Why File an Emergency Bankruptcy?
Sometimes you just don’t see bad things coming your way. You did not realize that your home was being foreclosed upon in 2 days. You did not realize that the lender would get a default judgment against you when you did not file a formal written answer to the complaint and summons that was served on you or that you refused to accept via certified mail. Now the creditor has a judgment against you and has started garnishing your wages. Sometimes it is necessary to file an emergency bankruptcy petition to stop bad things from happening to you. When you file for bankruptcy, debt collection must stop. This is called the automatic stay. Most of the time the automatic stay prohibits creditors from continuing collection actions against you.
Chapter 7 Emergency Bankruptcy Filing
The bankruptcy laws require you to take a court-approved credit counseling class unless you are disabled, physically impaired to the extent that you cannot take a class or in an active combat zone. This class is generally available online and in most cases over the telephone. After you take the class and pass a short quiz, you will receive a certificate of credit counseling.
In order to start your case and get the benefit of the automatic stay, you must file, a few documents and pay a filing fee of $335. After you file the initial forms, you have 14 days to complete and file the remaining bankruptcy forms. If you have not filed the remaining forms after 14 days, you can file a request for more time with the bankruptcy court. If the court approves this, you will receive a new deadline. If you miss the first deadline without asking for more time or you miss the second deadline, the court will dismiss your bankruptcy case.
Chapter 13 Emergency Bankruptcy Filing
You have the same credit counseling requirement as in a Chapter 7 bankruptcy. You do not have to verify whether your income qualifies, but you need to make sure that your income is regular enough to allow you to make monthly plan payments to the Chapter 13 trustee. In order to start your case and get the benefit of the automatic stay, you must file, a few documents and pay a filing fee of $310. Just like in a Chapter 7 emergency filing, you have 14 days to file the rest of your Chapter 13 bankruptcy forms, including your Chapter 13 repayment plan. You must make your first plan payment to the Chapter 13 trustee within 30 days of your initial emergency bankruptcy filing, even if you get extensions to file your other forms. If the first payment is not received in time, the Chapter 13 trustee can ask the bankruptcy court to dismiss your bankruptcy case.
If you are facing foreclosure, repossession, wage garnishment, bank levy or another emergency financial situation, an emergency bankruptcy filing may give you time to regroup without the fear of creditors seizing your property or taking your wages. The West Virginia bankruptcy attorneys from Thomas E. McIntire & Associates, LC can help. Don’t wait until it is too late. Call today for a free consultation.