Can you back out of a Chapter 13...

[TheDouble]

Let's say that the whole reason you file is to get a chapter 7 but it all goes bad and the trustee wants to put the screws to you and push you into a 13. I am wondering if it is possible to just drop the whole thing because you don't like their plan?

If you were to drop it and try to file again later - would they be harder on you?

Thanks in advance

[lrprn]

Let's say that the whole reason you file is to get a chapter 7 but it all goes bad and the trustee wants to put the screws to you and push you into a 13. I am wondering if it is possible to just drop the whole thing because you don't like their plan?

In order to successfully argue against dismissal or conversion of your case to Chapter 13, you must demonstrate special circumstances that justify additional expenses or adjustments of current monthly income. And even if your income falls below the state median, the court may still dismiss your case for abuse.

Also since in the situation you describe you did file for Ch 7, you can't "just drop the whole thing" and walk away. If you don't convert to a 13 or prove special circumstances, the Ch 7 bankruptcy will remain on your credit report and will show the bk was dismissed. Not a good thing, and your creditors will come roaring back with a vengeance as well....definitely NOT a good thing.

If you were to drop it and try to file again later - would they be harder on you?

When you can file again depends on the circumstances that caused your first case to be dismissed. Some cases can be dismissed 'with prejudice' which means you can't file again. If your case is dismissed 'without prejudice', then you can normally refile immediately unless the bk court has a practice that doesn't allow immediate re-filing, or unless the circumstances don't allow you to refile. Sometimes, if the bk court feels that you acted in bad faith or for some other reason, the court can bar you from refiling for some period of time. Once a motion for relief is filed by a creditor, if you voluntarily dismiss your own case, then you are automatically barred from filing a new case for 180 days. (See http://wiki.answers.com/Q/After_bein...ediately_after and http://www.dallas-bankruptcy.com/7bankruptcy.htm)

[aa06a47]

You can always back out of a chapter 13, as it is a voluntary reorganization. Chapter 7's are a little tougher to back out of once filed. As LRPRN said, the creditors will be standing at your door with there hands out once you do and you will have to wait 6 months to file again. I understand they are tougher on people who have filed before.

The way your question was phrased, I'm assuming your planning on filing a chapter 7, but if you get pushed into a chapter 13 you don't really want it. I can understand why you wouldn't want it, believe me, but before you risk a dismissal you need to look at the payments and determine if life is better before / after.

Right now, I don't believe there is any bk law being proposed that changes any of the means test requirements. If you want to withdrawal just to try 6 months later for a chapter 7, you would still face the same income criteria. If there has been a change in income now and you need to wait till you file, you can definatly do that.

[HangingOn]

Also since in the situation you describe you did file for Ch 7, you can't "just drop the whole thing" and walk away. If you don't convert to a 13 or prove special circumstances, the Ch 7 bankruptcy will remain on your credit report and will show the bk was dismissed. Not a good thing, and your creditors will come roaring back with a vengeance as well....definitely NOT a good thing.


What can the creditors do when they come roaring back with a vengeance? If the BK is dismissed, what specifically happens? Do they sue you? Raise interest rates? Foreclose on your home??

[HHM]

Unfortunately, as others have pointed out, you can't "just drop it" (unless the trustee is willing to consent). Moreover, if you first file chapter 7, and are pushed into a chapter 13, they won't let you voluntarily dismiss your case. (by contrast, if you filed Chapter 13 in the first place, then you can voluntarily dismiss a 13). You cannot voluntarily dismiss converted chapter 13's

As for refiling and what happens next, that depends...

In general, you have to wait 6 months before you can refile, and when you do refile, you have to schedule a hearing to prove to the court that your refiling is not an abuse of the system.

As for what creditors will do, yes, they can sue you, foreclose on your home, repo your car, etc. They will be able to enforce their legal rights to the full extent of the law if they so choose.

[$$only4ever]

We originally filed as a chapter 7, but had to go to a chapter 13. You don't get a choice when this happens. If the trustee wants it to be a chapter 13, then it is a chapter 13 or dismissal. Why don't you see what is going to happen before you look at dismissal? Good luck.