Those who have been through the experience likely already know about the sheaths of paperwork that must be filled out and filed for a Chapter 7 bankruptcy. It can take a long time to complete the paperwork, and this requirement can only add to the stress of the situation. For people in a big hurry, there is little-known method of filing a Chapter 7 bankruptcy that trims the required documentation considerably. To get more info on filing this quick and short version of bankruptcy, read on.
The need for an emergency filing
The answer to that question can be summed up in two words: automatic stay. The "stay," in this instance, refers to the cessation of debt-collection activities, including phone calls, letters, utility shut-offs, foreclosures, evictions, and repossessions. The effect is immediate (and "automatic") with the filing of the bankruptcy petition. If you are about to suffer a loss of property, there is simply no more powerful stop sign for these actions than that of the automatic stay. It should be noted that whether you are filing for a "regular" Chapter 7 bankruptcy or an emergency Chapter 7, you may need to provide those creditors who are about to take action against you with your federal case number, since there may be a delay in notification of your filing.
Your emergency bankruptcy package
While the amount of paperwork required to file in a hurry is reduced, you must still complete the following minimum documents:
Creditor's Matrix: this is a listing of all of the people and institutions to which you owe money, including people, banks, mortgage companies, and so forth
Form B-1: Just the first three pages of the petition
Form B-21: Social-security number statement
Exhibit D: Statement of credit counseling. You must now get credit counseling and include proof of that counseling with your bankruptcy petition. If you can show proof of a true emergency need to temporarily delay that counseling, you may be able to file without it. For example, if you are about to lose your home to foreclosure, you may be able to show that your filing was too quick to allow time to get the counseling.
The rest of the package
Once you file your emergency package, you have 14 more days to get the remainder of the documents filed with federal court before your case is dismissed for being incomplete.
Speak to a bankruptcy attorney such as Greg Dunn Bankruptcy Attorney for more information.