Filing for bankruptcy offers a fresh financial start for many individuals with debt. And while bankruptcy does take effect relatively quickly, sometimes an emergency bankruptcy is needed to expedite the process. This bankruptcy filing is not the standard procedure and it is not a system that can be abused. But in certain urgent financial situations, such as imminent foreclosure, repossession, or wage garnishment emergency bankruptcy can be necessary.
An emergency bankruptcy attorney will help determine if an emergency bankruptcy filing is a right decision. Once you have filed, your attorney will help you through the process. Just because an emergency bankruptcy offers immediate action, it does not mean the process ends right away. Here is everything you need to know about filing for emergency bankruptcy.
What does an emergency bankruptcy filing do?
Also known as skeleton bankruptcy, it creates an immediate automatic stay on your debts. This means that any collectors must immediately halt any debt collection efforts. While this immediate financial relief is the primary appeal, it does not complete the process.
The automatic stay does grant the debtor more time to assess their financial situation before moving forward. Once the filing is complete, the debtor has 14 days to submit the rest of their bankruptcy paperwork. From that point forward, your bankruptcy case will proceed as normal.
As the name suggests, emergency bankruptcy filings are for emergencies. If the debtor is facing immediate foreclosure on their home or repossession of valuable property, an emergency filing can help.
Imminent foreclosure or repossession are the primary reasons to file for emergency bankruptcy. However, in some cases, it can stop a lawsuit by creditors. An emergency filing may also be used when more time is needed to gather information for a standard bankruptcy filing. These scenarios are rarer than an emergency bankruptcy filing brought on by imminent foreclosure.
Filing for any type of bankruptcy is a complicated and delicate process. The first step is always checking to be sure that the debtor qualifies for bankruptcy. A debtor must pass the Bankruptcy Means Test, and they must not have previously filed in the last 8-10 years.
When filing, the debtor must take even greater caution than usual. This is because the initial emergency bankruptcy filing requires only a few simple forms. The emergency filing system is quick, so there is minimal paperwork. However, this creates a double-edged sword for filers. If any of the initial paperwork is incorrect or improperly filled out, a judge might dismiss the case altogether.
Because of this, it is wise that anyone filing uses the services of a bankruptcy lawyer. A bankruptcy attorney helps to ensure that the initial filing is correct so that the case may proceed.
After the emergency bankruptcy filing must then decide on their next course of action. Most individuals filing for bankruptcy do so under Chapter 7 or Chapter 13. Chapter 7 is the most common form of personal bankruptcy filing in the U.S. Under this system, the debtor’s assets are liquidated to help pay off their creditors. Chapter 13 offers a restructured financial plan to the debtor to help pay off creditors over a fixed time period. An emergency bankruptcy filing does not absolve the debtor of these responsibilities. But it does afford them more time and freedom to proceed when filing.
If you’re filing for bankruptcy in northeast Florida, finding a bankruptcy in Jacksonville, FL must be a top priority. With a trusted bankruptcy lawyer on your side, you can be confident that your case will be handled properly. If you would like to discuss your financial options with an expert, contact Parker & DuFresne today.
To set up a free bankruptcy consultation in Jacksonville, Florida, contact Parker & DuFresne.
If you have any other questions about the process of filing for bankruptcy, be sure to contact an attorney or credit counseling service for more information.
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If you’re thinking about filing for bankruptcy in Florida, it’s important to meet with a bankruptcy attorney. You can better understand your specific situation and the types of relief that might be available to you.
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