Taking Quick Bankruptcy Action
ShareIf you've filed for bankruptcy in the past, you may already be familiar with the relatively hefty paperwork burden that comes with the filing. Fortunately, there is a little-known trick that can allow you to file what is known as an emergency chapter 7 bankruptcy. If you need some quick relief, read on to find out more about filing this quick and easy emergency bankruptcy using chapter 7.
What's Your Hurry?
While it's important to carefully consider both the good and the bad points of a chapter 7 filing, the longer you procrastinate the filing the worse your financial situation could be. Unpaid bills can lead to lawsuits, wage garnishment, property liens and constant harassment by bill collectors. Even worse, you might begin to be threatened with the loss of property through foreclosure, eviction and repossessions.
The Powerful Automatic Stay
This aspect of a chapter 7 filing is nearly magical in its powers. This valuable perk of filing is automatic, you need not do another thing to stop certain legal actions that may be in progress or about to be commenced against you. In this instance, you can (at least temporarily) stop utility shut-offs, evictions, repossessions of vehicles, foreclosures and more. Additionally, all bill collection activities should come to an immediate halt with your federal filing. The automatic stay is an important aspect of the relief found by an emergency chapter 7 filing, but this form of relief exists for all chapter 7 filings.
The Emergency Bankruptcy Package
The key factor that gives the emergency bankruptcy filing its benefit is the considerable reduction in paperwork that must be filled out and filed. You can file with the few quick forms below, and come back later to complete the job:
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Creditor's Matrix: This is undoubtedly the most important document in a bankruptcy filing, since it lists your creditors, contact information, amounts you owe them and more.
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Form B-1: The first 3 pages of the petition.
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Form B-21: The Social Security number statement.
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Exhibit D: In most cases, filers must undergo a class before they can file that consists of filing out a budget. You may be able to get out of taking this class before you file the emergency paperwork if you can show good cause for proceeding without it. For instance, if you are about to have your home foreclosed on that might constitute good cause. You will still need to come back and take this class and one other class concerning personal finances before your bankruptcy is final.
Complete the Package
Once you have filed your emergency paperwork, you must follow up with the remainder of the package or your bankruptcy is at risk of being dismissed. You have 14 days after the filing to complete it.
Speak to a lawyer for bankruptcy for more information.