Can I Dismiss My Chapter 7 Bankruptcy Case?
The short answer is that there is no absolute right to voluntarily dismiss your Chapter 7 bankruptcy case. However, you may have certain rights that will allow you to attempt to dismiss your case. Learn more about why a debtor would want to dismiss their bankruptcy case, and what options they may have.
Why You Can’t Simply Dismiss a Chapter 7 Bankruptcy Case
When you make the decision to file for Chapter 7 bankruptcy under federal law, you give up certain protections which include the chance to voluntarily dismiss your case. A lot of benefits are afforded to debtors who make the decision to file for chapter 7 bankruptcy, and therefore legislators have decided that in exchange for this protection, debtors are not allowed to capriciously dismiss a bankruptcy case in which they were granted financial protections.
Options for Debtors That Wish To Dismiss Their Chapter 7 Bankruptcy
However, while there is no absolute right to voluntarily dismiss a Chapter 7 bankruptcy case, debtors will always have the legal right to file a Motion to Dismiss their bankruptcy case. It is important to note that there is no guarantee that the court will grant this motion to the debtor. Additionally, full notice must be given to all creditors, and a hearing must occur regarding this motion. A debtor must show that substantial cause exists for them to now dismiss their Chapter 7 bankruptcy case. Many creditors will not look favorably upon a motion to dismiss a Chapter 7 bankruptcy case. In truth, many debtors should not expect that their Chapter 7 bankruptcy case will automatically be dismissed once they file for a dismissal.
Chapter 13 Bankruptcy Case Dismissals
As an additional note, a debtor does have a legal right to voluntarily dismiss a Chapter 13 bankruptcy case, unless there is proof of any fraud or conversion from another chapter of bankruptcy. This means that if you filed a Chapter 13 bankruptcy, and you simply cannot afford to make the payments in the reorganization plan, then you have a legal right to voluntarily dismiss that bankruptcy case, and file for a Chapter 7 bankruptcy case. Again, it is important to note that this is only available to those debtors that are not accused of any fraudulent acts including the failure to disclose assets, or misrepresenting your assets on any bankruptcy paperwork. If it is proven that a debtor has committed fraud in any way, they will not be able to voluntarily dismiss your Chapter 13 bankruptcy case.
Let Us Help You Today
If you have filed for bankruptcy, and are now considering dismissing your case, consider visiting with an experienced bankruptcy West Palm Beach bankruptcy attorney at Kelley Fulton Kaplan & Eller at 561-264-6850 today for a consultation. We can examine your specific facts and circumstances, and help you determine whether or not you have the legal right to have your bankruptcy case dismissed.