A person may need to file an emergency bankruptcy to prevent some particular action by a creditor, like garnishment, repossession, or a foreclosure auction. In such cases, the bankruptcy court allows a bankruptcy case to commence with the filing only of the six-page voluntary petition, without the required accompanying forms and schedules. An emergency bankruptcy is sometimes referred to as a “bare-bones” bankruptcy or “skeletal” filing.
You have very limited time once an emergency petition is filed. Usually, you will have just 7 to 14 days to file the remaining required documents. The clerk of court promptly dismisses any case in which the required forms and schedules are not filed. In addition, the bankruptcy filer needs to have completed a credit counseling session before filing the bankruptcy.
Emergency Bankruptcy and the Automatic Stay
The whole reason to file an emergency bankruptcy is to invoke the protection of bankruptcy’s Automatic Stay. The Automatic Stay immediately stops any collection efforts against the bankruptcy filer, including home foreclosure, vehicle repossession, eviction, wage garnishment, execution sale, tax levy, or utility shut-off. As implied by its name, the Automatic Stay takes effect automatically. Any creditor actions that take place after the automatic stay are void by law. The Automatic Stay protects your property and interests until you can complete and file the rest of the forms.
Lee Legal has assisted in numerous emergency bankruptcy filings. In cases where an emergency bankruptcy is necessary, it is critical that you work quickly and closely with your attorney. Completing the required paperwork and documentation is usually a intensive effort. And an emergency bankruptcy, by its nature, has more pressing deadlines than a regular bankruptcy filing. It is crucial that you return your lawyer’s calls and quickly respond to his or her request for documents.
If you live in Washington, D.C., Maryland or Virginia and want to prevent foreclosure or garnishment, or to stop repossession of a vehicle, you must act quickly. Contact an experienced emergency bankruptcy attorney to discuss your situation.