Cancelling a Chapter 7 Case After its Filed with the Court

Understanding Chapter 7 Bankruptcy

Bankruptcy is a legal process that allows individuals or businesses struggling with debt to find some relief and work towards a fresh financial start. Chapter 7, also known as ‘liquidation bankruptcy’, is one of the most common types. In this form of bankruptcy, some of your assets may be sold to pay off your debts. Once the process is complete, many of your remaining debts could be discharged.

Why You Might Want to Cancel a Chapter 7 Case

There could be various reasons why someone might want to cancel their Chapter 7 bankruptcy after it’s been filed. Perhaps your financial situation has improved, allowing you to handle your debts without bankruptcy. Or you might have discovered that some of your assets, which you thought would be exempt, are actually at risk of being sold. Whatever the reason, it’s crucial to understand how to go about cancelling a Chapter 7 case.

Can You Cancel a Chapter 7 Case?

Yes, it is possible to cancel a Chapter 7 bankruptcy case after it’s been filed. This is typically done by filing a motion to dismiss the case. However, it is important to note that the court does not have to grant your request. The decision will ultimately be up to the bankruptcy judge assigned to your case.

How to Cancel a Chapter 7 Case

To cancel a Chapter 7 bankruptcy, you must first file a motion to dismiss with the court. This motion should clearly state your reasons for wanting to cancel the case. Once the motion has been filed, a hearing will be scheduled. You will need to attend this hearing and present your case to the judge. The judge will then make a decision based on the information presented.

Implications of Cancelling a Chapter 7 Case

Cancelling a Chapter 7 bankruptcy case is a serious decision that should not be taken lightly. If your motion to dismiss is granted, you will lose the protection of the bankruptcy court. This means that creditors can once again start collecting on your debts. Therefore, it’s essential to thoroughly consider your decision and discuss it with a competent attorney before proceeding.

Get Legal Advice

If you are considering cancelling a Chapter 7 bankruptcy case, it’s important to seek legal advice with a chapter 7 bankruptcy lawyer. The Liviakis Law Firm can help. Our attorneys have extensive experience with bankruptcy law and can guide you through the process. Call us today at 916 459 2364 for a consultation.