How to File a Bankruptcy Petition in an Emergency

Facing large amounts of debt can be a scary experience, especially when it feels as though you have nowhere to turn to or nothing that will alleviate your financial problems. When burdened by financial crisis, though, one viable option is filing bankruptcy. Filing bankruptcy can give you an opportunity to start your financial plan anew, and can put an end to harassment from creditors.

A bankruptcy filing requires filling out multiple forms, and can take months to complete. If you need bankruptcy protection immediately, know how to file a bankruptcy petition in an emergency. An emergency bankruptcy petition (also referred to skeleton bankruptcy filing)  will provide you with an automatic stay, or the immediate prohibition of creditors harassing you.

For instance, our firm has helped many folks with an emergency bankruptcy filing to stop a home foreclosure of their house.  Not only will this Chapter 13 bankruptcy allow you to prevent foreclosure, but it will also allow you to essentially set up a plan to get current with your mortgage payment.

When should a person file an emergency bankruptcy petition? 

Filing bankruptcy can harm your future finances and credit score, but can often be necessary for a person facing serious financial hardship. (and our firm does not believe your bankruptcy filing dooms your credit)  If you do have to file bankruptcy, doing so in the normal timeframe is usually preferable, as you’re granted more time to gather documents and properly fill out forms.

However, if you are facing an eviction, the foreclosure of your home, a car or other property repossession, know how to file a bankruptcy petition in an emergency to obtain an automatic stay.

Forms Necessary for Filing an Emergency Bankruptcy Petition 

The first thing that you should do is double-check with the courts to make sure you have all the necessary forms you need to file your emergency bankruptcy petition also referred to as your skeleton filing.  The forms required are Form 1 (Voluntary Petition), a Form 21 (Statement of Social Security Number), Form 201B (Certification of Notice to Individual Consumer Debtor), and a Verification of Creditor Matrix and Creditor Matrix. In some cases, an Order Dismissing Chapter 7 Case will also be required.

According to U.S. Bankruptcy Court, Northern District of Texas, for an emergency Chapter 13 filing, a filing fee of $313 is also required, or an application for the fee to be paid in installments, or an application for a fee waiver. For an emergency Chapter 7 filing, the fee is $335. You will also need to file a certification of credit counseling. If you have not received credit counseling, you will have to file a motion either exempting you from credit counseling or explaining why you did not receive it.

Should your Emergency Filing be filed as a Chapter 7 or Chapter 13 Bankruptcy?

The choice is yours, but our firm has a specific approach. We generally advise against filing for Chapter 7 bankruptcy in emergency situations. Our main concern is to protect your assets.

In an emergency bankruptcy situation, there’s often not enough time to be completely thorough. This makes filing under Chapter 7 risky. You might accidentally overlook an asset, like a forgotten piece of property or a share in a family home.

We’ve seen instances where people forget about assets like these, especially if they’re not currently using or thinking about them. Filing under Chapter 7 in such a rush could lead to losing these overlooked assets.

In contrast, Chapter 13 bankruptcy in an emergency is less risky. It doesn’t have the same danger of losing property. That’s why we recommend Chapter 13 for emergency bankruptcy filings.

Even if you’re leaning towards Chapter 7, starting with Chapter 13 in an emergency is safer. Later, once all the paperwork is done and you’ve had time to carefully consider everything and review all your remaining bankruptcy forms, we can switch your case to Chapter 7 if it’s still the best choice for you.

Filing an Emergency Bankruptcy Petition in a Timely Manner 

When filing an emergency bankruptcy petition, two things are very important: first, that you include all required documents in the application (and that they’re filled out completely), and second that you submit any additional required forms within 14 days. Failure to do either will most likely result in the dismissal of your case. If your case is dismissed, you will have the opportunity to file again.

Is a lawyer necessary when filing an emergency bankruptcy petition? 

While it is possible to file an emergency bankruptcy petition without an attorney, doing so is not advised. In fact, because filing bankruptcy has long-term financial consequences, hiring a bankruptcy attorney is highly recommended.

A bankruptcy lawyer can explain many confusing parts of the bankruptcy process in Texas.

• explaining the different types of bankruptcy relief available;
• deciding whether or not filing an emergency petition is the best thing for you;
• discussing how to file a bankruptcy petition;
• outlining what you should expect after you file your bankruptcy case;
• and, helping you to gather all of the necessary forms and documents required under the bankruptcy code.

Need Help With Your Emergency Bankruptcy Filing?

Have you missed mortgage payments, and your house is scheduled for the foreclosure auction?   Has a collection action led to a lawsuit being filed against you?  If you are experiencing this or any other financial burden, and you are considering filing bankruptcy, contact our debt relief law office and get scheduled to speak to an experienced bankruptcy attorney.  To get started today by setting up a free consultation, call us now at 888-584-9614.