bankruptcy is most often used as a tool to eliminate debt, either quickly or gradually,
it can also be utilized for its secondary advantages. For example, someone
who is facing the loss of their home might take steps to initiate the
bankruptcy process in an effort to delay
foreclosure, or stop it all together. Since the court will grant an automatic stay
as soon as the debtor's petition has been filed, creditors would be
effectively prohibited from continuing their collection efforts—which
includes taking measures to foreclose upon a debtor's property, garnish
their wages or repossess their vehicle. That being said, it can be advantageous
for an individual to retain the protections of an automatic stay by filing
for bankruptcy. Since this can be time-sensitive issue, however, it may
be necessary to expedite the process.
Under these circumstances, an "emergency bankruptcy" could be
a viable option. This would allow an individual to get the ball rolling
without having to go through all of the steps that are required in a traditional
bankruptcy. Rather, they would only need to fill out a minimal amount
of paperwork in order to garner the benefits of an automatic stay. This
includes the voluntary petition, creditor matrix with verification, Exhibit
D and certificate of credit counseling, along with a filing fee of $306.
It is important to understand that the rest of the paperwork must still
be filed within the following 14 days, however, as the bankruptcy court
would dismiss the case if the filer does not meet this deadline. If they
do not think that they will be able to submit the completed paperwork
in time, they can request an extension from the court.
Additionally, all filers must keep in mind that they cannot initiate an
emergency bankruptcy until they have completed a court-approved
credit counseling course—as is mandatory in a traditional bankruptcy. Fortunately,
this course is only 60 to 90 minutes long, and can be completed in person,
over the phone or online. Even so, it is highly recommended that all debtors
take the time to adequately prepare for the bankruptcy process, as to
avoid any unnecessary hiccups. If you have considered filing an emergency
bankruptcy, you should not hesitate to seek guidance from a
Michigan bankruptcy attorney at Hensel Law Office, PLLC. Our firm understands the ins and outs of bankruptcy
law, so you can trust that we will be able to assist you in completing
this process efficiently and painlessly.
To learn more,
call our office today at (888) 258-0651 for a free initial consultation; we are available on
weekends and in the evening if you would like to schedule an appointment.