Once you file for bankruptcy, your creditors will be stopped from collecting debts from you. If you are facing an emergency, you might want to file bankruptcy quickly to prevent certain events from happening. Here are some examples of events that can be stopped by filing bankruptcy:
Things that cannot be stopped by filing bankruptcy:
- Criminal proceedings;
- Some family law proceedings;
- Payment to retirement account loans; and
- Eviction for endangerment or drug use.
Emergency bankruptcy is often filed in a hurry. You might not have enough time to prepare all the required paperwork. The court allows you to start a case by completing the most basic forms. You must submit the remaining forms within 14 days. This process is referred as "skeletal" bankruptcy petition: only the bare bone documents are required.
Before filing Chapter 7 or Chapter 13 bankruptcy, you must receive credit counseling from a court-approved agency. If you are unable to complete it due to true emergency, you can file a Motion for Temporary Waiver. If you are unable to make it because of incapacity, disability, or active military duty, you should file a Motion for Permanent Waiver instead. In general, the court will waive this requirement only in rare circumstance. Therefore, you should always try to complete credit counseling before filing.
Updated: May 2018