Can you dismiss your own Chapter 13 bankruptcy?

I am often asked by my clients if they file for Chapter 13, can they dismiss their own case if they need to get out. The answer is that they can dismiss their own case at anytime by motion. It usually takes two to three  days to get a signed Order dismissing the case. Please note the debtors filing Chapter 7 cases do not have the same rights. While a Chapter 7 filer may file a motion at anytime to dismiss their case, the debtor will need the trustees consent.

One thing debtors and debtors’ attorneys need to be careful of when dismissing a Chapter 13 bankruptcy is that if a motion for relief has ever been filed in the case, the debtor will be unable to re-file for Chapter 13 bankruptcy for a six-month period (109-G). If a motion for relief has been filed in a debtor’s case, you will want to make sure that the client understands that if they dismiss their case, they will be unable to re-file for six months. Please note the six-month rule does not apply if the trustee moves to dismiss the case.

- Stone Law Firm