Expert: Terry Leeders - 5/19/2009

Question
QUESTION: I filed for a chapter 7 bankruptcy because I thought I had to if my soon to be ex husband did. After going to the meeting of the creditors I decided I did not want to go through with the chapter 7 and told my attorney this. Now I am being told that I can not voluntary withdraw since it is a chapter 7 because the trustee./creditors have interest in some of my assets. How can this be? I don't want to file bankruptcy, I am willing to pay my bills, I have always paid my bills. We were filing bankruptcy for credit cards my soon to be exhusband had gotten somehow with my name on account without my knowledge and put us in $30,000+ in debt. I did not sign for these cards, I did not know we had them, I did not use them!! I do not want to go through with this bankruptcy but being told I have no choice! Is this true and if not how do I get out of it?

ANSWER: You can try to bring a motion to voluntarily dismiss your case. It is up to the judge and trustee if they will let you.  You do not have an automatic right to dismiss.  You are correct, in saying that the trustee has an interest in your assets, that can be liquidated to pay your creditors.

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QUESTION: So your telling me even though the day of the creditors meeting I decided I did not want to go through this, I will pay the debts that my ex got without me knowing about and I informed my lawyer of this. So, they have the right to now force me to file bankruptcy, not pay my debts and take my assets?? How is this ethical? I do not have a problem paying my debts the debts not paid are the credit cards my ex got without me knowing about. I did not use these credit cards nor knew about them so how is this even fair???? I was lead to believe because he filed I had to and after listning to the video they make you watch at the meeting of the creditors I realized I did not and that is when I decided not to go through with it!

Answer
They are not forcing you to file, you filed voluntarily. You lose certain rights upon filing, and the caselaw says that it is in the creditors best interest for the trustee to liquidate unprotected assets to pay them, as opposed to the debtor paying them on their own. You can always try to bring the motion and convince the court, that this wasn't your intention, but it will be an uphill battle. Sounds like you got poor advice before filing, or that you didn't fully understand the ramifications.