The bankruptcy code allows for special emergency circumstances and permits debtors to file an emergency bankruptcy petition when all of the documents which are normally required or not immediately available.
A bankruptcy petition is normally somewhere between 40 and 80 pages of information. Sometimes all of this information is not readily available when a bankruptcy must be filed. An example would be a bankruptcy that needs to be filed in order to stop an imminent sheriff sale or foreclosure. If a debtor waits too long to get to a bankruptcy attorney, there may not be enough time to put together the full petition. Luckily, under the Bankruptcy Code less than the full petition can be filed in order to stop the sheriff sale or foreclosure by applying the automatic stay of bankruptcy.
The automatic stay stops all creditor actions including collections and any legal actions, such as sheriff sales and foreclosures. Therefore, there are times when filing is absolutely necessary. But, what is required to file an emergency petition?
The debtor and his or her attorney must file three things. First, the cover sheet of the voluntary petition must be filed. This includes basic information such as the debtor’s full name, address, and Social Security number. Second, a full creditor matrix must be filed. This means the debtor must submit a full list of all of their creditors. Finally, the first bankruptcy course must be completed and uploaded to the court. This course usually takes about an hour-and-a-half to file, so you must get it done immediately. Once these three documents are filed, the bankruptcy is considered to be started, and the automatic stay will protect you from any creditor actions.
However, it is important to note that the bankruptcy must be completed in full within 14 days, or the bankruptcy will be dismissed. At that point, the automatic stay would be terminated as well, and any legal action against the debtor could continue. So, there will be no time to waste.
If you think you may need to file bankruptcy soon, do not wait to speak with a bankruptcy attorney. Even though the emergency petition can provide bankruptcy relief on short notice, you should not count on an attorney being available immediately before your case needs to be filed. Call us at 412-414-9366 to discuss your current situation and see if bankruptcy is a good option for you.