How an Emergency Bankruptcy Petition Can Protect You From an Aggressive Debt Collector

How an Emergency Bankruptcy Petition Can Protect You From an Aggressive Debt Collector

Why Filing For Bankruptcy As An Emergency Might Be Your Best Option

An emergency bankruptcy petition is a type of bankruptcy filing that expedites the initial stages of the bankruptcy process. Also known as a skeleton bankruptcy, an emergency bankruptcy petition will trigger an automatic stay, which is a legal action that will immediately stop creditors and debt collectors from contacting debtors. Emergency bankruptcy petitions can be filed as part of either a Chapter 7 or Chapter 13 bankruptcy.

Individuals who file an emergency bankruptcy petition will receive an automatic stay before all of the documentation is completed. This means that creditors are legally prohibited from attempting to collect debts. If you’re in an urgent situation with debt, such finding your wages garnished, facing eviction, or in the midst of a pending repossession, filing an emergency bankruptcy petition might be a good choice to temporarily pause those actions and begin resolution. The best way to begin the process of emergency bankruptcy filing is by contacting an experienced Gilbert bankruptcy law office who can assist with the necessary paperwork.

How an Emergency Bankruptcy Petition Can Protect You From an Aggressive Debt Collector

When To File an Emergency Bankruptcy Petition

Emergency bankruptcy should be kept to urgent situations. This means you’ll need a legitimate reason for filing as an emergency. Situations that may benefit from emergency bankruptcy include:

  • Facing wage garnishment
  • When creditors are levying your bank accounts or property
  • When a home foreclosure is impending
  • When you’re facing eviction
  • During an imminent car repossession
  • When facing a lawsuit from creditors

Sometimes it’s challenging to know when to file for emergency bankruptcy. If you’ve received notice from a debt collector that action will be taken against you, such as repossessing property or filing a lawsuit against you, it’s imperative to contact a Gilbert bankruptcy attorney immediately to discuss your options.

Although filing for bankruptcy won’t fix everything right away, it can temporarily stop the eviction, foreclosure, or repossession processes so that you have time to determine your next steps. It can be extremely relieving to be freed from the stress of aggressive debt collectors and be able to make plans for the future.

How Do I File For an Emergency Bankruptcy?

In order to start an emergency bankruptcy filing, contact an experienced bankruptcy lawyer who can assist with the basic documentation and paperwork. You will need to submit:

  • A voluntary bankruptcy petition with your contact information and indication of which chapter of bankruptcy you are filing
  • Proof of completion of a mandatory credit counseling session
  • A creditor matrix, which is a list of all of your creditors and their contact information, typically drawn from a credit report
  • Form B121, which will confirm your social security number
  • Any necessary fees and costs of filing

Your Gilbert bankruptcy attorney will guide you through the remaining paperwork that will need to be filed within 14 days of your emergency bankruptcy petition. If you fail to do so, your case may be dismissed, and it will be more difficult to file again if you choose to do so. If you attempt to file for bankruptcy again within a year of a dismissal, you’ll only be protected from creditors for 30 days unless the court chooses to extend the automatic stay. You’ll need to go to court with your attorney and explain why you need the automatic stay extended. It’s always best to follow the established bankruptcy procedures to avoid complications in the process.

What Is Abuse Filing?

In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which protects creditors from abusive bankruptcy filings and adds additional guidelines for debtors. Sometimes, people file emergency bankruptcies as a way to hinder debt collection, foreclosure, or eviction with no intention of actually going through the bankruptcy process. This is known as abuse filing.

Other situations that the court may consider to be an abusive bankruptcy filing include:

  • The debtor fails to appear in court as summoned
  • The debtor fails to comply with court orders
  • The debtor fails to make payments to their bankruptcy trustee as agreed upon
  • The debtor otherwise fails to comply with the bankruptcy process

Individuals who file repeated bankruptcy cases that are dismissed for lack of cooperation with the bankruptcy proceedings, especially if it seems as though those cases were filed merely to hinder or delay other legal proceedings or debt collector actions, may be prevented from filing again for a period of time.

Are You Wondering If Emergency Bankruptcy Is Right For You?

Aggressive debt collectors can feel overwhelming, but you don’t have to face them alone. Contact the trusted attorneys at Gilbert Bankruptcy Lawyers for assistance in navigating the complexities of bankruptcy and debt. We have worked with hundreds of clients in difficult situations to find relief, resolution, and a fresh start with a bankruptcy filing. Gilbert Bankruptcy Lawyers will guide you through every step of the process and provide representation, legal advice, and reassurance. Get started with freedom from debt collectors by scheduling your confidential consultation with us today!

Gilbert Bankruptcy Lawyers
Office: 480-448-9800

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