If you’ve filed for bankruptcy, but later get a better paying job or decide that it’s not the solution you thought it was, can you cancel it? Bankruptcy is a court process, and it does take time. During that time, your financial situation can change. Fortunately, in some cases, it is possible to cancel your bankruptcy by asking the court to dismiss it. In other cases, though, it may not be so simple.
Why Cancel the Bankruptcy?
Some people jump into bankruptcy too quickly. They see it as a way of avoiding losing their home to foreclosure or having their wages garnished. However, once they work things out, they may realize that they don’t really need to declare bankruptcy. Others may learn more about the process and its long-term effects and decide it’s not the ideal solution they thought it was.
Chapter 13 Bankruptcy
If you’ve filed Chapter 13 bankruptcy, you simply can’t withdraw your case. Instead, you have to go before your bankruptcy judge and ask that they dismiss your case. The court may determine that the bankruptcy needs to continue, and if they do, you do have to comply with that decision. It’s also important to note that even if the bankruptcy is dismissed, it will still appear on your credit report. You also need to understand what limits this puts on you. You won’t be able to file for bankruptcy again for 180 days.
Chapter 7 Bankruptcy
If you have filed for Chapter 7 bankruptcy, you also have to file a motion to dismiss. The trustee appointed for the creditors may object, and the judge will against have to decide whether or not to end the process. Chapter 7 may be a little more difficult to get out of because creditors often see it as their only chance to recoup some of the debt owed to them.
If you’re thinking about filing for bankruptcy, it’s important you work with an experienced attorney to understand all of the factors involved. Contact Michael F. Kanzer & Associates to schedule your consultation today.