Filing for bankruptcy can mean hours spent filling out reams of paperwork, but you should know that there is a quicker solution that can get you some immediate relief from debt collections. Most bankruptcy packages includes a complete list of property owned, debts owed, income, and extensive personal and financial information. If you need to take quick action, read on for more information about emergency bankruptcy filings.
Why Would You Need an Emergency Bankruptcy Filing?
One of the main benefits of filing for bankruptcy is the automatic stay. This powerful legal instrument serves as a virtual stop sign to nearly all debt collection activity, including repossessions of vehicles, foreclosures on homeowners and evictions of renters. Once you have filed your bankruptcy petition with the courts, the automatic stay is put in place. For those in danger of losing their vehicles or home, there is no more powerful a tool to prevent that loss than the automatic stay.
What Forms Are Required for an Emergency Filing?
Only a portion of the usual full bankruptcy package must be completed and filed, requiring far less time. The forms include:
- The creditor's matrix: a list of all creditors (people, banks and credit cards).
- Form B-1: The first 3 pages of the bankruptcy petition.
- Form B-21: Social Security number statement.
- Exhibit D: Credit counseling education statement. You must either get the counseling and show proof, or be prepared to show good reason. If you are in need of filing for an emergency bankruptcy, you likely do have a good reason to have your bankruptcy petition accepted by the court with the Exhibit D, such as needing the automatic stay to prevent your family from being made homeless. It's important to note that if your petition is accepted without Exhibit D, you must still get the counseling, even if at a later date.
Pay the Fees
Unfortunately, you must pay the filing fees or your petition will not be accepted by the clerk's office. Chapter 7 filling fees are $335.00 and for chapter 13 they are $310.00. For those unable to gather the full amount, however, there is an option to request an installment plan using Form 3A, or to request a full waiver of fees using Form 3B.
After the Filing
To prevent punitive actions from your creditors (foreclosure, repossession, eviction) you must contact each creditor yourself and provide them with your bankruptcy case number. Most creditors will be notified by mail by the bankruptcy court, but this could take weeks.
It's also important to note that you must now complete your bankruptcy filing by finishing the complete bankruptcy package within 14 days of your initial filling.
If you are desperate need of debt relief, contact a bankruptcy attorney, like Greg Dunn Bankruptcy Attorney, to assist you in filing your emergency bankruptcy petition.