Can You Withdraw a Chapter 13 Filing?

If you are drowning in debt, bankruptcy may seem like the best option at the time. While a Chapter 7 bankruptcy is often a quick and easy option, many people do not qualify for it. That means they either must keep drowning in debt or opt for Chapter 13 bankruptcy.

The process of Chapter 13 is not easy, though. The debt does not get wiped out. You are making payments on it, and sometimes, it is hard to keep up with these payments, especially if you suddenly suffer a financial setback.

When something like this happens, you may not be able to move forward with the bankruptcy. You may want to withdraw the filing. Is this possible?

It is possible, but there are some caveats to consider. Here’s a look at the reasons for withdrawal and what happens when you withdraw.

Reasons for Withdrawal

You can withdraw Chapter 13 bankruptcy at any time. Many people do so because they lost their jobs or got demoted from their positions at work. Some also do when they get injured or seriously ill.

The court may also dismiss your case for various reasons, such as:

• Failure to meet court deadlines.
• Failure to propose a compliant Chapter 13 plan.
• Failure to file tax returns.
• Failure to make payments.

If you decide to voluntarily dismiss your case, the process is not too difficult. You will need to submit a written notice to the court of your intent to dismiss the case.

What Happens When You Withdraw a Filing?

When a Chapter 13 case is dismissed, it is treated as though the filing never existed. The automatic stay is immediately lifted, which means you could receive collections letters, calls, and lawsuits. A person could also face repossessions and foreclosures. Also, any penalties and interest that would have been discharged with the bankruptcy could still be imposed.

However, if you voluntarily dismiss your Chapter 13 bankruptcy, you can file again right away. Why would you want to do that? Voluntarily dismissing and then refiling can reset the clock. You can get a new 60 months to pay down debt and catch up.

Contact Us Today

Withdrawing a Chapter 13 bankruptcy filing is possible, but it comes with some consequences. Make sure you know what to expect so you can make the right decisions.

Bankruptcy is a serious matter that can have a lasting impact on your financial situation. Florida bankruptcy attorney Brian K. McMahon, P.A. can make the process easy and stress-free. Get started by scheduling a consultation. Call (561) 658-1789 or fill out the online form. We serve the West Palm Beach, Boca Raton, Port St. Lucie, and South Florida areas.