File an Emergency Bankruptcy
File an Emergency Bankruptcy in Louisville Kentucky
Sometimes people wait until the last minute before a foreclosure and they are forced to file an emergency bankruptcy in Louisville Kentucky. This is often to stop a foreclosure sale after repeated promises they don’t need to worry because a mortgage modification would be approved.
Other times the reason to file an emergency bankruptcy is to stop a business from being shut down. The IRS or state tax agencies have padlocked and closed businesses before due to overdue taxes.
Never file a skeleton bankruptcy petition
Some attorneys will file a short skeleton petition in an emergency. With a skeleton petition, the remaining schedules are filed later within 14 days. If the remaining schedules are not filed on time the case may be dismissed or worse. The skeleton petition only needs to include the credit counseling statement,
Some things such as paying the filing fees in installments and filing skeleton petitions draws attention to your case. Filing incomplete petitions or paying fees in installments puts the court clerk through additional work and causes closer inspection.
The problem is that you are signing a petition under oath. You are required to completely and accurately report information which should be prepared over time and planned. By filing an incomplete or inaccurate petition you lose certain benefits and take the risks of many penalties. This includes criminal prosecution. You may not be able to file a second time if you make a mistake. If you file a second case within a year the stay expires within 30 days if you don’t get an extension. If you filed a sloppy petition you probably won’t be able to effectively refile.
Problems with a filed emergency bankruptcy petition
If you don’t have time to prepare the petition you probably don’t have time to make sure liens are properly filed. You don’t have time to check on what other liens may exist. By not preparing a complete and accurate well prepared petition you aren’t prepared at all. People have done this and lost their homes to a Trustee. The discharge could be denied. You may not be able to discharge debts such as taxes which would have been discharged had you taken the time to completely and properly check out the file before you file. Deadlines are likely to be missed. Documents are often not supplied on time. As a result most attorneys will ask for additional up front fees for risking such petitions.
They may refuse to dismiss the case if a Chapter 7 trustee finds assets or preferential transfers and take property you did not intend to lose. All of this is normally caused by rushing and not filing a complete and well prepared petitions.
Sometimes you have no choice to file an Emergency Bankruptcy
But sometimes emergency petitions are necessary when event happen which you could never expect. Car repossessions, wage garnishments, Bank account seizures, and IRS garnishments are often things which are not expected. Last minute Emergency petitions to stop a foreclosure do happen. But it only takes 2 hours to fully prepare most petitions which are 60-80 pages long. If you can provide paystubs and income tax returns most petitions can be accurately prepared. But it places cars and homes at risk if the titles and mortgages cannot be verified.