What is an Emergency Bankruptcy Filing and how is it done?

The Bankruptcy Code allows you to file an emergency Chapter 7 or Chapter 13 Bankruptcy. You just have to file the following documents:

1. Voluntary Petition;

2. Your Credit Counseling Certificate; and,

3. Your Creditor Matrix or a list of all of your creditors.

All of the rest of your schedules and statements have to filed within 14 days of your emergency filing date.

The great benefit of filing an emergency petition is that you get the benefit of the “Automatic Stay.” The automatic stay is an injunction or order that prevents your creditors from engaging in any collection activity. The automatic stay stops phone calls, letters, law suits and garnishments. It is an extremely powerful tool for certain situations. It stops foreclosure sales and any other lawsuits including collection actions and land contract forfeitures.

The hardest part of filing an emergency bankruptcy is that you have to put together the list of all your creditors. The purpose for this is that your creditors are required to get notice of your filing.

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