February 26, 2020

Beware of “Emergency” or “2 Page” Bankruptcy Filings

avoid emergency bankruptcy petitionsA typical Chapter 7 or Chapter 13 petition requires you to submit well over 50 pages of documentation, including:

  • your schedules – which includes a detailed budget, a list of all creditors including addresses and account numbers, a detailed list of assets with estimated valuations, detailed information about sales, transfers, losses and recent payments to creditors, information about your and your spouse’s income over the past 3 years
  • your plan (in a Chapter 13)
  • a credit counseling certificate
  • pay advices documenting income for the past 6 weeks

In my experience, even the most organized bankruptcy filers will need around a week to 10 days to put all this information together.  For those less organized, it can take longer.

What happens, then, if you need bankruptcy protection immediately – perhaps to stop a pending repossession, wage garnishment or foreclosure?  In such an instance, the Bankruptcy Code does allow you to file an “emergency” petition consisting of only the first two pages of your petition + the credit counseling certificate.

You then have 15 days to complete the remainder of the paperwork and get it filed. [Read more…]

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