Are you trying to find an emergency attorney or a debt relief agency? Sometimes you have a foreclosure, but you were trying to stop yourself from filing for bankruptcy. You may have even been told by the bank or their lawyer that they would postpone a sale, and then they didn’t. Because you waited until the last minute, they are now selling your home tomorrow, destroying your financial future. You have just hours to file the bankruptcy petition and stop the sale.
If a foreclosure sale is happening tomorrow, you usually are long past the time to file in the Kentucky bankruptcy court. They have gotten a judgment, and the time for an appeal to reverse that judgment has passed. Typically the only option to stop the commissioner sale in such a condition is an emergency bankruptcy filing.
Emergency bankruptcy is a bankruptcy type that is considered fast-paced and offers protection of automatic stay to safeguard your finances immediately. People who want an immediate escape from the creditor’s calls often go for emergency bankruptcy.
According to the bankruptcy code, after a foreclosure sale happens, you no longer own the property. After the sale is confirmed, the title passes to the new owner, and you lose all rights to possession. The only way to get the home back after a commissioner’s sale is the right of redemption, where you have to pay the new owner what he paid for the property plus a small profit. If the new owner paid 67% of the value to be raised or more, there is no right to redemption to get your property back.
I have handled various emergency bankruptcy cases and comprehended how the situation could be tricky. Some legal talk can give you an advantage when you want an escape from your creditors.
However, sharing and knowing the approximate value of your car payments, credit card debt, medical bills, or any other circumstances can lead to complications in a bankruptcy case.
With the free consultation at our law firm, we assure you are connected with an experienced bankruptcy lawyer. Call my office now to schedule your appointment.
Emergency Bankruptcy Filing – What is it?
Emergency bankruptcy filing is a process of bankruptcy filing process with the completion of the minimum required documents to start the bankruptcy process. Once the bankruptcy filing process starts, the remaining paperwork can be completed within 14 days to prevent the dismissal of the bankruptcy case.
To prevent the further repercussions of debt collections, people turn to filing quick bankruptcy to ensure they can fix their finances. A bankruptcy filing can prevent critical situations like foreclosure, repossessions, or wage garnishment.
As an experienced bankruptcy lawyer in Louisville, Kentucky, I can review the bankruptcy form with confidential or sensitive information during the free consultation you would schedule.
With a healthy attorney-client relationship built in my law firm, you can address your issues, and we’ll help you with the best legal services.
Why is Emergency Bankruptcy Filing Crucial?
While filing a petition for emergency bankruptcy, a person can stop the impending collection or instantly prevent the collection efforts against them. In legal terms, the situation is known as Automatic Stay, which allows the individual to prepare themselves before taking any action for debt collection. One of the most familiar reasons for filing emergency bankruptcy is invoking an automatic stay.
Therefore, filing an emergency or skeleton bankruptcy may be an option for a person dealing with wage garnishment, foreclosure, repossession, or any other severe issues.
Unfortunately, filing emergency bankruptcy or skeleton bankruptcy is a temporary solution for the more significant problem associated with your finances. After filing a skeleton petition, following up with the bankruptcy filing process is imperative to prevent bankruptcy case dismissal.
Though you can complete the filing process by filing the online forms and paying through the fee waiver application, filing through a professional bankruptcy lawyer is still advisable. Finalizing the paperwork properly is essential to ensure that your bankruptcy case is not dismissed.
Kentucky Bankruptcy Skeleton Petitions
For emergency bankruptcy filing, you must do these three things.
- First, you need to take the required class to get the certificate.
- Second, you must list your creditors with their correct addresses. Even if you guess the amounts, a credit report is helpful.
- Finally, you must file the social security statement, verifying your social security number.
Time to Prepare a Bankruptcy
We can prepare for a complete bankruptcy in a two-hour consultation. It takes less time to prepare a skeleton that only has your name and address, the creditor matrix, your credit report, and your statement of a social security number. Filing a skeleton within minutes is possible because it is just a minimum amount of information.
Obtaining the certificate takes about two and a half hours. Without the certificate, the case is immediately dismissed.
Filing the Remaining Kentucky Bankruptcy Schedules
The skeleton only has the bare bones needed to file bankruptcy on the first day in a law firm.
Immediately after the skeleton is filed, the remaining schedules are due. These remaining schedules list your assets and credit card debt. The cosigner’s lease income and an expenses analysis are also listed in the schedules.
There is a means test calculation, a statement of income, and a statement of financial affairs that must be completed within a day or two. Failure to take credit counseling and upload proof of credit counseling when the bankruptcy is filed will result in the dismissal of the case.
You can’t take the counseling after Chapter 7 or 13 is filed. If you do, the case is automatically dismissed, and you may not be able to file again and get the court order to stop the sale. Failing to file the schedules will also mean the dismissal of the case.
A bankruptcy lawyer cannot collect post-petition for this work, so you will still need to pay the total lawyer fees and filing fee upfront. Due to the risks involved in filing a skeleton petition, I suggest you use the best attorney you can find if you file for bankruptcy.
You are far more likely to lose assets by not filling out the schedules completely.
Doing this at the last minute increases the chances of error. This article covers the steps in bankruptcy filing; to save you from the mistakes you can make.
