When faced with an imminent financial disaster, such as a foreclosure, repossession, or wage garnishment, filing for an emergency bankruptcy can stop these actions.
Filing for bankruptcy is a complicated and very specific process.
A lot of paperwork and information need to be collected, which can be a time-consuming process.
If your foreclosure is very close, an emergency filing can help.
Also known as a skeleton bankruptcy filing, emergency filing can create an immediate automated stay, stopping all debt collection efforts.
The difference is that the bankruptcy case begins immediately with minimal form submissions.
A danger of an emergency bankruptcy filing is that the execution is very fast. If any of the paperwork or information is incorrect, the judge may dismiss or deny the case.
Therefore, it is strongly recommended to use the services of a very experienced bankruptcy lawyer. They will make sure to fill out and submit the forms correctly.
When to File an Emergency Bankruptcy
An emergency bankruptcy filing should only be considered when a foreclosure or repossession is very close to being executed.
Many debtors work on solutions for debt relief and receive a shock when they receive foreclosure or repossession papers.
In some cases, filing can also stop a lawsuit brought on by creditors.
When the automatic stay is in place, debtors can stop and evaluate their situation with less stress and urgency.
Likewise, it will stop all collection efforts. This includes the constant phone calls to you and others you may know.
Emergency bankruptcy can also be considered when extra time is needed to gather information for a standard bankruptcy filing.
Above all, an emergency bankruptcy filing can help save your home or vehicle when creditors are pursuing foreclosure or repossession.
You should note that an automatic stay will not stop certain types of collection, such as child support and alimony, taxes, or pension loans.
This is another reason to contact a bankruptcy attorney. They will inform you of what debts and payments are exempt from the stay.
How to File an Emergency Bankruptcy
First, you must make sure that you qualify to file for bankruptcy in the first place.
You must not have filed in the last 8-10 years, and you must pass the bankruptcy Means Test.
At Parker & DuFresne, we will have a free consultation to decide if you are eligible to file an emergency bankruptcy.
In addition, Chapter 7 bankruptcy requires the filer to take a credit counseling class. You must do this at least one day prior to filing.
At this point, your attorney will file the paperwork and the case begins.
With an emergency bankruptcy, only a few forms are initially required. Then, you have 14 days to submit all other paperwork.
The automatic stay will also take effect immediately.
Contact Parker & DuFresne For Emergency Bankruptcy Filing
The lawyers of Parker & DuFresne have dedicated their practice to you.
As one of Jacksonville’s most awarded bankruptcy law firms, we believe that our clients deserve the highest quality services.
Our North Florida bankruptcy attorneys stand by you through it all. Schedule a free consultation here. Or call us at 904.606.9069