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How to withdraw a bankruptcy petition

Updated February 21, 2017

Sometimes, after filing a bankruptcy petition, debtors desire to withdraw it. While withdrawing a bankruptcy petition is fairly easy, keep in mind that any debts that were being paid by the bankruptcy are now going to switch over to currently due. Think through the decision to withdraw a bankruptcy petition carefully, and make sure that it is a financially and legally sound decision. Read on to learn how to withdraw a bankruptcy petition.

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  1. Talk to the attorney handling the case. The attorney can answer any questions and best advise debtors what their best options are. He will also file the motion to dismiss the bankruptcy petition.

  2. Make sure withdrawing the petition is what is really desired. Discuss the pros and cons of withdrawing the bankruptcy petition with the attorney. Understand everything--if anything is unclear, ask questions.

  3. Know the consequences. There are financial and legal repercussions to withdrawing a bankruptcy petition. Make sure that any assets, such as homes or cars, are not going to be repossessed or foreclosed upon.

  4. Schedule a hearing with the trustee. After the motion to dismiss the bankruptcy is file with the trustee, a court date will be set. If there are no objections from creditors and the trustee has no problem with it, the case will be dismissed on the day the court date is set.

  5. Have a plan for debts. Once the bankruptcy is dismissed, all debts will be due and payable, and creditors will want their money. Any past due amounts will also be due immediately. Attorney fees not paid through the bankruptcy will be added to the list of debts.

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About the Author

This article was created by a professional writer and edited by experienced copy editors, both qualified members of the Demand Media Studios community. All articles go through an editorial process that includes subject matter guidelines, plagiarism review, fact-checking, and other steps in an effort to provide reliable information.

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