How are Emergency Bankruptcy Petition Different?

: Chris Lee Law Firm

  Filed under: bankruptcy_articles

UrgentSerious debt can come on at a moment’s notice or you may have waited too long to files until your debt situation was more serious. On either occasion, it may become necessary to streamline a bankruptcy and file as an emergency.

File a Bankruptcy Petition

While filing a bankruptcy petition is simple, it’s not easy, because of the sheer amount of information that needs to be collected, documented, and double checked. It’s a time-consuming process rivaling filing for taxes, as you must be 100% accurate and include all assets, income, and debts, including money that you might receive within 180 days of filing your bankruptcy petition. When filing, your “bankruptcy packet” includes a voluntary petition for individuals filing for bankruptcy form, proof of completion of a pre-bankruptcy credit counseling course, and your bankruptcy schedules. Bankruptcy schedules are forms labeled A/B through J that must also be completed which outline every detail of your financial life. Because mistakes on your bankruptcy schedules can cost you time and money at best, or make you criminally liable for bankruptcy fraud at worst, you should consult a Fort Worth bankruptcy lawyer to help you fill the forms out property and to answer any legal questions you have about the petition.

How Emergency Bankruptcy Petitions Work

Emergency bankruptcy petitions are the last resort available to debtors who need to file bankruptcy immediately in order to prevent a foreclosure, eviction, lawsuit, or repossession. The US Bankruptcy Code allows you, in these situations, to file a very limited petition that establishes an automatic stay and prevents you from having your property seized as collateral under a secured lending agreement. When you file an emergency bankruptcy petition you are only required to present your bankruptcy petition form, your creditor matrix, statement of social security number, and certificate of credit counseling, with the understanding that you’ll turn in the remainder of the paperwork within 14 days.

Disadvantages of an Emergency Bankruptcy

Filing bankruptcy in a hurry should be avoided if possible as it’s an intensive process with numerous forms to fill out. Rushing the process makes your petition more prone to mistakes which could result in your bankruptcy case being dismissed. If your bankruptcy case is dismissed, you lose your automatic stay and the bankruptcy filing fee you paid, leaving you in the same debt position you started off with, but with less time and money. Once you file bankruptcy you are initiating a process that will have mandatory next steps

Contact a Texas Bankruptcy Lawyer

As with any situation in which your legal rights need to be protected, you should consult a Fort Worth bankruptcy lawyer for help in filing a normal or emergency bankruptcy petition. An experienced bankruptcy attorney will be able to help you identify possible pitfalls for your situation in bankruptcy court and ensure that you eliminate the maximum amount of debt allowed by the US Bankruptcy Code.

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