Bankruptcy is a lifesaver for so many debtors who can no longer cope with high interest rates and large balances, despite their best efforts. In most cases, the bankruptcy process can take several months to complete. Plus, there may be a few weeks of preparation before the actual filing. If you’re facing an urgent financial hardship, and you can’t wait to file for bankruptcy, your attorney may do an emergency bankruptcy filing.
Limits of Emergency Bankruptcy Filings
There is a common misconception that an emergency filing is the same thing as an emergency debt discharge. That is, if you file an emergency petition, you’ll receive an elimination of dischargeable debts in an equally hasty manner. This isn’t the case. The purpose of the emergency petition is to open the bankruptcy case right away, and to complete the other pre-filing requirements after filing.
Reasons for Emergency Bankruptcy Filings
You may be wondering what the benefit is of filing an emergency petition if you can’t get an accelerated discharge. The answer is the automatic stay. This is something that goes into effect immediately once the petition is filed and the case is opened. As long as the automatic stay is in effect, your creditors are legally prohibited from taking any collections actions against you. They cannot call you, file a lawsuit against you, or file a lien against your property. Your mortgage lender cannot start or move forward in foreclosure proceedings, and your car loan lender cannot repossess your vehicle. In short, an emergency bankruptcy filing can save you from further adverse financial situations, and give you the time you need to get your finances straightened out.
Requirements for Emergency Bankruptcy Petitions
Although the majority of the paperwork for the petition can be filed later, there are a few documents that must be filed with the bankruptcy court in order to open the case. These documents are:
- The voluntary petition (your personal information and a financial summary)
- The creditor matrix (list of your creditors)
- Exhibit D (the credit counseling requirement)
You must also pay the bankruptcy filing fee.
Are you facing significant financial hardship and need urgent help in the greater Chicagoland area? Call Cutler & Associates, Ltd. at (847) 961-4572, and one of our bankruptcy attorneys will get right to work on your emergency petition. Our law offices are conveniently located in Aurora, Skokie, and Oak Brook.