One of the questions that bankruptcy attorneys often get asked is whether the debtor is allowed to withdraw from bankruptcy proceedings. Perhaps you have already started the bankruptcy filing process by consulting an experienced Iowa bankruptcy attorney who has assisted you with filling out all the right documentation, and you’ve paid the fees and you are moving forward.
The next step is advising your creditors that you have filed for bankruptcy, and perhaps meeting with them and attending a credit counseling session. You are eventually heading to a U.S. Bankruptcy Court hearing (Meeting of Creditors), and your Iowa bankruptcy lawyer advises you that you will be through the process shortly. Any second thoughts you might have had about taking this route have long since vanished. You still believe filing for bankruptcy was the only thing you could have done to get out from under your overwhelming debt load.
Then, before you get to your hearing, you get a phone call or a letter advising you that you have just come into some money, perhaps through inheritance or the lottery. Things like that do happen, although rarely. If you suddenly and unexpectedly come into money, you are allowed to stop the bankruptcy process in its tracks. However, you are still responsible for paying off your creditors. Once you have done that, the information that you gave to your lawyer that was then once entered into the system is purged. You will not have a record of filing for bankruptcy.
While winning the lottery might seem like a pipe dream, at least you know you do have the opportunity to withdraw from a bankruptcy proceeding should the circumstance arise.