Can I Change My Mind After I File Bankruptcy And Dismiss My Case?

Coming to the decision to file bankruptcy is not easy. For some people, once the decision is made there can be emotions similar to “buyer’s remorse”. Perhaps you prefer to do the best you can with your debts so your lenders will still negotiate with you or offer a new loan in the future. Or maybe your financial picture took a turn for the better not long after you filed bankruptcy and you prefer to pay off what you can and keep the notation of bankruptcy off of your credit report. Whatever your reasons are for changing your mind and deciding bankruptcy is not for you, it is important to know your options.

If you change your mind after you file and want to have your case dismissed, you might have to ask for Court permission, or your case may be one that can be dismissed of your own voluntary act. Whichever type of case you have, keep the following things in mind when thinking about dismissing a bankruptcy:

•         The automatic stay that prevented creditors from contacting you is no longer in place, so any collection actions that were pending against you when you filed bankruptcy can now be resumed.

•         Dismissal is not the same as discharge, so you will still owe the debts you had prior to filing your case.

•         If there was an adversary proceeding filed against you during your case, dismissing your case is not an automatic dismissal of the adversary. An adversary is like a lawsuit within the bankruptcy case, and sometimes lenders initiate these proceedings after you file bankruptcy because they believe there was some wrongful action taken with respect to their loan. Dismissing your case does not resolve the allegations contained in an adversary and you may still be required to defend that action.

Before dismissing a bankruptcy, talk it over with a qualified bankruptcy attorney. There can be benefits to dismissal, but there can also be consequences. It is critical to understand the impact dismissal will have, before you take that action. We are knowledgeable in all aspects of bankruptcy litigation and can help you to learn the things you need to know to make an informed decision.

For more information bankruptcy and what you can do if you change your mind after you file, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.