I live in RI. I filed for Chapter 7 bankruptcy before a judge in the last few weeks and I am second guessing my decision.
Can I cancel the filing and if so, are there any repercussions? I have heard that once doing so the fact that I filed remains on your credit report and may cause more problems with creditors and applications for credit.
No, you cannot just cancel a chapter 7 once it is filed. Unlike chapter 13 bankruptcy, you do not have the right, as a matter of law, to simply dismiss the case. You can file a Motion to Dismiss the case, but you need to show cause as to why it should be dismissed (more than just second guessing).
Some perspective. Everyone has second thoughts. However, there was a reason you filed bankruptcy, that reason hasn't changed, only your resolve. Get your bankruptcy discharge, you will be SO MUCH BETTER OFF. As yes, once you "file" the case, the credit impact is done, what happens to the case (dismissal, discharge) is unrelated.
Cancelling a Chapter 7 is nearly impossible as you need to show the court that your creditors would be better off by doing so. BTW, you probably did not appear before a judge, but before a bankruptcy trustee. If you fail to complete the bankruptcy by not cooperating with the trustee or completing the 2nd required class, you will not receive a discharge but you will have all of the negative consequences of bankruptcy to deal with nonetheless, including the bankruptcy appearing on your credit report. Without a discharge your creditors can resume collection efforts and all that involves. Hope this perspective helps!
You can dismiss your own case, but yes, if certain creditors will be prejudiced, you may have a hard time. You should consider why you filed in the first place and look at the whole situation before making such a decision. Your best bet is to consult with an attorney and not go it alone. Bankruptcy can become rather complex and can have problems down the road if not done properly.
I agree with the previous lawyers' sentiments. However, as a practical matter, if you do not take the financial education course, the court will dismiss your case. Probably not a good move, but it is possible to have your case dismissed, which is not the same as "cancel."
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This attorney is licensed in Maryland, Virginia, and the District of Columbia. If you are not in these jurisdictions, please consult with an attorney who is licensed in your jurisdiction. This in no way implies or creates an attorney-client relationship.