Legal Question in Bankruptcy in California

Dismissal of Bankruptcy Petition

I noticed a question about withdrawl of bankruptcy petition which recieved a number of replies that confused me.

I found in the following site that discusses bankruptcy that the petitioner has the right to request dismissal of the bankruptcy petition:

http://www.bcsalliance.com/y_bankruptcy1a.html

and it states that :

''The time between filing for bankruptcy and obtaining a discharge usually lasts anywhere from four to six months. Until you obtain a discharge, you have the right to back out of the bankruptcy, meaning you can request that the bankruptcy be dismissed.''

A number of attorneys have indicated that if the petitioner requested dismissal of the Bankruptcy it would result in legal penalties for the petitioner.

So I have a 3 part question:

1)Would requesting dismissal of the Bankruptcy result in legal penalties for the petitioner?

2)If a petitioner requested dismissal of the Bankruptcy before it became final, would it still appear on the petitioners credit history?

3)If it became neccessary how long before the petitioner could re-file for bankruptcy?


Asked on 3/07/06, 10:58 pm

1 Answer from Attorneys
Judith Deming Deming & Associates

Re: Dismissal of Bankruptcy Petition

You need to be aware that the bankruptcy laws changed last October and any information you may read about dismissal may only reflect PRIOR bankruptcy law, when it was much easier to file and dismiss. Now, you can "request" permission to dismiss or withdraw your petition, but the request may be denied and you may be subject to penalties even if request is granted. It is impossible to tell you whether the request will be granted or not, because the facts of each situation dictate the answer; for instance, if your only reason in filing was to stall a creditor from getting payment, that was an act in "bad faith" and a misuse of the bankruptcy laws and it may well result in punitive action. Yes, a filing by itself, is usually reflected on your credit, even if the petition is dismissed.

Read more
Answered on 3/08/06, 3:41 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in California