You may need to file same day bankruptcy if you are receiving threatening telephone calls from banks and other creditors. These calls can quickly escalate into foreclosure, wage garnishment and repossession.
The stay of collection efforts that goes into effect with the filing of a Chapter 7 or Chapter 13 bankruptcy petition might not come soon enough to prevent the loss of a home or car and prevent part of a paycheck from being seized. Emergency bankruptcy filings are available when situations arise that require immediate action.
Once the decision has been made to file for bankruptcy, an attorney representing a debtor must prepare the petition to be submitted to the bankruptcy court. For most people, gathering all of the information and documentation a bankruptcy attorney needs to prepare the petition can take time and make same day bankruptcy filings impossible under normal circumstances.
Filing a bankruptcy petition triggers an automatic stay that prohibits the continuation of collection efforts by most creditors while the bankruptcy proceeding is pending. The stay goes into effect as soon as the petition is accepted for filing, and it applies to most collection efforts, including:
Debtors facing imminent seizure of property by a creditor might not have the time to wait for the filing of a full bankruptcy petition to get the benefits of the automatic stay. Emergency bankruptcy filings are available for those individuals requiring an immediate stay. Same day bankruptcy filings can also be accomplished as long as the debtor cooperates and participates fully with the attorney.
Chapter 7 and Chapter 13 same day bankruptcy filings are accomplished through the use of an emergency petition containing fewer forms and less information than is required for a full petition. However, a debtor cannot file an emergency petition until after completion of a court-approved credit counseling class. Only those individuals who are disabled or serving in the military in a combat zone are exempt from taking the class. Some of the counseling courses are available online and over the telephone.
Individuals taking advantage of emergency bankruptcy filings must commit to fully participate with their lawyer to complete the filing of a full petition within 14 days. Failure to do so can lead to dismissal of the case and loss of the stay.