Can I cancel my bankruptcy if I change my mind after its been filed?
The short answer to this frequently asked question is, sometimes. For example, with a Chapter 13 Bankruptcy you do have every right to voluntarily dismiss a bankruptcy after it’s been filed. However, with a Chapter 7 Bankruptcy, in order to dismiss an active bankruptcy case, you need to make a compelling case and be approved by the bankruptcy court.
But before jumping through the hoops of legal procedure, you might want to ask yourself, “Do I really want to cancel my bankruptcy?” Be proactive and first take the time to learn about the following implications of cancelling a bankruptcy:
Impact on Credit Report
Even if your bankruptcy is dismissed before any debts are discharged, your bankruptcy filing will still remain on your record for up to 10 years.
Ability to File again
After backing out of a bankruptcy filing, the judge may restrict your ability to file bankruptcy again in the future. Should you continue to struggle financially, this will give you less options for recovering from your debt.
You May Be Denied
As filing is a legal process with complicated and time-consuming policy and procedure, the same goes for dismissing bankruptcy. A motion to dismiss must be submitted to the bankruptcy court, and in Chapter 7 specifically, a hearing will follow for you to present your case for cancelling the bankruptcy. With a Chapter 7, the bankruptcy court is most concerned with not negatively impacting the creditors involved. If your reason for cancelling is not in the best interest of the creditors, your motion to dismiss will likely be denied.
Filing or cancelling bankruptcy is not something that should be handled lightly. There are long-lasting consequences that should not be overlooked. In order to best approach the idea of bankruptcy, discuss your specific situation with an experienced Bankruptcy Attorney. To set up a consultation give us a call at (702) 998-1188, info@ljllawlv.com or schedule a consultation online.
For more information and answers to frequently asked questions regarding bankruptcy and debt settlement, check out our Bankruptcy blog, and Bankruptcy TV playlist on Youtube.