Bk Chapter 7Can I stop my Chapter 7 bankruptcy? 8 Answers as of February 14, 2011

I filed for a chapter 13 originally because of stopping my foreclosure on our home. When the bankruptcy wasn't approved because of secured liabilities being over the allowed amount, my attorney called me on the weekend of Thanksgiving which gave me 24 hours to decide to file for a Chapter 7, so I did. I have a hearing tomorrow for creditors and I have asked him to stop my bankruptcy. Last week, I received some money from my 2009 taxes and he says I cannot stop the bankruptcy because of these assets. I really need to have this money to pay my car off and get to work and take my 5 children to and from school. He has stated that it is impossible to stop the chapter 7 now and that the Trustees can keep my IRS refund. Can I still stop the Chapter 7? Thank you, for your time and assistance.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
Dismissal may be obtained only by court order, by filing a motion to dismiss with the court. However, the debtor must show cause for dismissing the Chapter 7, and that cause must not be a source of prejudice to the creditors as a whole. In particular, dismissal to satisfy a secured creditor's claim, with the intent to refile and discharge the unsecured debt will be denied (See Matter of Blackmon (SD Ohio 1980) 3 BR 167, 168-169).
Answer Applies to: California
Replied: 2/10/2011
Carballo Law Offices
Carballo Law Offices | Tony E. Carballo
It is not impossible to stop a Chapter 7 case but you do need court permission. You have to file a motion to dismiss the case and the Trustee may oppose the motion if there is property that you cannot exempt. If you do not have exemptions to protect all your property the Trustee may object to the dismissal of your case. It will depend on the amount involved. The court decides whether or not you can dismiss your case. You do not have the right to dismiss your case without a court order.

Once you file for Chapter 7 all of your property is transferred to the estate in bankruptcy and you can remove from the estate and keep whatever property the law allows you to exempt (keep). Technically the property you cannot exempt is no longer yours but belongs to your creditors and it is the Trustee's job to take the property and distribute it to the creditors. Your income tax refund belongs to the estate and unless you can exempt it. It is questionable, however, whether the federal earned income credit belongs to the estate. There are different decisions by different bankruptcy court on that issue. Therefore, if you are getting a large tax refund because you have children and did not earn much then your lawyer can try to argue that the amount you are getting because of the earned income credit may not be part of your bankruptcy estate. The same may be true with regard to the additional tax credit for children 16 or under that is available under federal tax laws.
Answer Applies to: California
Replied: 2/9/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
I suspect you are stuck in the Chapter 7. Sounds like you have assets the Chapter 7 trustee wants.
Answer Applies to: California
Replied: 2/9/2011
Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
Only the Bankruptcy Court Judge can dismiss a Chapter 7 case. There is no absolute right for a debtor to dismiss his Chapter 7 case. If you want to try to dismiss your Chapter 7 case, you need to bring a Motion to Dismiss. The Judge will decide if it is in the best interests of your creditors for the case to be dismissed. If so, he will dismiss the case. If not, you will be stuck in a Chapter 7.

Lining up creditors to support your Motion to Dismiss would be helpful. Making a deal with the Trustee may be necessary. It is best to have a good bankruptcy attorney assist you with such a Motion. I have been successful many times in moving to dismiss bankruptcy cases that were filed by other counsel or with the help of paralegals without the client receiving proper advice. Theses cases should not have been filed in the first place. If you need help with moving to dismiss a bankruptcy case, call me. Even if you are unable to dismiss your Chapter 7, you may be able to protect your tax refund if you have available exemptions left over.
Answer Applies to: California
Replied: 2/9/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
It's very difficult to dismiss a Chapter 7 case. You can file a motion to dismiss, but the Judge is going to look at what's in the best interest of your creditors, NOT you, in determining whether to dismiss. Plus, the Trustee will need to be compensated for his/her time in any event.
Answer Applies to: California
Replied: 2/9/2011
    Gus Johnson Attorney at Law
    Gus Johnson Attorney at Law | Gus Johnson
    I would go by your attorney's advice.
    Answer Applies to: South Dakota
    Replied: 2/9/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    Listen to your attorney!! From: Question From LawQA [mailto:questions@lawqa.com] Sent: Wednesday, February 09, 2011 11:25 AM To: jarunyon@sbcglobal.net Subject: Question From LawQA ID:11091 A QUESTION HAS BEEN SENT TO YOU VIA A BANKRUPTCY WEBSITE ON THE LAW QA NETWORK ID:11091 Question: Bk Chapter 7Can I stop my Chapter 7 bankruptcy? Question Detail: I filed for a chapter 13 originally because of stopping my foreclosure on our home. When the bankruptcy wasn't approved because of secured liabilities being over the allowed amount, my attorney called me on the weekend of Thanksgiving which gave me 24 hours to decide to file for a Chapter 7, so I did. I have a hearing tomorrow for creditors and I have asked him to stop my bankruptcy. Last week, I received some money from my 2009 taxes and he says I cannot stop the bankruptcy because of these assets. I really need to have this money to pay my car off and get to work and take my 5 children to and from school. He has stated that it is impossible to stop the chapter 7 now and that the Trustees can keep my IRS refund. Can I still stop the Chapter 7? Thank you, for your time and assistance. *********************************** To answer this question, please just reply to this email. The original content and subject should not be modified, otherwise your answer will not be valid.
    Answer Applies to: California
    Replied: 2/9/2011
Click to View More Answers: