Question Cancelling a Ch7 Bk.

[hotmama]

If the proceedures are cancelled meaning the debtor does not want to follow through the bk and a voluntary petition to have it dismiss has been filed - will a bk file still show on the cr report?
The voluntary petition to dismiss ws filed b4 the 341 meeting.

[justbroke]

Good luck with actually getting a Chapter 7 case voluntarily dismissed! Once you file Chapter 7... they take on a life of their own! The Trustee, if there are assets to be distributed will certainly object to the dismissal.

Even if you are successful in getting it dismissed (unlikely), the BK will continue to report/show on your credit report for 10 years.

If you have non-exempt assets.. don't be shocked if your case doesn't get dismissed but is continued to be administered.

[hotmama]

there are no assets to distribute. Can it be fought with the credit bureaus??

[justbroke]

there are no assets to distribute. Can it be fought with the credit bureaus??

It cannot be fought, as it is a true representation that you filed. If it was an involuntary petition that was filed maliciously, you may have a defense and a reason to have it removed. However, a voluntary petition is... well... voluntary, so you take your licks.

[hotmama]

So if it is dismissed because the rest of the documents were not submitted - still is bad!!! cz it will show a person did not qualified for the bk right so either way is a negative!!!

[justbroke]

Then they never should have filed in the first place. This is one of the most significant things that even many Bankruptcy Courts warn debtors about filing and the impact on credit. Most attorneys would warn debtors as well, and is why they review the case before filing.

As a public service message, I'll repeat it here. Never file Bankruptcy unless you understand the impacts on your credit and your ability to file future Bankruptcies.

[HHM]

1. There is no right to voluntarily dismiss a chapter 7. You need "cause"
2. There are things you can do, or more accurately not do, in order to have the case dismissed (not show up to trustee meeting, don't supply docs etc).

BUT...

The filing of the BK is the fact that gets reported on the credit report. The discharge is what actually gives you the benefit on your credit report (by zeroing out balances etc).

If there are no assets, then there really is no reason NOT to see the case through. Most people who want to dismiss find out too late that they have non-exempt assets or other issues (preferential transfers), but if you have only exempt assets, and no other issues, you might as well see the case through, get your discharge, and unload the debt.