There are times when people file for bankruptcy in Chapter 7 but they soon realize they need to get out. Here are a few important things you need to know about dismissing a Chapter 7 case in Las Vegas.
1.Getting in is a lot easier than getting out. Once you file your Chapter 7 bankruptcy in Las Vegas, you are not allowed to walk away from your case without the bankruptcy judge’s permission. However, voluntary dismissal is possible.
2.So long as dismissal won’t prejudice your creditors, you can file your motion for voluntary dismissal; however, you will have to (a) serve all the parties (the court, the Trustee, the Executive Office of the U.S. Trustee, and all creditors), and (b) defend your position to your judge at the hearing.
3.Have a good reason for voluntary dismissal. The reason you can’t just file a notice of dismissal as you could with a regular civil matter is that filing a Chapter 7 bankruptcy petition sets a process into motion. The automatic stay was sent out to your creditors, halting collection efforts, and the trustee spent time reviewing your case and administering your assets. Because filing for bankruptcy causes others to expend their resources, the system is designed to prevent frivolous filings.
4.Your bankruptcy filing will appear on your credit report. You might think this is unfair, but even if your case isn’t resolved, such as the court granting you a discharge, a Chapter 7 bankruptcy filing will appear on your credit report. Ideally, this is something to consider before filing.
5.You can convert your Chapter 7 case into a Chapter 13 one. In Chapter 13, the debtor makes a payment plan to resolve his or her debts. So long as you do so in good faith, you have an automatic right to convert your Chapter 7 case into a Chapter 13 one. This is a good move if your voluntary motion to dismiss didn’t work or if there’s a good chance you would not be able to file one. If you haven’t done so already, now would be the time to hire a bankruptcy lawyer.
Of course, most or all of these problems and steps can be headed off if you talk with an experienced bankruptcy attorney before you make any moves.
For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Freedom Law Firm Las Vegas bankruptcy attorney for a free initial consultation by calling 702-903-1354 or visiting our website at freedomlegalteam.com.
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