Are there any penalties or fees for filing a motion to withdraw your bankruptcy petion?

Question

This is directed to bankruptcy lawyers.

Answer 1

A debtor can voluntarily dismiss a Chapter 13 bankruptcy at any time.

Dismissal of a voluntary chapter 7 case is governed by § 707 of the Bankruptcy Case, which states that a court may dismiss a chapter 7 case "only for cause". Debtors do not have an absolute right to dismissal of their chapter 7 case

A debtor must establish "cause" to obtain dismissal of a voluntary chapter 7 case. Here in California, the Ninth Circuit has ruled that "a voluntary Chapter 7 debtor is entitled to dismissal of his case so long as such dismissal will cause no 'legal prejudice' to interested parties.". The debtors bear the burden of proving that dismissal would not prejudice their creditors.

There is no filing fee to file a dismissal of a Chapter 13 bankruptcy or to file a motion to dismiss a Chapter 7.

Depending on the circumstances of the case, dismissing a bankruptcy might be harmful to you ability to refile if you change your mind later. See a local bankruptcy attorney for more details.