Every so often, we are faced with a situation in which a client has recently filed for bankruptcy, but wants to change his or her mind. Sometimes they want to change their type of bankruptcy – to either a Chapter 7 “straight” bankruptcy or the more long-term Chapter 13 – and sometimes they want to do away with the entire bankruptcy altogether. For very specific and usually sudden changes in their financial life, bankruptcy is no longer the correct path for them. So can they do it? Is bankruptcy something that can be reversed in Iowa? Or is it a proposition that can’t be undone once the wheels are in motion?
The answer – like many aspects of bankruptcy – is that it depends on the situation. Let’s start with an example of someone who wants to change their mind and undo their bankruptcy filing. In this person’s case, the type of bankruptcy they filed plays a key role into whether a court will allow the bankruptcy to be dismissed. If you’ve filed a Chapter 7 bankruptcy, you probably know that completing a Chapter 7 bankruptcy only takes a matter of months. Once it’s done, it’s done. A Chapter 7 case basically deals with your financial situation at one exact time, and it is unlikely that you will have a large influx of money that will change that situation. Of course, you can never say never with these sorts of things. If you happen to inherit a large amount of money, for example, you may be able to pay your debts without the assistance of bankruptcy.
It’s all a matter of timing in Chapter 7 cases, and the exact laws and codes in Iowa are too complex to fully detail in this blog post. If you are considering requesting a voluntary dismissal from your Chapter 7 bankruptcy in Iowa, contact Marks Law Firm today. Due to the complicated nature of bankruptcy dismissals, it behooves you to make sure your case will qualify, and that you are taking all the necessary steps to get rid of your bankruptcy. Attorney Sam Marks has experience helping clients both file their bankruptcy cases, but also get out of them once their financial situation changes.
At Marks Law Firm, we also have experience helping clients request dismissal from their Chapter 13 cases, although these dismissals can be even more complicated than Chapter 7 dismissals. Generally if you get a job or receive some unexpected money immediately after filing for Chapter 7, you will be granted a dismissal if you can pay your debts. Chapter 13 cases take far longer to complete (about 3 to 5 years) and revolve around a payment plan that configures with your life plan. If part of your life plan changes – for instance, a new job or an unexpected source of income – your ability to pay off such debts can dramatically change as well. Simply put, you will need to consult a bankruptcy attorney if you intend to get a dismissal of your bankruptcy just as you did when you filed for bankruptcy. For more information, and to schedule a free consultation, give us a call right now!