Sometimes it is necessary to act quickly when filing for bankruptcy. This could be true if you need the protection of an automatic stay right away or if, for some other reason, you cannot wait to complete the majority of the bankruptcy forms. If this sounds like you, then you can file a bare-bones emergency bankruptcy form and file the rest later.
Is It a Good Idea to File an Emergency Bankruptcy?
In most circumstances, no; not if you can help it. Bankruptcy is a complicated process. It involves a lot of paperwork and for a bankruptcy to go through, you have to honestly disclose all assets, income, expenses and more. The process has strict timelines and steps that you must take in order for your bankruptcy to take effect.
Because of how strict the process is, acting hastily is not always the best course of action. You need some time to make sure you’re crossing your T’s and dotting your I’s. Any little mistake could lead to the dismissal or your case, or worse, criminal penalties. But, sometimes it can’t be avoided: for example, if your home is about to be foreclosed on.
It’s always best to get out ahead of the situation before you run out of time. If you must file an emergency petition, your first call should be to a bankruptcy attorney. Attorneys know their way around the process and can help you plot your best course of action moving forward.