Skeleton Documents for Bankruptcy
Bankruptcy lawyers preparing a skeleton petition will still need proof of your identity, including your driver’s license and social security card. A W-2 or letter from social security number will work in some circumstances. Sometimes other third-party documents to verify your social security number will do the job.
Finally, the skeleton should have a list of the creditors involved. It is possible to file the skeleton without listing the creditors. The court requires creditors to be listed in a creditor matrix and uploaded with the filed bankruptcy, but this can be corrected later the next day.
Kentucky Emergency Foreclosure Lawyer
We prefer to prepare a petition several days before filing for bankruptcy to stop a sale. When a case is filed in an emergency, you may not have time to spend money in a bank account and lose those funds. You don’t give the lawyer time to check and ensure you are not on your mom’s deed.
Exemptions allow you to keep assets, and we often convert cash by spending it on food or other items with other exemptions like the household exemption. Spending time preparing all petitions allows us to check for property, exemptions, transfers, and other issues.
Often filing an emergency bankruptcy with the help of a bankruptcy lawyer to stop a seizure or foreclosure is done one or two days before the sale. It is done as a last resort but should be planned far ahead of filing. It may still be filed at the last minute, but it should be designed and prepared long before it is filed to be effective.
Filing the petition at the last minute can be a strategy to stop the bank from objecting in time to hold the sale still.
A bankruptcy filing by the bank before the sale will prevent the sale even if the bank has a good reason to object.
Filing Properly for Bankruptcy Relief under the Bankruptcy Code
Emergency petitions are like jumping from a plane without checking your parachute. Hopefully, it goes ok. Sometimes it doesn’t. If you had IRS problems, emergency filing personal bankruptcy might cause you to lose the chance to discharge the IRS debt or strip a lien.
It is far better to get your attorney involved early at the start of the case, so this can all be planned and calculated correctly. Under emergency circumstances like the IRS closing your business or a foreclosure sale, you may not have time to complete the petition or gather all the documents.
Preparing an emergency petition can be done in minutes. But it should be designed, taking hours to plan. Here is the Commissioner’s website link and the page on their facts. You can check sales there.
FAQ’S
1. What Debts Are Usually Involved in an Emergency Bankruptcy Petition?
The debts that are usually involved in an emergency bankruptcy petition include the following:
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Priority Debts Often Cause The Filing of an Emergency Petition
Priority debts often do not need to go to court to garnish wages. The IRS can do a 100% garnishment of a bank account or wages. The notice you get from the IRS can be little or no notice. Income taxes less than three years old, trust taxes, and child support are priority debts not discharged in a Chapter 7 bankruptcy.
Child Support can also garnish bank accounts and wages with little or no notice. Priority credit card debt can be repaid in Chapter 13, but it can only be managed. They are generally not discharged.
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Foreclosures Are The Most Common Reason for an Emergency Filing
Foreclosures are the most common reason for an emergency filing. But, these filings are often planned to be at the last minute. You should never wait to prepare and plan the petition until the last minute. But you may want to file at the last minute and take all the time you can use for other methods to avoid it.
At our office, we often prepare mortgage modifications for clients. We may be working on a property sale until the last minute. If we need to file to avoid the commissioner’s sale, we will file a petition, and often, this is a Chapter 13 petition far safer to file than a Chapter 7, which can lose the property.
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State Court Receivership
You rarely see a receivership in state court. A receivership is when a creditor asks that a receiver be appointed to manage and wind down a business. The receiver gathers and sells the assets to pay the creditors in state court.
It is very similar to a Chapter 7 bankruptcy. Many businesses are better off liquidating in a Chapter 7 bankruptcy. That is why receiverships are rare. Receiverships force the business or person to file as a Chapter 7, 11, or 13 bankruptcy.
2. Will I Keep My Car by Filing an Emergency Bankruptcy?
Yes, you can keep your car by filing an emergency bankruptcy. People often file an emergency to get their car back. You can file a Chapter 13, which has provisions for keeping the car. After the car is repossessed but before the car is sold, you have a window of opportunity to force the bank or car lot to return the car.
You must have insurance on the vehicle, and the chapter 13 plan must have some plan for repaying the car. When the car loan is over 910 days old, you can file a plan that only pays the auto’s value.
Emergency Bankruptcy Attorney Kentucky is Just a Call Away!
If you need to stop a seizure and get the property back now with an emergency bankruptcy filing, call Nick, the Kentucky Bankruptcy Attorney. We are a debt relief agency.
We often have late and weekend appointments if you call our main number, 502-625-0905. If your home is selling tomorrow, call now, don’t just send an email to a debt relief agency and bankruptcy relief under the bankruptcy code.
Resources for Bankruptcy
Louisville Kentucky Bankruptcy Forms
How to Keep Your Property When Filing Bankruptcy in Kentucky • Video
Common Chapter 13 Problems and Issues • Video
Fraudulent Concealment and Transfers in Bankruptcy • Video
Fraud, Stay, and Discharge Adversary Complaints • Video
Maxing Out Credit Cards and Later Filing Bankruptcy
If you are considering bankruptcy, don’t delay because timing is crucial. I am here to help you. So, contact my office right away to start the conversation. Nick C. Thompson, Bankruptcy
