When It Won'T Wait: How To File An Emergency Chapter 7
Some consumers watch their bills pile up for months while they wonder if they should file for bankruptcy. Unfortunately, things seldom get better for those consumers, and they might take a sudden turn for the worse. To find what a filer can do to get some immediate financial relief, read on.
The Traditional Way
While bankruptcy is not known to be a quick process, chapter 7 can be relatively quick. The length of time that bankruptcy takes depends largely on the backlog in the local federal district bankruptcy court. Some filers wait about five or six months from the date they file with the federal court till they receive the final discharge in the mail. However, that timeline leaves out the preparation of the bankruptcy package that must be assembled and filed. Bankruptcy lawyers will put it all together for you, but you must provide them with the needed information to do so. The sooner you can comply with your lawyer's requests, the sooner you will find bankruptcy relief.
What Makes Things an Emergency?
If you wait too long to file, you can be in danger of losing assets. Once you file, the automatic stay comes into effect. This legal motion stays creditor and collection actions – which means they come to a stop. Some stays are permanent, but many expire at a certain point. Chapter 7 automatic stay has these powers:
- All court actions against the filer must cease.
- All foreclosure actions and repossession actions must cease.
- No contact between any creditor and filer is allowed.
- Most wage garnishments will come to an end. The exception might be some garnishments triggered by back child support or newer tax debts.
What to Do
Of the above, losing a home or vehicle may prompt many people to seek emergency action:
- Let your lawyer know about any pending legal actions right away.
- You can file part of your bankruptcy package right away to gain relief from the automatic stay. You must still file the remainder of the documents later, however.
- In most cases, you must at least file the voluntary petition (3 pages) and the creditor's matrix, which is a complete listing of your creditors and how much you owe them.
- Pay your filing fees ($338).
- Phone any creditor about to act against you and inform them of the case number.
- File the remainder of the paperwork within 14 days. To get the emergency relief you need, speak to a bankruptcy attorney today
