Bankruptcy is a valid option for those in a financial crisis and can be a life-altering solution. Still, the bankruptcy process is not always as straightforward as one might think, and the journey can be challenging. Sometimes people who rushed into bankruptcy begin to regret their decision – and may wonder if they can cancel a bankruptcy if they change their mind. In this article, we will discuss the ramifications of that decision.
Many people have filed for bankruptcy and subsequently considered canceling the process. Some individuals cancel a bankruptcy because they have changed their minds, while others experience a change in their financial status. No matter your reasons, it is essential to consider the impact on your overall financial stability and credit.
Canceling a bankruptcy in progress can be done, but the decision needs to be carefully thought out. Here is the information you need to know.
Consult With Your Attorney
We are writing this article under the assumption that you filed for bankruptcy with the guidance of a professional bankruptcy attorney, as legal processes can be complex. You should already be in ongoing communication with them. Should you decide to back out of the bankruptcy, your attorney should be the first person you call. In fact, during the bankruptcy process, every action, call, or discussion should be through your attorney.
Your attorney will discuss your situation with you and listen to your concerns and reasoning. They will outline the pros and cons of canceling bankruptcy and advise you on the best course of action for your specific circumstances.
If you still wish to cancel your bankruptcy, you will file a motion to dismiss with the court. A motion to dismiss is a legal document requesting your cancellation through the court. The motion will be filed with the same court and jurisdiction where the bankruptcy was initially filed. If the court accepts the motion, the bankruptcy case will be closed.
However, before taking any action in this regard, you should understand the ramifications and consequences of cancellation. The most important thing to understand is that canceling a bankruptcy process will revert your debt to before you filed your bankruptcy. Any discharged debts, such as credit card debt, medical bills, or personal loans, will be reinstated if you decide to cancel the bankruptcy – you will once again be responsible for those payments.
Work with a Bankruptcy Attorney (Whatever You Decide)
Canceling your bankruptcy should not be taken lightly. Hiring a bankruptcy attorney is essential when you decide to file for bankruptcy and continues to be vital should you choose to terminate the process. Filing a motion to dismiss should only be done after you have all the information you need and understand the potential consequences if you choose to go down this road. Your attorney will help you to assess the pros and cons of your decision, including the possible impact on your budget, financial stability, and credit status.
Remember: Any debts discharged or eliminated up to that point in the bankruptcy will likely be reinstated and require repayment.
Richard V. Ellis Can Help
Richard Ellis is a Sarasota bankruptcy attorney who has helped hundreds of residents to make the right decisions about their financial future. What is right for one person may not be suitable for another- call our offices today and schedule a consultation to discuss your options.
