Announcing an individual's bankruptcy is a huge decision that will have a long-term impact on your financial life. With this in mind, you shouldn't make this decision easily. You should only choose to submit it after carefully assessing your situation. But what if you have proposed and are changing your mind about the whole thing? Can you cancel your bankruptcy?
No matter how you change your views on bankruptcy, it depends on what documents you submit. If you declare Chapter 7 bankruptcy, you need to obtain a court permit to cancel the lawsuit. By the way, this is not easy. One of the reasons behind this is the same reason as the change in the bankruptcy law.
The idea is to prevent people from abusing the system, rather than using this method to obtain a legal way to get rid of debt. For example, if you submit Chapter 7 and fall into a shipwreck a few days later, you may be concerned about potential lawsuits involving the accident. You may consider dismissing the case so that you can file a new case. However, this may not fly with the court because it is not in the best interests of the creditors and only needs to restart and submit new cases.
In other words, you can't play the system. You cannot continue to dismiss your case and submit a new application in order to include more debt in your bankruptcy application. However, if you submit Chapter 13, if you change your mind, it will be easier for the case to be rejected.
By the way, Chapter 13 is used to establish a payment plan in which you will pay a portion of your total debt. Either way, it is important to understand as much as possible about the process before making the final decision. You do not want to change your mind later and you will only be denied by the court.
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Orignal From: Cancel bankruptcy - change your mind after you apply
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