San Jose Bankruptcy Attorney Talks About Dismissal
San Jose Bankruptcy Attorney Talks About Dismissal
When a debtor files a petition for bankruptcy, the debtor may go for several weeks without hearing anything about their papers. This is typical because once filed, the US Trustee’s office must review the petition for accuracy and completeness and creditors get a chance to object, file proof of claims, or file adversary proceedings. During this time, the debtors can usually voluntarily dismiss their bankruptcy petition.
Why would a debtor dismiss their petition? There can be many reasons. The most common one is that their major creditor, who had previously refused to even to answer phone calls, suddenly has an interest in settling. For example, a mortgage lender who had declared that no relief could be given, may suddenly decide that the debtor’s do qualify for a drop in interest rates or are willing to extend the loan on more favorable terms. Alternatively, a credit card company may decide that they only want half of their bill paid. In those cases, the debtor may not be able to agree to such a deal without first dismissing the bankruptcy.
Another common reason is that the debtor’s situation has changed. For example, the debtors may have lost their job or just had a baby. The debtors may have come into money or found a new job. Either one of these situations may affect their bankruptcy and the debtor may be better served to dismiss their current case so that they may refile later.
Finally, the US Trustee may want the debtors to dismiss their case. The Trustee, upon review of the papers, may believe that the debtors do not qualify for bankruptcy and may file a motion to dismiss. To avoid a court hearing, the debtors may decide to dismiss their petition rather than have a judge decide the outcome.
If you are in the middle of bankruptcy and wish to dismiss so that you can refile, please consider contacting Sagaria Law for a consultation 1-800-941-6730 or www.sagarialaw.com.
