Want to cancel bankruptcy process
I have started personal bankruptcy proceedings -two appointments with a trustee. I have no income or property. I have not filed income tax for the last 5 years. The trustee said I have to forward all tax refunds to her (haven’t done it yet). I paid her $1000 to start proceedings. I am unemployed and have been staying with relatives and friends but need to get my own place and support myself using the tax refunds. I want to cancel and not got through with the bankruptcy . Is there a fine/penalty for doing so ? Thanks for your reply.
1 Answer
If the bankruptcy has actually been filed, then you cannot cancel it.
You will lose the income tax refunds for the years up to an including 2018 because they are property of the bankruptcy estate. Let’s suppose you wait a few years until you file your tax returns hoping they’ll be mailed to you – it’s not gonna happen because the income tax refunds will be mailed to your trustee.
Since you cannot cancel a bankruptcy, the smart thing to do is perform everything the trustee requires you to do so you can get your discharge. You won’t be debt free until you are discharged from bankruptcy – that’s the most important step in the process. So you should:
- Attend the two counselling sessions
- Keep a record of your monthly income and expenses during the bankruptcy and submit them to the trustee
- Pay the trustee his fees
Your Answer
1 Answer
If the bankruptcy has actually been filed, then you cannot cancel it.
You will lose the income tax refunds for the years up to an including 2018 because they are property of the bankruptcy estate. Let’s suppose you wait a few years until you file your tax returns hoping they’ll be mailed to you – it’s not gonna happen because the income tax refunds will be mailed to your trustee.
Since you cannot cancel a bankruptcy, the smart thing to do is perform everything the trustee requires you to do so you can get your discharge. You won’t be debt free until you are discharged from bankruptcy – that’s the most important step in the process. So you should:
- Attend the two counselling sessions
- Keep a record of your monthly income and expenses during the bankruptcy and submit them to the trustee
- Pay the trustee his fees