Roseville Bankruptcy

Emergency Bankruptcy Filing

An emergency bankruptcy involves the filing a “bare bones” bankruptcy petition on an expedited basis. Many people who file an emergency bankruptcy petition do so to receive the protection of the automatic stay. This page will discuss what an emergency bankruptcy is and the reasons for filing an emergency bankruptcy petition.

Emergency Bankruptcy Defined

An emergency bankruptcy is the filing of a “bare bones” bankruptcy petition (ie. a bankruptcy petition without the attached schedules and statements which can be filed up to 14 days after the filing of the bankruptcy petition). The bankruptcy petition itself is a short document that can be electronically filed with the bankruptcy court to initiate the bankruptcy process and invoke the protections afforded by U.S. bankruptcy law.

You can file bankruptcy today to stop foreclosure, wage garnishment, repossession and lawsuits. Call Sacramento Law Group LLP today at (916) 596-1018 to receive a free consultation.

The Reasons For An Emergency Bankruptcy

There are several reasons for pursuing an emergency bankruptcy. Most commonly, an emergency bankruptcy is filed to initiate the automatic stay. Other reasons for filing an emergency bankruptcy include recovering transferred property; protecting after-acquired property from bankruptcy; and protecting inheritance, divorce, or life insurance proceeds from bankruptcy.

The Automatic Stay Stops Wage Garnishment, Foreclosure, or Repossession

The most common reason for filing an emergency bankruptcy petition is to receive the benefits of the automatic stay in bankruptcy and stop wage garnishment, foreclosure, or repossession. To explain, the automatic stay in bankruptcy stops collection actions to protect property of the bankruptcy estate. In practical terms, the automatic stay stops repossession, foreclosure, and wage garnishment. Consequently, someone suffering from a wage garnishment may initiate an emergency bankruptcy filing to stop the daily garnishment of their wages. Likewise, someone may file an emergency bankruptcy to stop an impending foreclosure sale and thereby protect their home.

Regain Transferred Property

In general, payments made on account of a debt within 90 days before bankruptcy are recoverable by the bankruptcy Trustee. (See Section 547 of the bankruptcy code). Of course, there are exceptions. For example payments of less than $600, or payments in exchange for new value, are not recoverable by the Trustee. Nevertheless, some transactions made within 90 days before bankruptcy are considered “preferential” and therefore recoverable (taken back) by the Trustee. Now, sometimes bankruptcy petitioners want their property to be recovered by the Trustee, and sometimes these bankruptcy petitioners speed-up their filing to make sure that the transfer took place 90 days before filing. Consequently, the recovery of preferential transfers can be a reason for filing an emergency bankruptcy petition.

Protect Your Property

Once a chapter 7 bankruptcy petition is filed with the court, the debtor’s property acquired thereafter (except for wages) is not subject to their prepetition debts. Therefore, someone may speed-up filing for bankruptcy to protect property they expect to acquire in the near future. However, some property acquired after filing is still liable if received within 180 days of filing. Specifically, inheritances, life insurance proceeds, and proceeds from a marital separation agreement received within 180 days of filing are liable. Consequently, some people who expect to receive inheritances, life insurance proceeds, or compensation under a marital separation agreement may file for bankruptcy to start the 180 day period in the hopes of receiving the monies after the 180 days have passed.

Sacramento Law Group LLP is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Our services, benefits and assistance may involve and are with respect to bankruptcy relief under Title 11 of the United States Code. Adam Garcia is responsible for this communication. ADVERTISEMENT. By Adam Garcia on Google+
*$900 Chapter 7 Bankruptcy Fee Disclaimer: While most cases qualify for the above fee, some cases are complex. Consequently, the above fee is only a sample fee (not a specific or guaranteed fee) and is subject to change at any time due to the necessity of charging more for complex cases. The sample chapter 7 fee represents the typical fee for a simple no-asset chapter 7 case. The $900 fee is only available to residents of the following counties: Sacramento, Placer, Yolo, Solano and San Joaquin. Residents of other counties may be charged more.