September 14th, 2009 by Reed Allmand 
If you’re facing foreclosure, filing an emergency bankruptcy can stop the foreclosure process in its tracks. Chapter 7 and Chapter 13 bankruptcy protect the debtor’s assets with an automatic stay that forbids creditors from taking any actions against the debtor in order to collect on a debt. Automatic stay stops foreclosures, lawsuits, wage garnishments, bank account seizures and any other creditor actions to collect a debt.
How Emergency Bankruptcy Works
If a debtor is facing foreclosure, lawsuits, wage garnishments or other asset seizure, he/she can contact a bankruptcy attorney and request a emergency bankruptcy filing. The bankruptcy attorney will collect the necessary documentation from the debtor and file a 3 page petition with a list of the creditors at the bankruptcy court. Once the 3 page petition is filed an automatic stay goes into place stopping all creditor actions against the debtor. If the creditors violate the automatic stay, they could face legal penalties. After the emergency bankruptcy petition is filed with the bankruptcy court, the debtor and his/her bankruptcy attorney has 15 days to file the completed petition. If the completed bankruptcy petition is not filed with the bankruptcy court within 15 days after the emergency bankruptcy filing, the bankruptcy case could be dismissed.
Remember, you must still go through the credit counseling requirement even with the emergency bankruptcy filing. If you fail to go through credit counseling before filing your bankruptcy petition, your case could be dismissed. If you’re facing foreclosure or other asset grabs by creditors, please speak with a Dallas-Fort Worth bankruptcy attorney on how an emergency bankruptcy filing may help you.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
View all posts by Reed AllmandSubscribe
Subscribe to our e-mail newsletter to receive updates.
