Can You Withdraw or Dismiss A Bankruptcy After It is Filed?

Once you file for bankruptcy, you may not be able to take it back. Whether or not you can withdraw your bankruptcy depends on the type of bankruptcy you filed and the circumstances of your case.

If your Chapter 13 case has not been converted from another bankruptcy chapter, you have the right to request voluntary dismissal at any time. Source: 11 U.S.C. § 1307(b). But in Chapter 7, you can only have your case dismissed for a few good reasons. Your dismissal depends on a few things, including whether you have nonexempt assets, if dismissal will prejudice your creditors, your reasons for wanting a dismissal, and the policies in your jurisdiction.

The debtor must attend the meeting of creditors and provide required financial documents. Failure to comply may lead to dismissal, but it does not guarantee that a Chapter 7 case will be dismissed. The trustee may continue administering nonexempt assets while the case remains pending, subject to applicable law and court orders. Sources: 11 U.S.C. § 343; 11 U.S.C. § 521(a), (e)(2), (i); 11 U.S.C. § 707(a); 11 U.S.C. § 704(a)(1).

If there is no way to dismiss your Chapter 7 case, you may be able to convert it to a Chapter 13 case, if you qualify. In Chapter 13, you make payments under a court-approved plan and may receive a discharge of eligible debts after completing the plan and satisfying other statutory requirements. Sources: 11 U.S.C. § 706(a), (d); 11 U.S.C. § 1328(a), (f), (g).

If your Chapter 7 case is dismissed without prejudice, you may be able to file again, but immediate refiling is not guaranteed. Eligibility rules, the dismissal order and any applicable 180-day bar under 11 U.S.C. § 109(g) must be reviewed.

For an individual filing a new Chapter 7, 11 or 13 case, one prior case pending within the previous year and dismissed can cause the automatic stay to end as to the debtor on day 30 of the new case. Extending the stay requires a motion, notice and a hearing completed before that 30-day period expires, together with the required showing of good faith. If two or more prior cases were pending within the previous year and dismissed, the stay generally does not arise; a request to impose a stay must be made within 30 days after filing and requires a court order and a showing of good faith. Statutory exceptions apply. The one-year lookback is not 180 days from the first case’s filing date. Sources: 11 U.S.C. § 349(a); 11 U.S.C. § 109(g); 11 U.S.C. § 362(c)(3)–(4).

Over the past 34 years, the Law Offices of Christopher A. Benson has helped over 2,300 of Washington clients take control of their financial situation. We can review whether bankruptcy may help stop your garnishment and address your debts through a repayment plan. Sources: 11 U.S.C. § 362(a)–(d); U.S. Courts: Chapter 13 bankruptcy. If money has already been garnished, recovery may be possible in some cases, depending on the timing of the transfers, applicable exemptions and other legal requirements. A refund is not automatic or guaranteed. Sources: 11 U.S.C. § 547(b)–(c), (e)–(g); 11 U.S.C. § 522(g)–(i); 11 U.S.C. § 550(a). But you have to act quickly–call (253) 815-6940 for your free consultation, or email us today. Evening and weekend appointments available.