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What is an Emergency Bankruptcy Filing?

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On some occasions, debtors must act quickly to stop a creditor’s collection action such as garnishment, foreclosure, or repossession. In that case, quickly declaring bankruptcy may be beneficial. When a Debtor files a case, the court issues an automatic stay, which prevents most creditors from pursuing recovery efforts against you. However, completing all the bankruptcy forms takes time. If time is of the essence, you can file an emergency bankruptcy to obtain an automatic stay and file the remaining documents afterward.

An emergency bankruptcy filing is filed without any of the requisite paperwork to avoid a collection proceeding that is about to happen, such as a foreclosure, repossession, or wage garnishment. With an emergency bankruptcy filing, the automated stay is activated, halting all collection actions. The filer gets some time to complete the remainder of their bankruptcy forms. If the filer does not meet the deadline, the bankruptcy is dismissed, lifting the automatic stay.

What Will You Need?

When completed, the average bankruptcy petition will likely exceed fifty pages. However, if you are undergoing a foreclosure auction, repossession, wage garnishment, collection lawsuit, or a similar time-sensitive issue, completing all of the paperwork before the action can be impossible.

When you need to file a quick bankruptcy, you can get your bankruptcy forms filed online fast. You will need the bankruptcy petition, which contains general information about yourself, the creditor mailing list, a certificate of credit counseling, and the court filing fee.

Notify the Creditors

If you are using this method, you’ll probably need to halt a collection proceeding. Since it can take over a week for a bankruptcy notice to go out, you cannot rely on the Court to notify your creditors. As a result, whether you need to avert a foreclosure, repossession, wage garnishment, or lawsuit proceeding, you should contact the creditor right away. Include the court where you filed, the case number, and the date you filed.

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