Emergency Bankruptcy Filing
At The Sellers Law Firm, when we file a Chapter 7 bankruptcy or a Chapter 13 debt consolidation there are numerous forms that we are required to file with the bankruptcy court. We are also required to have the debtor bring us 6 months of his/her past pay history and the past 3 years of tax returns. Many times this may take a couple of days for the debtor to be able to gather all of this information. If you are facing a home foreclosure, wage garnishment, or car repossession you may have a situation in which a bankruptcy needs to be filed immediately. This is commonly referred to as an emergency bankruptcy filing, and our Montgomery bankruptcy lawyers are always ready to help you!
When a Chapter 7 bankruptcy or Chapter 13 debt consolidation plan is filed, the automatic stay instantly takes effect. The automatic stay is like an injunction; it prohibits creditors from continuing collection actions and it will stop a wage garnishment, foreclosure, or auto repossession. There are a few exceptions to this rule but they are extremely limited.
To file an emergency bankruptcy petition, you must file the minimum forms required by the court. When the forms are filed, the automatic stay instantly takes effect and your property is protected at that moment from your creditors. Also there are different forms that are required to be filed whether it's a Chapter 7 bankruptcy or Chapter 13 debt consolidation plan.
In a Chapter 7 bankruptcy case you are required to take a court approved credit counseling class. This class is generally available to you online or it may be taken over the telephone or in person. After the class is completed you will receive a Certificate of Credit Counseling. You are also required to file a voluntary petition. This document contains your personal information such as your address, the approximate amount of debt, and the number of creditors that you have.
Furthermore, you are required to file a creditor matrix which is a list of all of your known creditors, and the address in which the bankruptcy notices should be mailed. After these documents are filed you have 14 days to complete and file the remaining bankruptcy forms. If you have a good reason why the forms can't be filed within 14 days you may request an extension for more time. The court must approve this extension before the 14-day deadline. If you missed the deadline then your case will be dismissed by the bankruptcy judge.
For Chapter 13 debt consolidation cases, you have to complete the same credit counseling requirement as in a Chapter 7 bankruptcy. Before you file the emergency petition, you and your Montgomery bankruptcy attorney should look at your income to see if you would qualify for the expected monthly debt consolidation payment that will be required by the Chapter 13 Trustee. The remaining forms are the same as those that are required for a Chapter 7 bankruptcy; also you have the same 14 days to file the rest of your Chapter 13 forms which must include your Chapter 13 repayment plan. Furthermore you must make your first payment to the Chapter 13 Trustee within 30 days of filing your emergency bankruptcy petition. Even if you get extensions to file other forms, you do not receive an extension to pay to make the first bankruptcy payment to the Chapter 13 Trustee. Failure to make this payment can result in the dismissal of your Chapter 13 debt consolidation case.
At the Sellers Law Firm, we are always here to help. All consultations are always free, and we can generally see you within 24 hours. We have four offices located in Montgomery, Selma, Greenville, and Troy. You set an appointment to meet with one of our Montgomery Bankruptcy attorneys by calling us at 334-LAWYERS (529-9377) or use the “text us” link or Contact Form on our website. Remember that doing nothing changes nothing so act today!