What is Emergency Bankruptcy Filing?

An emergency bankruptcy filing is just what it sounds like. You need to file for bankruptcy and you need to do it in a hurry before some catastrophic event takes place. This could include an eviction, a foreclosure, the repossession of a vehicle, or you’re now facing threats of a lawsuit. Once you file the bankruptcy, all attempts to collect the debt must stop. This includes an eviction or a foreclosure. In this article, we’ll answer the question: “What is emergency bankruptcy filing” and it can help you out of a very difficult situation.

What is the Automatic Stay in Bankruptcy?

The automatic stay prevents creditors from resuming or initiating any action against you. Bankruptcy can stop a foreclosure, an eviction, or prevent your car from being repossessed. It can also prevent a creditor from gaining a judgment against you. Once they have a judgment, they can begin garnishing your wages, levying your bank account, or placing a lien on your home. If they’ve already begun garnishing your wages or have levied your bank account, you may be able to get that money back.

Depending on your situation, the automatic stay can either buy you some time or prevent an aggressive collections action against you.

What is Emergency Bankruptcy Filing?

When your bankruptcy case is opened, the court will expect that you have a full filing. This includes all of your paperwork. You will also need to take a credit counseling course before the bankruptcy can proceed. But if you’re in a tricky situation, you can expedite the process triggering the automatic stay before you have all of your documents prepared.

What Do I Need to File an Emergency Bankruptcy?

The documents listed below form what is known as a “skeleton petition” for Chapter 7 bankruptcy.

  • The bankruptcy petition includes basic identifying information and tells the court what chapter of bankruptcy you intend to file under.
  • Creditor’s information – You’ll need to include the names and addresses of all the creditors to whom you currently owe money. 
  • Social security number – The court will give you a form and you will need to provide your social security number.
  • Certificate of credit counseling – The court requires that you have completed your credit counseling course prior to your filing. There are very few exceptions to this rule.

What the courts require will depend on the county in which you’re filing. Additionally, when you file an emergency bankruptcy, you will need to pay the filing fee. You can opt to either pay it in installments or pay it upfront, but if you’re filing under Chapter 13, you’ll need to pay the entire amount immediately.

After the emergency bankruptcy has been filed, you will need to provide the court with the rest of the forms.

Who Should Consider an Emergency Bankruptcy Filing?

There are a number of situations in which an emergency filing can be of great benefit. However, you will want to discuss the process with your attorney before attempting to file one on your own.

  • Homeowners facing foreclosure – Those who have fallen behind on their mortgage payments and defaulted on their loan will want to consider filing for an emergency bankruptcy to prevent foreclosure. If you’re filing under Chapter 7, it will buy you some time in the house where you won’t need to pay your mortgage. You’ll be able to save up money to prepare your next move. If you file under Chapter 13, you may be able to save your home and repay the arrearages.
  • Renters facing eviction – Filing for bankruptcy can stop an eviction temporarily. This can buy you some time or allow you to repay the debt owed over the course of a repayment plan.
  • Those facing vehicle repossession – Filing for bankruptcy can prevent your vehicle from being repossessed while the situation is sorted out. If you file under Chapter 13, you may be able to repay the arrearages and continue making payments, thus holding onto your car. 
  • Those facing creditor lawsuits – If a creditor is threatening a lawsuit or has just gained a judgment against you, an emergency filing can prevent the creditor from taking more aggressive actions such as wage garnishments or placing liens on your real estate.

Talk to a North Carolina Bankruptcy Attorney Today

What is an emergency bankruptcy filing? It may be your best chance to avoid a disaster. If creditors are threatening to sue, your facing foreclosure, or you’re being evicted, the attorneys at Jack G. Lezman, PLLC can help you stabilize your situation. Talk to us today for more details.

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