Can I dismiss my bankruptcy case if I decide to not proceed with the bankruptcy. The answer is, “it depends”. If you file a chapter 13 bankruptcy and decide to dismiss, the court will typically allow the dismissal simply by requesting it. However, if the case was originally filed as a chapter 7 case and had been converted to a chapter 13 and you now seek to dismiss the chapter 13, different rules apply. The debtor has to file a motion and the court can determine to dismiss or convert back to chapter 7, whichever is in the best interests of the creditors. If a chapter 7 case is initially filed and you decide to dismiss the case, it is not automatic. A motion will need to be filed and the court will determine whether or not to allow dismissal. So if a trustee determines that you have an asset that should be sold to pay your creditors and you decide you would rather the case be dismissed, the judge may not allow dismissal in that circumstance. As long as you are honest with your lawyer and fully explain your circumstances, that issue can be avoided by filing a chapter 13 or doing a workout with creditors rather than bankruptcy.
