subject: If I file bankruptcy, can it be reversed? [print this page] With sudden hit of financial crisis across the nation, many people in the America are deep in debt. Due to stress that come with debt mounting result in panic situation which ultimately leads to declaring bankruptcy. Once filed bankruptcy, it can not be reversed but can be possible to stop the bankruptcy proceedings during the first four to six months from actually finishing bankruptcy declaration. Filed bankruptcy will appear on a credit report for 10 years whether the actual case is completed or not.
However, before filing bankruptcy, it is advisable not to get panic and think for a while how your decision will affect your credit and life in future. Deciding to declare bankruptcy requires many considerations that represent many aspects of your finance and life. As bankruptcy can not be reversed, you need to be completely sure whether it is the only solution to your financial problems. If you are undergoing such debt stress then learn about the different bankruptcy options that are available to you and how they help you in the present situation.
There are mainly two types of chapters 13 and 7 that are most common for individual fillings. In chapter 13, the consumer filled is responsible to pay debt at scheduled repayment dates without interest accruing and chapter 7 eliminates the necessity to pay back debts owed except the medical bills and student loans.
Under this chapters, make sure that you are eligible to file bankruptcy and your debt for which you are filings does not include medical bills and student loans. Otherwise there is not use of filling bankruptcy.
Make sure that you have no co-signers on any of your loan like credit cards, rental agreement otherwise co-signer will become responsible for your debts when you file bankruptcy. If there are then speak to your co-signer before you file bankruptcy.
However, if you filled bankruptcy and consider stopping it, then you must act with in 4 to 6 months. Visit the bankruptcy where you filled bankruptcy case and contact the clerk that you want to file a motion to stop the bankruptcy. If you hired a bankruptcy attorney, then he will take care of it on behalf of you.
Fill out the form given by the clerk, which is necessary for hearing in front of judge as why you want to stop your bankruptcy proceedings. Depending on the reasons mentioned before the court judge, he will decide whether to stop or not. The possible reasons could be change in financial situation like getting a new job or an inheritance of property and marital status such as divorce or marriage.
If the court judge hearing your case approves for your reasons and convey the possible consequences of a dismissed bankruptcy, he will dismiss your case. In case the judge does not convince with your reason, then you have to file for another hearing for stopping the bankruptcy proceedings it you feel the reasons are compelling enough.
