1. Home
2. Bankruptcy Articles
3. Emergency Bankruptcy Cases

FAQ'S

Wednesday, November 12th, 2008

by Theodore Sliwinski, Esq.

Emergency Bankruptcy Cases

1. What can I do if have to file an emergency bankruptcy, or if I need to file bankruptcy in a rush?

If you have a financial emergency, and if you need to file an emergency bankruptcy or a last-minute bankruptcy case, then contact the New Jersey Bankruptcy Center immediately. We handle emergency bankruptcy cases, and we can provide you with a free bankruptcy consultation.

2. So just what is a bankruptcy emergency?

A bankruptcy emergency depends on your own particular particular financial mess. For the majority of people, it’s considered a financial emergency when your wages have been garnished, your bank account has been levied upon, you expect to have judgment for fraud entered against you, the family court judge has issued a contempt order in a child support case, the repo man is searching for your car in your neighborhood, or if your home is being listed for a sheriff sale in the Star Ledger. These types of situations can often motivate people to file an emergency bankruptcy case. There are other miserable situations that can be considered a personal bankruptcy emergency such as; a pending lawsuit, an upcoming trial, an eviction, or the possibility of a federal tax lien, a turnover action in a collection lawsuit, or the enforcement of a judgment against property.

If you are faced with these types of legal actions, then it is  important to obtain bankruptcy advice from an experienced New Jersey bankruptcy attorney. It is important to be advised of all of your debt relief options if you are facing a severe financial crisis. If you decided to file an emergency bankruptcy, then your case needs to be filed promptly, correctly, and with the appropriate pre-filing requirements.

3. Why should I file an emergency bankruptcy?

Filing for bankruptcy provides you with the legal protection of the powerful automatic stay. The automatic stay stops creditors from taking any further legal action against you. The automatic stay is like using a ray gun or a phaser to immediately stop your creditors dead in their tracks, just like in the old Star Trek episodes. The moment when a bankruptcy case is filed, then the automatic stay goes into effect. Thereafter, most creditors cannot take any further action against you without first obtaining the permission from the bankruptcy court. Most people file a bankruptcy on an emergency basis to stop creditor collections and other legal actions filed against them, such as foreclosure, repossession, garnishment, lawsuits, or an eviction.

4. What are the requirements to file for an emergency bankruptcy?

Whether it’s an emergency bankruptcy or an ordinary bankruptcy case that is filed weeks before a foreclosure sale, an upcoming trial, an imminent repossession, then there are pre-bankruptcy filing requirements. These requirements are mandatory and if not they are completed timely, then your case will get dismissed. The primary requirement that holds most cases up in an emergency bankruptcy case is the requirement of credit counseling. This mandatory pre-filing requirement is supposed to be completed within 24 hours before filing bankruptcy. It’s actually a credit counseling “course” which must be completed with a provider  approved by the U.S. Trustee’s office. The most recent changes to the bankruptcy code actually try to prevent emergency bankruptcy filings.

There are minimum requirements to file for an emergency bankruptcy. In an emergency case the debtor must file the bankruptcy petition, the statement of your Social Security number, and the list of your creditors names and addresses (the mailing matrix). In an emergency case, the debtor does not have to immediately file all of the remaining schedules. The remaining schedules must to be filed within fifteen days after the initial filing date. If these additional schedules are not filed within 15 days after the filing then your case can be dismissed. Also your tax returns must be filed within 30 days after filing or your case can be dismissed.

Waiting for the last minute to file for bankruptcy, or to address  any type of other impending legal problem, often adds tremendous stress to your life. Moreover, last minute filings also increase the chances for making errors. While it is possible to file for an emergency bankruptcy to deal with financial problems that suddenly come about, there are certain legal requirements that must be adhered to before filing for bankruptcy.

In many cases wherein debtors are facing foreclosure of their homes, they will try to work out a repayment arrangement, or forbearance agreement with their mortgage company waiting until the last day or two before the foreclosure sale. Should their proposed repayment arrangement or forbearance agreement fall through or not be accepted (which is very often the case), then filing a chapter 13 on the day of the foreclosure or just before the sale date becomes their last option to stop foreclosure. When this happens, the homeowner might not have enough time to complete the pre-bankruptcy credit counseling course, prepare an emergency bankruptcy petition, and obtain the list of creditors and parties to receive proper notice of the foreclosure.

If you are facing a foreclosure, repossession, a lawsuit, a child support contempt action, the entry of a judgment, a turnover action in a collection case, an eviction, then try not to wait until the last minute before you consider filing for bankruptcy. If you do wait to the last minute to file an emergency bankruptcy, then the New Jersey Bankruptcy Center is here to help if we can. However, if you wait too long before getting help, then some of the powerful benefits of bankruptcy may no longer be available to you.