How to Cancel a Bankruptcy

You or your lawyer will have to attend a court hearing to cancel a bankruptcy.

Filing for bankruptcy is one way a debtor can get relief from creditors by stopping collection proceedings. However, it is possible to file bankruptcy and realize that bankruptcy is not the only option available to you. If you are someone who has filed for bankruptcy relief and you wish to stop the bankruptcy proceedings, it is possible to cancel the bankruptcy case. Canceling a bankruptcy case does have possible repercussions, though, including negative credit impact and a possible delay in refiling a bankruptcy case.

Instructions

1. Contact a bankruptcy attorney regarding your situation and discuss your reasons for wanting to cancel the bankruptcy case. A bankruptcy attorney will be able to advise you regarding any possible penalties and alternative options (amending a bankruptcy petition, etc.). If the bankruptcy petition was filed without the assistance of an attorney, be sure to bring copies of the filed petition to your consultation to help your attorney gain a better understanding of your situation and bankruptcy case.

2. Prepare a motion to dismiss. Either you or your attorney may obtain a copy of the appropriate motion form from the bankruptcy court. The motion form should contain the information regarding your case, such as the case number. The motion must also explain your reason for seeking a dismissal, making the court aware of all factors involved in your decision and the request.

3. File a copy of the completed motion to dismiss with the bankruptcy courts clerk. Once the motion is filed, provide the bankruptcy trustee overseeing your case with a copy of the motion to dismiss. Also, send a copy of the motion to dismiss to all creditors listed in the original bankruptcy petition.

4. Attend the hearing scheduled by the court. The clerk of the court will notify you, your attorney and all creditors of the hearing date once it is put on the bankruptcy court docket. A bankruptcy case cannot be canceled at your request unless the hearing is attended by you or your attorney. If the court and the creditors do not object to the motion to dismiss, the case will be canceled at the hearing. If objections are raised during the hearing, the court will decide whether the objections are sound and comply with the rules set forth in the Bankruptcy Act of 2005. The court may choose to continue the bankruptcy case if it is believed that there is reason to object to your motion to dismiss.

References

• U.S. Courts: Consolidated and Reconciled Federal Rules of Bankruptcy Procedure, with 2009 Amendments
• Cornell University Law School: Federal Rules of Bankruptcy Procedure