Sometimes people wait until the last minute before a foreclosure sale. They are forced to file an emergency bankruptcy in Louisville Kentucky to stop a foreclosure sale. Yes we do file emergency petitions but we take the time to do it.
Clients often had repeated promises they didn’t need to worry because a mortgage modification would be approved. They may have been told they didn’t need an attorney. But they did. The mortgage company just didn’t want them to use one.
Another reason to file an emergency bankruptcy is to stop a business from being shut down. The IRS and state tax departments have padlocked and closed businesses before due to overdue taxes. In cases like that you need to file now.
Never file a skeleton bankruptcy petition
Some attorneys will file a short skeleton petition in an emergency. With a skeleton petition, the remaining schedules within 14 days later. 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 certificate. Filing a skeleton petition puts the judge and the court clerks through additional work.
Never pay the filing fee in installments
Some attorneys market to the poor about how you can pay filing fees in installment. Paying the filing fees in installments and filing a skeleton petition draws attention to your case and causes closer inspection. It also invites the case to be dismissed if the installments are not paid on time. The attorney gets to charge for filing 2 cases. Studies have shown filing incomplete petitions in a rush often means you also lose property. In the long run, it is more costly to use an attorney that does it quick and cheap.
Filing a rushed petition may mean losing benefits
The problem is 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 risk 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 refile effectively.
Problems with a filed emergency bankruptcy petition
If you don’t have time to prepare the petition you 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, accurate and well-prepared petition you risk a lot. People have done this and lost their homes to a Trustee. The discharge could be denied. If you take the time to check out facts before you file you may be able to discharge taxes and strip liens. Deadlines are likely to be missed if you don’t. Documents are not supplied on time. As a result, most attorneys will ask for additional fees for doing additional work and risking penalties.
The court 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 this is caused by rushing and not filing a complete and well-prepared petition.
Sometimes you have no choice to file an Emergency Bankruptcy
Sometimes emergency petitions are necessary when an event happens which you could never expect. Unexpected events include car repossessions, wage garnishments, Bank account seizures, and IRS garnishments. You normally have months of advanced warning before the foreclosure sale to prepare. Last minute Emergency petitions to stop a foreclosure do happen. But it only takes 2 hours to prepare most petitions which are 60-80 pages long. Most petitions can be accurately prepared if you can provide paystubs, income tax returns and the other documents. If you file a rushed petition it places cars and homes at risk because car liens and mortgages cannot be verified.