Have you changed your mind and now need to know how to stop bankruptcy proceedings? Hopefully you hired an attorney to help you with your bankruptcy filing and you have already called him or her to discuss your concerns. While you are on hold or waiting for the call back, here are a few things that you should consider:
Timing is Everything
If you have filed Chapter 13 bankruptcy, you do have the right to request a voluntary dismissal of the case. You may be liable for costs incurred by the courts, trustee or your attorney depending on how far in the process you want to stop. There is no voluntary dismissal available if you are filing Chapter 7 bankruptcy, so make sure you know what you are doing and have had all your questions answered before the paperwork is filed with the court.
I stopped my Chapter 13 Bankruptcy but I changed my mind again...
If you waited to request the dismissal of your bankruptcy case until after one or more of your creditors filed a Motion for Relief of Stay you will have to wait 180 days after the dismissal to file again.
If you did file for Chapter 13 Bankruptcy within a year of asking for your first case to be dismissed, the automatic stay against your creditors will only last for 30 days, unless the Judge agrees with your Motion to Extend Stay.
From the Other Side
When you file bankruptcy, the most likely outcome for your creditors is that some of them may never receive repayment of your debt and those that do will receive only a portion of it. There are situations where a creditor may object to having your obligation to them either greatly reduced or discharged without them receiving payment. Your creditors cannot necessarily stop your bankruptcy proceedings, but they can file a complaint which is a lawsuit called an "adversary proceeding" which is essentially an objection to having your debt to them included in a bankruptcy discharge plan.
Stop Bankruptcy Proceedings with Prevention
There is one more perspective to consider when looking at ways to stop bankruptcy proceedings and that is to prevent them from happening in the first place. Credit counseling and learning how to budget and change your lifestyle might prove painful, but life after bankruptcy is not so easy either.
Get Legal Help
If you have already filed and think you want to stop the proceeding, contact your bankruptcy attorney right away. If you filed without the help of an attorney, contact one even sooner than right away. Only a licensed attorney who specializes in bankruptcy can answer all your questions and help you pick the right course of action.