A pro se debtor failed to obtain the pre-bankruptcy credit counseling required by 11 U.S.C. § 109(h) and the bankruptcy court sua sponte issued an Order to Show Cause why the case should not be dismissed. Despite opposition from the Chapter 7 trustee, who, having been alerted by Wells Fargo, believed there were non-exempt funds available, the bankruptcy court held that the case must be dismissed.
The lesson here is that filing a Chapter 7 bankruptcy without an attorney is fraught with dangers and pitfalls both resulting from the failure to obtain the admittedly pointless credit counseling (if such requirement, which basically amounts to a private filing fee, were eliminated, Chapter 7 trustees could be paid more for "no asset" cases without burdening debtors) and from having funds that almost certainly could have, with a small amount of perfectly appropriate planning, been shielded from the trustee.
For a copy of the opinion, please click here: