For many people there’s a particular trigger that makes them pick up the phone and call a bankruptcy attorney. Here’s a small list of some reasons why people call a bankruptcy lawyer.
- Foreclosure notice
- Wage garnishment
- Bank levy
- Creditor harassment
Many people in the above situations know in the back of their mind that they should start thinking about bankruptcy, but for many it takes collection action for them to pick up the phone. Unfortunately, by waiting for collection action many of these people need to file an emergency bankruptcy petition. For instance, if someone waits for a lawsuit before calling a bankruptcy attorney they have a limited amount of time to file bankruptcy. If they wait too long the creditor may receive a default judgment and take some form of collection action such as wage garnishment.
If a client waited for imminent collection action before calling a bankruptcy attorney they may need to file an emergency bankruptcy petition. The emergency bankruptcy petition will start the bankruptcy and invoke the protections of the automatic stay, which essentially stops most forms of collection such as phone calls, wage garnishment, or the continuation of a lawsuit. After filing the emergency bankruptcy petition the client and their attorney will have a limited amount of time to file the balance of the required documents. If the remainder of these required documents are not filed on time the case will be dismissed.
Hindsight is 20/20, but if there’s one lesson to be learned it’s that people in debt should explore their options as early as possible. Waiting until you absolutely need to file bankruptcy is rarely a good idea. Be proactive and learn about your bankruptcy options before you absolutely need to file. By exploring your options you can avoid costly missteps, save-up for a bankruptcy attorney, and get started on the bankruptcy paperwork so that you’re ready to file when it’s in your best interest.