How late can I voluntarily stop my Chp 7?

[KeepHopeAlive]

How late in the process can I voluntarily stop my Chp 7?

Can I stop my Chp 7 WITHOUT pursuing another BK chapter, just because I've "changed my mind"?

I am starting to think Chp 7 may not be in the best interest for me...

I had my Meeting of Creditors, which was rescheduled for 1/23/2006. The trustee wants to try to see if she can take some of my biz assets. I am NOT interested in her dismantling my business.

I may take my chances with having personal judgments (i.e. credit card companies) against me as long as I can keep those judgments away from my business assets and business bank accounts.

[StaciMM]

I'm not 100% certain, but unless the trustee files a motion that you either need to convert or be dismissed, it is too late to get off the train.

The trustee is not going to give up a payday. You may be able to file a motion-I'm not sure-but if so I am pretty sure the trustee does not have to grant it.

[bkfiler]

"I had my Meeting of Creditors, which was rescheduled for 1/23/2006."

can you explain if you had the 341 yet or not?

first i would contact an attorney. its free. do several imo. see what they say. they know the trustee up close and personal.

second, if you havnt had the 341 yet, and you are sure you want to get it cancled. by not showing up they usually give you a few days and then cancel it. if you are lucky lol

but question now becomes, what does that do for your credit history now showing a BK that cant be taken off. also, the trustee can order you to show up and explain why you didnt show and if you tell them you want to cancel then show why you dont want to go through with it.

id seek professional cousnel, maybe someone better looking then me too.

[bkfiler]

in addition to what i said an attorney commented on it once before like this:

"It may be possible to dismiss a chapter 7 case, but it's difficult. If there are any assets the trustee is interested in, the trustee will almost certainly object to the dismissal and the case won't get dismissed. It is much easier to convert to a chapter 13 repayment plan than to voluntarily dismiss a chapter 7."

problem is that attorneys dont tell you how to skirt around the courts. i.e. dont show up for the 341 etc. its like messing with fire since they are attorneys sworn to uphold the courts and its principles.

[StaciMM]

FYI-if you do convert to a 13, its easy to get that dismissed... Skip payments...

[bkfiler]

well, maybe even easier then that. dont agree to a payment plan lol.

remember that any of this may cause you problems and you need to consult with legal counsel. there are reprocussions that you may not like and that we are not aware of.

[Printer099]

be careful

FYI-if you do convert to a 13, its easy to get that dismissed... Skip payments...

Bad advice! You do not have an automatic right to convert to a Chapter 13. You must convert to a 13 in good faith. When you file a Chapter 7 you have no disposable income, and when you convert to a 13 you have disposable income, so be ready to explain where the sudden income has come from. In addition purposefully converting to a 13, just to avoid a trustee liquidation, and then purposefully allowing your case to get dismissed is BAD FAITH. So taking the advice above is very dangerous. Which is why you should talk to an attorney.

[KeepHopeAlive]

Update and thanks for the responses

I really appreciate each and every response.


What I found out from my attorney: there is no specific provision in the law for the filer to dismiss their own case. As other have mentioned, the trustee can dismiss if the filer doesn't show, doesn't cooperate, etc. But since my trustee thinks I have some assets she can get to indirectly, then she will likely not allow my dismissal without a fight. (My attorney called another trustee who is not handling my case to find out how my trustee would respond).

I am feeling a bit "hoodwinked" with the whole chp 7 process, as it fits my unusual scenario. I'm having a bit of trouble with the concept that I VOLUNTARILY filed for PROTECTION from my creditors and, simultaneously, unwittingly, and IRREVERSABLY, signed over all rights to my business assets to the federal government. MOST legal actions you voluntarily file, can be dismissed by the filer, so chp 7 / BK seems to be an anomaly.

I fully understand that if I want "protection", then I have to abide by their rules... but what I don't understand is that when I later decide, after hearing the terms of the deal, that I DON'T want their protection, I can't back out of the deal... wait a minute, I've seen that before in movies and on TV... can you say "mafia" or "communist"?

