Is there any such thing as an emergency bankruptcy? Filing for bankruptcy is a complicated business and even with the help of a bankruptcy attorney, it can take days to collect all the information (and paperwork) required let alone fill out all the forms. Yet there are times when filing for bankruptcy today is your only perceived option.
You can file a petition for an emergency bankruptcy. When filing, you only need to fill out the first three or four pages of a petition, however, the filing fee is close to double the norm and you will need to submit the remaining pages of the petition within seven days.
Why would you need to file an emergency petition for bankruptcy? There are a number of reasons, the main one being the imminent foreclosure on your home or the repossession of your car. Other reasons include pending eviction and wage garnishments that make living impossible. An emergency petition for bankruptcy will bring any action to a stop – it will also cancel out any wage garnishments.
From a business perspective, an emergency Chapter 11 petition may forestall a forced Chapter 7 petition. Under the Chapter 11 petition, your business will remain open allowing you to trade your way out of bankruptcy. If a creditor forces a Chapter petition, then your business will be closed and the assets sold off. Even if you manage to have the Chapter 7 converted to a Chapter 11, it could be too late if the business has been closed for several days.
A word of warning - you must have completed the pre-bankruptcy debtor counseling program before you can file for bankruptcy. You have seven days (following the petition for emergency bankruptcy) to file a certificate showing you have undertaken this counseling. You will also have to file the remaining documents at this time.
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- What Are Pre-Bankruptcy Counseling Certificates
- If A Whole Town Can File For Bankruptcy, So Can You
- The Essential Steps To Filing For Bankruptcy
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