How to Stop a Bankruptcy Procedure After It Starts
Bankruptcy is scary and life-changing. Filing for bankruptcy affects your credit report for years after it is discharged, throwing up a red flag to creditors. After some thought, you may determine that the decision to file was born out of pressure from your creditors. Fortunately, you can stop bankruptcy proceedings after they've started. For a Chapter 13 case, the process is surprisingly simple. You just need to file a motion with the court. For Chapter 7 cases, you can request a stop to the proceedings, but there is no guarantee that the court will approve the dismissal.
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Instructions
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Consult an attorney prior to requesting a halt to the proceedings. Ask him how this will affect your obligations to your creditors, your financial situation and your ability to file in the future. Make certain that you are pursuing the right course of action.
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Draft a letter to the court requesting dismissal of the bankruptcy. Clearly outline the reasons for the request.
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Submit the letter to your attorney for review. Make revisions if necessary.
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File a motion with the District Bankruptcy Court for voluntary dismissal of the bankruptcy proceedings. In a Chapter 7 case, you can't voluntarily dismiss the proceedings. The court has to rule on whether it will allow the dismissal.
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Tips & Warnings
Even if you successfully lobby to stop bankruptcy proceedings, you will still be liable for legal fees incurred up to that point.