[StaciMM]

The lesson learned is to research before making a life altering decision. I'm sorry you learned that the hard way, but unfortunately in life we often leap without looking and don't like the way things turn out as a result.

[JimH]

Really your atty should of caught this right from the start - before you filed.

[bkfiler]

Bad advice! You do not have an automatic right to convert to a Chapter 13. You must convert to a 13 in good faith. When you file a Chapter 7 you have no disposable income, and when you convert to a 13 you have disposable income, so be ready to explain where the sudden income has come from. In addition purposefully converting to a 13, just to avoid a trustee liquidation, and then purposefully allowing your case to get dismissed is BAD FAITH. So taking the advice above is very dangerous. Which is why you should talk to an attorney.

lol, its not bad advice at all. in fact it seems that it is the only option. its exaclty what the poster should do. the posters attorney needs to see if it can be done.

bad advice would be "site there and do nothing and see what happens to you"

there are plenty of ways to come up with additional income. many many ways. spend less then expected, get a second job, etc. let your attorney figure out how to handle this and consult with a few others.

also, "when you file a chap 7 you dont have disposible income" is incorrect. anything can be changed due to mistakes. it happens all the time and if the trustee finds additional income he will convert you. just because you fill a chap 7 doesnt mean you dont move over to a 13 to protect yourself. it happens all the time.

skipping payment because times get tough is common to. do you know how many chap 13 actually complete their payments? without wrangling around in court over and over. very few.

[JimH]

lol, its not bad advice at all.

I have to agree. You really don't have any other option if you can't voluntarily cancel and you still want to keep your property.

[Minnymouth]

A WORD OF CAUTION,

Deliberately changing from a Chapter 7 to a Chapter 13 to get your case dismissed can result in "fraud charges"!!!!! Especially if the Trustee decides that was your intent.....

So discuss your options with an attorney...... and take it from there......

A few years of Chapter 13 is a lot easier than a few years of "time".....

[Minnymouth]

The reason I said the above is because a girl I know tried this to hide assets she had and Trustee found out about it..... She is going to be serving "time" for her actions.... Judge agreed - "it was deliberate on her part, trying to hide assets to protect them".....

[Printer099]

lol, its not bad advice at all. in fact it seems that it is the only option. its exaclty what the poster should do. the posters attorney needs to see if it can be done.

bad advice would be "site there and do nothing and see what happens to you"

there are plenty of ways to come up with additional income. many many ways. spend less then expected, get a second job, etc. let your attorney figure out how to handle this and consult with a few others.

also, "when you file a chap 7 you dont have disposible income" is incorrect. anything can be changed due to mistakes. it happens all the time and if the trustee finds additional income he will convert you. just because you fill a chap 7 doesnt mean you dont move over to a 13 to protect yourself. it happens all the time.

skipping payment because times get tough is common to. do you know how many chap 13 actually complete their payments? without wrangling around in court over and over. very few.

Like I said you don't have an automatic right to convert to a 13. To all of a sudden want to convert to a 13 immeditely after a trustee finds assets is very suspicious. To come up with income so shortly that is sufficinet to fund a chapter 13 is suspicious. Sure it might be the poster's only option, but maybe the best option is to do nothing instead of risk bankruptcy fraud and imprisonment. It is possible to come up with additional income, but that still does not solve the problem of intentionally converting to a 13 to avoid liquidation.


I know that very few chapter 13's don't complete, but the original advice suggested to convert to a 13 and then skip payments intentionally to get the case dismissed. This is very different than in good faith attempting a Chapter 13 and then just failing because of tough time. You say skipping payments because times are tough is very common. But the advice originally said " convert to a 13 and then skip payments to get the case dismissed". To convert to a 13 with the intention of skipping payments intentionally is not in good faith and can also be seen as fraudulent.