Cancelling a Chapter 7 after filing

[Okira]

Can this be done? We filed and have our meeting of creditors at the end of August. Something has changed and we can now pay a good portion of our bills at the end of the year. Can our filing be dismissed? I know Chapter 13 can be, but I don't know about 7. Thanks!

[HHM]

Nope. There is no right to voluntarily dismiss a chapter 7. Also, even if you could, it wouldn't do you any good, you still "filed." Since you have already had your meeting, the case is 95% done. Might as well get your discharge.

Also, put some thought into this...why WASTE whatever money you are getting at this point to pay back creditors, use it to BUILD your financial future.

[angles]

good advice HHM.

[frogger]

It's too late baby, it's too late........

[sassiebaz]

Why would you want to?

[Okira]

Well, I want to because if we get the money that we are anticipating I would prefer paying off my creditors to filing bankruptcy. Thanks for your input, everyone. It kind of boggles my mind that you can't back out after filing and before the meeting of creditors. What doesn't make sense is that if we don't show up to the meeting, or if we are late or don't make a payment to the trustee, the bk can then be cancelled. I don't get it!

[DebtHater]

What doesn't make sense is that if we don't show up to the meeting, or if we are late or don't make a payment to the trustee, the bk can then be cancelled.

This BK doesn't get canceled in the literal sense. What happens is the case is dismissed and debt will not be discharged. However, it will stay on record that you filed.

It is my understanding that you can't just cancel the BK is because people used to abuse the system. Lets say one filed today. Tomorrow the individual gets into a car accident and anticipates a lawsuit. That person would then cancel the BK and file again once the lawsuit hits.

[Okira]

So what are the repercussions of doing this? If the bk is dismissed, but stays on our record, and if we pay the creditors, how does this affect our future credit score? Thanks for all your help!

[biotechsolution]

It would be essentially the same has filing the bk without the discharge.
Once your current creditors get the notice of bk they will cancel and close your accounts anyway.

[DebtHater]

It would be essentially the same has filing the bk without the discharge.
Once your current creditors get the notice of bk they will cancel and close your accounts anyway.

Just to add on to that, it's not just the creditors that you owe money to (those accounts are automatically closed by filing against them). The other creditors will find out when they do their monthly checkup on your credit report. Once they see that you've filed, they are more than likely to close the accounts regardless of the outcome.

Even though you have good intentions I would just let your case take its course and make the best of it.

[HHM]

Bottom line to all the advice here.

There are no Brownie points for trying to pay your creditors?

Let your case run its course and put whatever money you have coming in to better use for you and your family. Focus on what is important, paying your credit cards is not important.

[HOMEBODY]

I felt the same way you did for a long time. Now, my life is less stressful..Dont have to worry about who I have to pay today or how much extra they will charge me in interest each month. Now I am earning more money and I am putting it in my safe box for now..when I get enough I will buy a CD and make money off the bank. I also want to invest in my retirement so I am starting a $2,000 a month savings for my retirement. I couldnt do that before. I can now buy things in cash and keep a budget.

The feeling will pass and you will be glad...there is nothing to win by paying at this point, but a lot to lose like your hard earned money.

[Okira]

I felt the same way you did for a long time. Now, my life is less stressful..Dont have to worry about who I have to pay today or how much extra they will charge me in interest each month. Now I am earning more money and I am putting it in my safe box for now..when I get enough I will buy a CD and make money off the bank. I also want to invest in my retirement so I am starting a $2,000 a month savings for my retirement. I couldnt do that before. I can now buy things in cash and keep a budget.

The feeling will pass and you will be glad...there is nothing to win by paying at this point, but a lot to lose like your hard earned money.

Thanks. I really needed to read this today. I can't believe how stressful this is! Even though the creditors aren't calling anymore, the guilt/shame I'm feeling is strange. Like you said, this too shall pass

[tcreegan]

feelings

Hello Okira, Hello all,

I have seen several posts about having a feeling of guilt about not paying bills. Perhaps it is a holdover from days when creditors were local hometown folks and deals were made with a handshake.....

Anyhow, I think about the companies today.....no regard for anyone, obscene amounts of executive compensation, preying on the poor, outsourcing customer service to India, and the list goes on. I have no problems stiffing companies like this.

A local doctor who has always treated us well. I included him in the bankruptcy so he can claim the loss, but we will probably pay him off after the case closes.

Bottom line: BK is a financial decision. It is not about character and virtue. It is numbers on papers, what is the best route for you in the long-term.
I think your character comes through with how you change your life after a bankruptcy.


Just some thoughts,

Tom in Colo

[Okira]

Very true, Tom!