While it’s recommended to take time in deciding to file bankruptcy to insure procedures are followed correctly, there are situations in which it makes sense to file a petition immediately. Some people wait to begin the filing process but in turn, waiting may make the situation more challenging. With filing for bankruptcy protection right away you can begin part of the process while obtaining protection that may give you more time to plan your next move.
Bankruptcy offers the automatic stay that stops creditors from pursuing collection activity against the creditor. In some cases the stay is temporary but it may give debtors more time to have their situation reviewed while detailing legal options. Whether you file Chapter 7 or Chapter 13 bankruptcy , the protection helps stop legal action pursued against you such as wage garnishment , utility shut off, eviction, tax levy, foreclosure and repossession .
If you are facing a lawsuit or expect to receive property that will become part of your bankruptcy estate, filing an emergency petition may help stop collection activity while providing protection over assets through exemptions. If you recently moved from one state to another, filing an emergency petition may allow you to utilize exemptions from your old state to help retain assets.
Depending on your situation and which chapter you file, you’ll get a better idea of how filing can help improve your situation. If you are filing to stop foreclosure it’s possible to determine a payment plan to help you get caught up on defaulted payments. The filing may also stop the sale of property.