Student Loans and Bankruptcy

Is An Emergency Bankruptcy Filing Right For You?

2 February 2016

Roy Sanders

Filling out the reams of paperwork that is normally required for a chapter 7 or 13 bankruptcy filing can mean hours and hours of time. Commonly you must include information that gives the bankruptcy court a complete picture of your financial picture, including debts owed, property owned, and income. There is a provision for those that need to act in a hurry, however. Read on to learn more about emergency bankruptcy filing.

Do You Need an Emergency Filing?

Many people filing bankruptcy are seeking an immediate legal avenue of relief from debt collections, foreclosures, evictions and repossession. The automatic stay provides this relief. Once filed in court, all debt collection must cease and certain other forms of relief is granted for those in danger of losing property.

An Emergency Bankruptcy Package

A portion of the usual full bankruptcy package is completed and filed, normally requiring much less time. Required forms include:

*Creditor's Matrix: a complete listing of all debt owed (banks, credit cards, people, etc).

*Form B-1: Just the first three pages of the petition.

*Form B-21: Social Security number statement.

*Exhibit D: Education statement. Although credit counseling and budget education is required, you may leave it out if you can how good cause to do so. The reason you are filing for an emergency bankruptcy, such as being deprived of a vehicle or place to live, would be considered a good cause. If the bankruptcy accepts your emergency filing without Exhibit D, you must still get the required educational courses before the bankruptcy can become final.

Pay the Filing Fee

For those in dire financial straights, coming up with the $335.00 for a chapter 7 or the $310.00 for chapter 13 filing is likely to be a challenge. Form 3-A should be filed to request that the filing fees be paid using an installment plan, or Form 3B to request that the fees be waived entirely.

The Next Steps

1. Normally, your creditors will be notified by mail of your filing, which puts them on notice to stop all collection actions. You may not have several days to spare, however, if you are in immediate danger of losing property. Contact each creditor by phone and provide them with the bankruptcy case number (and your bankruptcy attorney's phone number, if pertinent).

2. You must complete the remainder of your bankruptcy filing requirements within 14 days of your emergency filing.

3. Ensure that you complete the required educational classes.

For those who desperately need it, an emergency bankruptcy filing could help preserve your property and give you more time to make arrangements. For more assistance, contact a bankruptcy attorney like Flippin Thomas C as soon as possible.

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