Has anyone backed out of a Ch. 7?

[Help!]

If you've filed for Ch. 7 and then changed your mind, please share your story/advice. We filed without knowing what a battle it would be because we are above the median income and we've realized that there were alternatives we could have tried to get out of our mortgage. We are asking for a dismissal and wondering if this is going to be a battle also.

[laurannm]

From what I have read it is very difficult to voluntarily dismiss a Ch 7 filing. You'll have to present your case to a judge, and it will remain on your credit for 10 years regardless.


Sorry to hear about your experience with all of this. Can you share your details with us? his doesn't seem to be the norm, even with above-median debtors, at least from most of the people on these boards.

What types of expenses did you have to provide extra documentation for (especially on your means test)? The means test uses mostly IRS Standards based on family size in your area so I am surprised you had to justify them (unless you listed additional expenses above and beyond the standards?)

How far above the median were you?

How many people are in your family?

Did the trustee already try to push you into a Ch 13? I remember you had a continuance, but from I have read this is not necessarily a bad thing and is common.

I am above-median by about $7k so I am curious about why they would grill you on that stuff

[southernbelle]

I agree with laurannm. The bk will still remain on your credit report if you are able to dismiss it. Did your atty address the issue of your income before filing? Sounds like h/she dropped the ball.

Some Trustee's (from what I hear) are absolute horrible people. Sounds like you had the misfortune of getting one of them. I hope everything else goes better for you. This doesn't seem like the norm.

[Minnymouth]

Its hard to get a bankruptcy dismissed just because you WANT IT DISMISSED. Once your file, then your financial obligations become under the control of the Trustee until your bankruptcy is over and closed.

Should you get it dismissed it will still stay on your record for 7-10 years. So you are not accomplishing anything by getting it dismissed.

The court determines whether you will be able to file Chapter 7 or will be forced into a Chapter 13 based on your exemptions and income. If there are funds available after your normal expenses are met then the Trustee will take these "extra funds" and a percentage of it will be paid back to your creditors. Some folks will fall in this catagory.......

Crying, feeling worthless, and being depressed are signs of going thru bankruptcy. Sometimes you need medications to help you get thru the bankruptcy process. All these symptons are normal but some people it really gets out of hand on and they need meds to calm them down.

Remember, this is a business decision...... to better your life and the lives of your loved ones. When you look at it this way..... it looks entirely different.

Take things in stride, don't let it get too you, just take one day at a time.

Eventually all this will pass, you'll look back and be glad you made the decision to help get your life back to normal and your finances on track again.

Feel free to vent....................

[Help!]

Minnymouth - I truly appreciate your comments. It was my understanding that a 7 cannot be converted to a 13 without the 7 being dismissed and the debtor voluntarily filing 13 after that. Is that not the case? If we bring those accounts current, wouldn't that make an involuntary 13 impossible?

The exact words of my attorney... "I can have this dismissed in a week". Am I being totally misled??

[Minnymouth]

Yes, your attorney can have it dismissed in a week, by NOT SHOWING UP for the 341 meeting, etc. Trustee will automatically dismiss. Incorrect information will cause dismissal unless its corrected.

You can file for a dismissal, BUT that does not mean the Trustee is going to let it go thru. If the Trustee sees assets, or possible extra income to pay your creditors, THEN you could be forced into a Chapter 13 payment plan using the extra income over and above your expenses.

Unless your attorney KNOWS something I don't know (which is quite possible), but most people CANNOT just "backout of a bankruptcy" because they change their mind. They have to have a justified reason, have it dismissed by the Trustee for one reason or another, etc.

If it is dismissed, then you will be right back where you started with no option to file a Chapter 7 again for quite a while and you will still owe all your creditors just like before.

Maybe some of the other Mods can also give some "input" into this thread. Some are much more knowledgable than I am. Many have started out Chapter 7 and been converted to a Chapter 13.

I was a Chapter 7, and was not allowed to have my case dismissed...... Lord knows I sure tried when they told me they were going to seize and sell my house............... But there was no dismissal, and my house was seized and sold by the courts........

I too, had an attorney and a Trustee THAT SUCKED.................. my attorney was a COMPLETE WASTE................

Keep us posted..................

[keepmine]

Minny is correct. If there are assets involved, the trustee does not have to allow it to be dismissed.

[Help!]

But if you don't meet the means test, how can they do anything but dismiss it?

[keepmine]

But if you don't meet the means test, how can they do anything but dismiss it?

Once you file bk, the trustee is driving the bus. All assets above the exemption amount become part of the bk estate and if it's worth the trustees time, he can claim them and sell them to pay your creditors.

[Help!]

But if I bring the accounts current right away, how can he possibly do that? I really wish I had known how many rights I was giving up the day we filed!!

[biotechsolution]

If you filed your chapter 7 has a 'no-asset' case you shouldn't have a problem dismissing it. The court will usually object to dismissing a chapter 7 when it is an asset case and your creditors will be harmed by the dismissal. You won't be able to file another chapter 7 for 6 months however.

You can't be forced into a chapter 13 for failing the means tests. You attorney is right.

[deafbroke]

The means test is just ot determine whether you can file chapter 7 or 13. Once you file if you have assets that are not exempted the trustee WILL go after them. I would think you attorney can get your case dismissed easily but that doesn't erase the bankruptcy filing from your credit. Talk to your attorney about getting your case dismissed and be sure they cover all the pros and cons of it before deciding.

I will state from experience, debt consolidtation and debt resolution DO NOT WORK. It's all dependant on ALL the creditors going along with it and it takes only one creditor to screw it all up. Been there, done that.

DB

[Yankeegirl]

Do you know your trustee's opinion on the dismissal?

We recently had our Chapter 7 voluntarily dismissed WITHOUT prejudice. (This means that there is no waiting period on refiling, if we should decide to refile.) For us, it was very easy, since it was the UST's suggestion. We each (UST and our attorney) signed a motion to dismiss. It was presented to the judge who signed it within days. No muss, no fuss.

While dismissing is not always the best option, after consulting with our attorney, we felt it was our best option. We filed Chapter 7 15 months ago. We disputed some legal issues that required a judge to issue an opinion. Since the whole process took so long, our circumstances changed dramatically in the intervening time (salary increased $30K). We were going to need to file new schedules to continue our "fight" and at that point knew that we weren't going to get a discharge under chapter 7. So the UST actually suggested we dismiss and then try to buy a house (not sure how that was supposed to happen) and a new car and then refile!

So we dimissed and now are just waiting to see what happens in terms of collections. We are going to wait a while, buy 2 new cars, and then possibly refile a Chapter 13.

So far, so good.

The other posters are correct, the filing will remain on your credit report for 10 years even though you didn't get a discharge!

[HHM]

To get a voluntary dismissal, either the trustee must be amenable to it (i.e. doesn't really care, which is not likely), or you have to demonstrate that dismissal is in the best interests of the creditors. (or at least not detrimental to your creditors).

The other option, as has been pointed out, is to simply not comply...not show-up to the 341, etc.

Unless something has drastically changed, it can be very difficult to get a case dismissed. Most people are usually better off simply pressing on to the end of the BK.

[Help!]

I am not sure of the trustee's opinion, but it was pretty clear at our hearing that the UST did not feel we met the means test. My sense is that they were leaning toward dismissing it anyway and our motion for dismissal will be signed quickly. There is no reason for us to press on and we should not have filed Ch. 7 in the first place. Thanks for the replies...