not been converted under Section 706, Section 1112, or Section 1208, the court shall dismiss a case under this chapter.

This seemingly straightforward provision has generated significant litigation and produced multiple conflicting decisions. Does a Debtor have a right to dismiss a Chapter 13 case where Debtor has been acting in bad faith? Where Debtor is clearly (and admittedly) attempting to obtain an automatic stay with no intent of proceeding? Where Debtor is . . .

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