Why File an Emergency Bankruptcy?

Sometimes you just don’t see mountains of debts coming your way. Unexpected financial problems like credit card debt,  medical bills, loss of monthly income can overwhelm you. You did not realize that your home was being foreclosed 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.

Emergency bankruptcy is defined as the filing of bankruptcy without having to undergo the usual filing process. Emergency bankruptcy is usually done in order to stop upcoming activities such as wage garnishment, foreclosure, or repossession. This action kickstarts automatic stay which stops all collections and gives the filer ample time to submit the bankruptcy forms. People who typically file for emergency bankruptcy are in the depths of financial distress and are at risk of losing a lot. 

Do you need to file for emergency bankruptcy? If so, it is best to have bankruptcy lawyers from West Virginia by your side. A bankruptcy lawyer can explain concepts that seem foreign to you and offer the representation you need. Our law office serves clients in Wheeling, New Martinsville & Clarksburg

Chapter 7 Emergency Bankruptcy Filing

The bankruptcy code requires 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 an extension 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. Let a bankruptcy attorney help you in your personal bankruptcy filing.

Chapter 13 Emergency Bankruptcy

You have the credit counseling requirement much like in filing 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 some 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 on time, the Chapter 13 trustee can ask the bankruptcy court to dismiss your bankruptcy case.

What Do I Need for an Emergency Bankruptcy?

Before you file for emergency bankruptcy, you have to follow certain standards to be considered. Although the criteria for emergency bankruptcy is quite attainable due to minimal requirements and filing, it still pays to be sure. Here are some things to keep in mind before filing for emergency bankruptcy:

Be Sure that You Meet the Qualifications

If you are filing for Chapter 7 emergency bankruptcy, be sure that you pass the means test and you meet the timing requirements. If you filed for bankruptcy in the last 8 years and received a discharge, you could get denied. If you happen to have not been discharged and were dismissed within a year of filing, the automatic stay will only take effect for 30 days after filing. An experienced bankruptcy attorney can help make sure that you are doing everything correctly.

Accomplish the Credit Counseling Course

Before filing for emergency bankruptcy, you must first complete the court-approved credit counseling course within six months before filing your bankruptcy. There is an exception to this rule, however, namely filing without having completed credit counseling if the individual has been trying to get credit through a counseling provider. 

Complete the Required Forms

In order to file for emergency bankruptcy, make sure you have accomplished the following:

  • Form 101
  • Creditor Matrix
  • Form 121

File the Case and Pay

Filing fees are typically paid at the same time you file for Chapter 7 emergency bankruptcy. There are options that allow for waiving or installment methods of payment. If you earn less than 150% of the federal poverty guidelines, then your fee can be waived. 

If you are filing for emergency bankruptcy, you might find bankruptcy law a bit intimidating which is why consulting with Wheeling, WV bankruptcy lawyers is the smartest move you can make when in this kind of scenario. 

How Do I Notify Creditors About Emergency Bankruptcy?

If you’re undertaking this process, you would need to stop a collection process since the court isn’t responsible for sending out notifications to creditors. Enlist the aid of a bankruptcy attorney to help you with notifying creditors should you need to stop wage garnishment, foreclosure, and repossession. 

Seek Legal Advice From Wheeling, WV Bankruptcy Lawyers

Are you attempting to file for an emergency bankruptcy in order to stop the process of a wage garnishment, foreclosure, or repossession of personal property? Or are you about to declare bankruptcy? If you are, know that you can always count on bankruptcy lawyers to walk you through the process. From filing your documents to dealing with creditors, and stopping creditor harassment, bankruptcy lawyers will be there for you every step of the bankruptcy process. Contact us at our law firm, Thomas E. McIntire and Associates to book an appointment. Having bankruptcy lawyers by your side helps steer you towards the best possible outcome for debt relief and a fresh start.