Can I back out of bankruptcy?

[crazychristo]

I have paid my attorney fees and the creditor meeting has been set up. Can I change my mind or is it already too late?

[HHM]

If you have a creditors meeting already scheduled, that means you have filed BK. If you filed Chapter 7, for all intents and purposes, its too late. If you filed chapter 13, you can voluntarily dismiss the case.

However, what is the reason you want to back out?

[crazychristo]

We have about $64,000 in CC debt that the CC card companies are willing to write down to $9,000 and our lendor is willing to do a deed in lieu. Our income is high and our monthly BK about was set at $2500.

[expedite]

crazychristo, how long did you go without paying the ccards and which ones if you don't mind me asking, before they gave you this settlement? I am in a similar position with my cards too.

[JRScott]

Now on the deed in lieu you'd be off the hook on a deficiency balance.

However on the CC debt, it is very likely they'd mail you a 1099 for the forgiven 55000 dollars, which you would then be responsible to pay income taxes on next year when you file.

It sounds like you are in a chapter 13 though and as HHM said if that is the case you can voluntarily withdraw, you can't voluntarily withdraw from a chapter 7.

[kornellred]

Your attorney will definitely NOT refund your money.

[sandybraun]

Yes it's really true and i agree "Your attorney will definitely NOT refund your money"!

[ready2puke]

I didnt read any where that the OP even asked that question lol....I think he/she just wants out of the BK...lucky soul.

[kornellred]

Anybody can back out of a Chapter 13. Just ignore it and it will go away. If you don't show up at the 341, the case is automatically dismissed. If you decide you don't want any of it before confirmation, don't make any payments to the trustee and it will be dismissed. If you are confirmed and making payments and decide to stop, the case will be dismissed.

In any cae, you have wasted your money, because like I already said - your attorney ain't giving you a refund.

[crazychristo]

I know I wont get a refund and I don't really care. Blowing the $3,000 for an attorney was foolish but before I filed the CC companies were not willing to even discuss a settlement. My BoA card has been the easiest to deal with. AmEx was next, and I am still working with Citi. I guess the idea of getting something rather than nothing is appealing. Surely a settlement and deed in leiu will not negatively impact me as long as the BK would. The other aspect is that when it is all said and done I will be looking at a much smaller payment than I would be with the BK.

[HHM]

Keep in mind, if you go the settlement route, there will be tax consequences. The amount of forgiven debt is treated as income and could significantly increase your tax burden. However, there are no tax consequences if you remain in the BK.

I am a little concerned here because the creditors should not be talking to you at all because of the automatic stay in BK. I have a feeling there is something your not telling us. If it were me, and since you already filed, the damage is already done regarding the bK so you might as well finish. Also, those settlement deals may mysteriously vaporize once your BK is dismissed and you are ready to make the payment on the settlement.

If it sounds to good to be true, it probably is, and your scenario sounds to good to be true.

Just my 2 cents.