If you’re dealing with debt, one of the options you may have open to you is filing for bankruptcy. Not everyone wants to go through with bankruptcy, which is reasonable considering all the penalties that result. A damaged credit score, an inability to get loans or a mortgage right away and other issues may make bankruptcy a frustrating proposition, even if a person’s finances are in bad shape.
Some people find themselves in a unique position where they begin a bankruptcy only to want to stop. Depending on how far along the case is, you may not be able to stop a bankruptcy once it begins. Your attorney will have to help you follow the legal procedures to get out of it, and a court might disagree if backing out would further hurt your creditors.
Why would you stop a bankruptcy once you start?
There are few reasons to stop a bankruptcy once you begin. Rarely, if a person receives an inheritance or job offer and can pay off the debt, they may ask to do so.
Sometimes, people want to back out because of the fear of what a bankruptcy will do to them for the next few years. That’s not a good reason to stop the bankruptcy and may result in a judge denying the request. If you try to back out with no plan, your creditors may end up with even less, and that’s something they won’t be happy with.
Even if you decide to have the case dismissed, it’s likely that your bankruptcy will still stay on your credit report for up to a decade. Since that’s the case, it’s more appropriate to go through with it and to take steps to protect any income or property that you happen to gain possession of during the process.
Your attorney can work with you to protect any kind of inheritance you’re given or wages from a newly gained job if those situations arise. Until then, if you file for bankruptcy, stick to the plan and work on building a solid financial base for yourself by completing it as intended.