Can I Cancel or Dismiss My Chapter 7 Bankruptcy?
Sometimes after filing people realize they do not wish to proceed with Chapter 7 bankruptcy and would like their case dismissed. You may wondering why would anyone want their Chapter 7 bankruptcy dismissed? There are a variety of reasons as to why debtors want their case dismissed, often times due to a change in circumstances that no longer make bankruptcy the most favorable path. One example is if a debtor received an inheritance after filing and did not want to turn it over to the bankruptcy trustee.
Once your Chapter 7 bankruptcy is filed it can be difficult to have it dismissed. Upon filing Chapter 7 bankruptcy your assets become property of the bankruptcy estate. You may voluntarily ask the court to dismiss your case, but if the reason for dismissal is to protect against losing a valuable asset, the court is unlikely to grant a dismissal. On the other hand, if you do not have any valuable non-exempt assets, you most likely will not face opposition from the trustee or creditors, and your Chapter 7 bankruptcy will be dismissed.
Outside of seeking voluntary dismissal from the court, your case will be dismissed for the following reasons. First, if you have not paid the court filing fee your case will eventually be dismissed. Second, if you do not file the necessary bankruptcy documents within the court deadlines your case will be dismissed. You have seven days to file the list of creditors and credit counseling certificate, and fourteen days to submit the remaining schedules and statements. A third way your case will be dismissed is if you fail to attend the scheduled 341 meeting of creditors. Finally, your case will be dismissed if you do not complete the financial management course within 60 days of your meeting of creditors. Although the court will have little choice but to dismiss your case for the foregoing reasons, depending upon why your case was dismissed, you may have to wait a substantial amount of time before you can refile. Therefore, you should consult with an experienced Phoenix bankruptcy lawyer before you attempt to have your Chapter 7 bankruptcy dismissed.