Will My Utilities Be Shut Off During Bankruptcy?
Your financial state may have made you feel desperate enough that you frantically declared bankruptcy. But once your proceedings commence, and you reflect on the gravity of it all, you may begin to have second thoughts. Filled with regret, you may question if it is too late to take it all back. Well, for this, please follow along to find out whether you are permitted to stop the bankruptcy process once you have already started it and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help you take the right next step.
Can I stop the bankruptcy process once I’ve initiated it?
In short, you can stop the bankruptcy process once you have initiated it by filing a motion to voluntarily dismiss your case. However, the New York State Bankruptcy Court holds the ultimate power to approve or deny your request. You may wonder why the court would prevent you from walking away when you voluntarily file for bankruptcy in the first place. Well, below are some possible explanations for this:
- The court may believe your case dismissal would put your creditors at a significant disadvantage.
- The court may believe you fraudulently used bankruptcy to delay your creditors or hide your assets.
- The court may believe you have done poorly at following procedures or meeting deadlines thus far.
- The court may believe you cannot achieve a fresh start financially without the aid provided by bankruptcy.
- The court may notice you have a history of filing for bankruptcy and subsequently requesting to dismiss it.
Can I convert my bankruptcy to another chapter once I’ve started it?
You may not be second-guessing your bankruptcy filing in general, but you may start wondering whether you filed for the right chapter. Well, you may rest easier knowing that you may file a motion to voluntarily convert your Chapter 7 bankruptcy to a Chapter 13 bankruptcy, or vice versa, even if you have already started the process.
However, you must understand that you may have to meet certain expectations after this switch. For example, if converting from Chapter 7 to Chapter 13, you may be expected to make your first plan payment within 30 days of the court’s notice of your conversion, or else you risk your case being dismissed altogether. You may also be required to redo your 341 meeting of creditors, where they may hold the right to object to the conversion, on account of them being placed at a significant disadvantage.
It is also worth mentioning that, in this given example, your Chapter 7 bankruptcy trustee may have already sold some of your nonexempt property and distributed the funds to your creditors. With your new Chapter 13 bankruptcy case, there may not be a way to reverse these actions to get this property or its liquidated funds back. All of this to say, you must deeply reflect on whether a conversion is well worth it for you and your best interests.
If you need legal representation fast, a talented Rockland County bankruptcy attorney is prepared to step up. The team at The Law Offices of Allen A. Kolber, Esq. looks forward to meeting you, working with you, and helping you.
