What Is an Emergency Bankruptcy Petition?
An emergency bankruptcy petition allows you to file a bankruptcy much faster than normal.
Filing an emergency bankruptcy petition isn’t always recommended, but you still have the option of filing a bankruptcy case on short notice if you find yourself in a true emergency, such as:
- A home foreclosure
- Wage garnishment
- Car repossession
- Eviction
You may not have any other choice. The emergency petition requires only the most essential forms to be filed in order to gain the protection of the automatic stay. The automatic stay protects your property, assets, and gives you additional time to file the rest of the bankruptcy forms necessary. It can even some time require that creditors return property that was recently repossessed or levied.
The Emergency Bankruptcy Petition follows different guidelines when being filed for Chapter 7 Bankruptcy vs. Chapter 13 bankruptcy. We have outlined the guidelines below.
Filing Emergency Bankruptcy – Chapter 7
Before you file for an emergency Ch 7 bankruptcy, bankruptcy law requires you to take a court-approved credit counseling class. Those disabled, serving in a combat zone, or physically impaired to the extent where they can not make it to the course are exempt. The credit counseling course may be taken online, in person, or in some cases over the telephone. Once the class has been completed you must take a quiz before you receive a certificate of credit counseling. Your certificate must be dated at least one day before the date of your bankruptcy filing.
You should also look at the means test guidelines to see if you are likely to qualify for Chapter 7 bankruptcy.
To get the protections of the automatic stay, you must file these documents at minimum: creditor matrix with verification, voluntary petition, and certificate of credit counseling, and Exhibit D, if necessary.
You will have 14 days to file the rest of your Ch 7 bankruptcy forms after your bankruptcy case has been filed.
Filing Emergency Bankruptcy – Chapter 13
Before filing for Ch 13 bankruptcy you must also complete the credit counseling course as required for Ch 7. In Chapter 13 you are not required to verify your income, but you will be required to make monthly payments, so making note of your monthly finances may be a good course of action.
You have 14 days to file the rest of your Ch 13 bankruptcy forms after the automatic stay has been granted. This includes your Chapter 13 repayment plan. You are required to make your first payment within 30 days of the initial emergency bankruptcy filing, regardless of extensions granted for the filing of the other bankruptcy forms.
If your first payment has not been processed within the first 30 days, the Chapter 13 bankruptcy trustee can request the bankruptcy court dismiss your bankruptcy case!
If you’re thinking about filing an emergency bankruptcy petition for either Chapter 7 or Chapter 13 bankruptcy contacting a Los Angeles Bankruptcy Attorney may be in your best interest. Contact a representative at Ure Law Firm for a free consultation.