Emergency Bankruptcy Filings
Emergency Bankruptcy Filings
No one wants to apply for bankruptcy. But sometimes, the circumstance requires it. And often the circumstance needs that it take place today! A bankruptcy case generally takes anywhere from one week to a month to prepare. The bankruptcy court requires a great deal of details from you, consisting of details on income, properties, debts, monthly costs, and monetary transactions that have actually happened over the last number of years. All of this typically requires time to gather.
However, typically customers will come in and they don’t have a lot of time to spare. There may be a foreclosure sale set on their home turning up, or there may be wage garnishment that is going into effect on the next income, or maybe they are having their bank accounts frozen and need access to those funds. In scenarios where a bankruptcy filing is required right away it can occur through what bankruptcy attorneys call an emergency filing.
Why you would need to file an immediate personal bankruptcy returns to the one of the most effective tools in bankruptcy – the automatic stay. The automatic stay is an order provided by the bankruptcy court instantly upon the filing of your bankruptcy case. This order stops all collections efforts versus you, consisting of foreclosure sales, garnishments, and claims. The reason that one would desire or need to file an emergency bankruptcy is due to a pending or foreclosure sale that you have to stop. The filing of the bankruptcy case will stop such things right away.
An emergency situation bankruptcy filing can be done at any time previous to the event that you are attempting to stop. For example, if your home is to be foreclosed on at noon on Wednesday, your bankruptcy case would have to be filed at some point prior to then. While not ideal, We have actually filed bankruptcy cases within hours of a pending foreclosure sale to stop the sale of the house from moving forward.
It is very important to understand that if you have had your incomes garnished or cash taken out of your savings account that the bankruptcy filing will stop future garnishments but that you will not be getting the cash that has currently been garnished back. One exception to this rule is when it concerns repossessions. If your automobile has recently been repossessed, you can submit a chapter 13 insolvency and get the cars and truck went back to you.
There is surprisingly little info that is needed for an emergency situation bankruptcy filing. The bankruptcy petition must be finished. The petition is a three page files that contains your name, address, social security number, and some general information for the bankruptcy court. You will be needed to finish a pre-bankruptcy credit counseling course. Through my office this can be done online or over the telephone and takes a little more than an hour.
As soon as these items are assembled the personal bankruptcy petition can be filed through the court’s electronic filing system – meaning it will have an instant result of stopping whatever it is you are having to stop.
Emergency bankruptcy filings are not the standard nor the favored way to get into a bankruptcy case; however if you are trying to conserve your home or stop a garnishment I can help you in getting the case filed rapidly to restrict the damage that is headed your way.
I offer a free bankruptcy assessment where we can discuss your particular scenario and figure out if bankruptcy is an excellent alternative for your monetary problems.