Can I Dismiss my Chapter 7 After I File?

Have you found yourself drowning in debt? Have you done everything you can think of to make more money and reduce any unnecessary spending but each month you fall further behind? Are bill collectors calling you? It’s said that financial stress is one of the greatest stresses you can face. If you’ve found yourself unable to keep up with your monthly obligations, it’s time to consider bankruptcy; it may be the relief that you desperately need.

As with any large decision, it’s a good idea to do some research before taking action. As an experienced bankruptcy attorney, I’m here to help you understand the consequences of filing and to explore all your options so you can come up with a plan that deals with your debt and protects your property.

 

Guidelines

It’s always a good idea to have a plan for your finances, especially when it comes to bankruptcy. Bankruptcy is a legal process designed to give you relief from unmanageable debt. However, once you start down the road to filing, it can be difficult to change your mind and have your case dismissed.

With a Chapter 13 bankruptcy, you can request that your case be dismissed at any time, and as long as you can prove that you are able to make all your payments in full each month, there shouldn’t be a problem. When filing a Chapter 7 bankruptcy, which is designed to discharge most debts immediately, if you change your mind and want to have your case dismissed, you’ll need to have a valid reason for making the change. The court will look at all the factors and how that change would affect your creditors.

 

Your Assets and Creditors

If you have considerable assets or property, we’ll discuss your options prior to filing a Chapter 7 bankruptcy. This is important because if you file a Chapter 7 and the court trustee wants to take some of your non-exempt assets to repay your debt, you cannot change your mind. We’ll look at all your options including any exemptions that may be available to you long before we get to that point.
Creditors will expect to receive proceeds from any sale of non-exempt property. If you change your mind about filing, the creditors will have been “prejudiced” because they will now not receive the money owed. The only approval will come if you can pay your creditors somehow.

There are a few ways you can go about trying to have your case dismissed. You could choose not to attend your 341 meeting or ask the court trustee to dismiss your case. The trustee may not dismiss your case unless it does not include any non-exempt assets. It may be a better option, if you cannot have your case dismissed, to convert your case from a chapter 7 to 13. A Chapter 13 bankruptcy will give you the chance to make a payment plan over 3-5 years. This will allow you to keep your non-exempt property, and you will end up paying far less than not filing at all.

 

Your Advocate

There is a lot to know surrounding bankruptcy, and I don’t want you to make any damaging mistakes along the way. I am knowledgeable and will help build a solid case for you so that you can have a fresh start on life.