How to Drop a Bankruptcy

Getting overwhelmed with debt without the means to pay it can force you into filing for bankruptcy. Chapter 7 bankruptcy liquidates any assets the petitioner has in order to pay what debt it can with those funds. Chapter 13 bankruptcy reorganizes the finances of the petitioner, using future earnings to pay debts in a modified payment plan. Should you, as the petitioner, get a better paying job, come into a large sum of money to satisfy debts or decide to otherwise withdraw your petition, carefully consider all ramifications prior to withdrawing.

Instructions

1

Call the trustee assigned to your bankruptcy petition. Explain the change in your circumstances and your desire to withdraw your petition. Ask his input about the withdrawal, and inquire about any special procedures you need to be aware of. The trustee may suggest changing the bankruptcy from a Chapter 7 to a Chapter 13 instead of dropping the case entirely.

2

Go to the bankruptcy court clerk's office. Ask for the form to withdraw your bankruptcy petition. Depending on your county, this might be called a "motion to dismiss" or a "petition to withdraw."

3

Fill out the form completely, including your petition case number and case title, and complete the sections that require you to explain the reason for withdrawal.

4

Take the form to the bankruptcy court, and file the form with the clerk. Ask the clerk when the deadline is for any objections to your withdrawal, request any additional forms needed to notify creditors, and schedule a hearing date for the dismissal.

5

Send all creditors a copy of the withdrawal motion. Creditors will have until the objection date to file a motion objecting to your withdrawal. If no objection is made, attend the hearing for dismissal to answer any questions posed to you by the court about the change.