Filing for bankruptcy in New York is a major decision that shouldn’t be taken lightly. If you are considering this option, it’s crucial to consult with an experienced New City Bankruptcy Attorney. As your case unfolds, you might reconsider your decision to file/ If you find yourself wondering if it’s possible to stop bankruptcy proceedings and revert to your re-filing state, please continue reading as we explore your legal options and whether halting bankruptcy proceedings is feasible.
How Can I Stop My Bankruptcy Case?
While you can stop the bankruptcy process once you’ve started it, it’s crucial to understand that it’s not a simple matter of changing your mind and withdrawing your petition. Filing for bankruptcy has significant implications, and once initiated, it follows specific procedures. Essentially, you cannot stop the case and undo everything that has occurred.
To halt a bankruptcy case, you will need to file a motion to dismiss your case with the court. This motion will outline the reasons for seeking the dismissal and demonstrate that the dismissal is in the best interests of the creditors and the debtors. The court will then review the motion and decide whether to grant the dismissal.
While you can typically dismiss a Chapter 13 bankruptcy filing voluntarily, you cannot do the same for a Chapter 7 filing without obtaining judicial approval due to exceptional circumstances. Keep in mind that the dismissal of your bankruptcy case will reinstate your obligation to pay the outstanding debt, minus any payments made during proceedings. You will also be responsible for any interest accrued during the bankruptcy process, which will increase the total amount due. Additionally, the automatic stay will be lifted, allowing creditors to resume collection efforts, including lawsuits and foreclosures.
Nevertheless, a dismissal is not always granted. The court will consider numerous factors, including the reason for filing bankruptcy, the progress of the case, and the potential impact on creditors. If the court believes that dismissal could be detrimental to creditors or that the debtor is simply trying to avoid their obligations, your motion may be denied.
Can I Covert My Bankruptcy Case From One Chapter to Another?
Another option is to convert your case. Before converting from Chapter 13 to Chapter 7, you must pass the means test. This test compares your income to the medical income of similar households in New York. If your income is below the median, you will be eligible to convert. If your income exceeds the median, you may qualify if you can demonstrate exceptional circumstances that justify the conversion. The most common reason for converting from Chapter 13 to Chapter 7 is the inability to keep up with the payments outlined in your repayment plan. Conversion can provide a fresh start by discharging eligible debts, but you will have to sacrifice non-exempt assets.
Navigating the bankruptcy process can be incredibly challenging. If you have already filed and need to halt proceedings, it’s in your best interest to consult with a determined attorney who can provide tailored advice for your specific situation. The Lauterbach Law Firm can assist you with these complex financial and legal matters. Connect with our firm today for more information.
