What’s the Difference Between Emergency and Regular Bankruptcy Filings?

If your financial situation is nearing an emergency and you need to file for bankruptcy quickly, contact our lawyers before filing a “skeleton case” with minimal information. If you don’t give all the documents and paperwork associated with a regular bankruptcy, you might jeopardize your case.

Skeleton or emergency bankruptcy filings are common when debtors are facing foreclosure or another harmful debt collection act from creditors. Filing for bankruptcy gives you an automatic stay, and an emergency filing may only contain core bankruptcy documents. That automatic stay may not last forever if creditors successfully motion to lift it. The risk of successful creditor motions to lift stays or dismiss cases increases when debtors rush filing, so let us prepare a strong and complete bankruptcy case for you.

Call our bankruptcy lawyers at (215) 701-6519 or (609) 755-3115 for help with your case from Young, Marr, Mallis & Associates.

How Do Emergency and Regular Bankruptcy Filings Differ?

Emergency bankruptcy filings are bare-bones cases. Debtors submit the core bankruptcy documents in the hopes of getting an automatic stay. This would immediately pause all collection efforts from creditors, which is one of the major benefits of bankruptcy.

Reason for Filing

While all bankruptcies are because of debt, considering filing an emergency bankruptcy means you need urgent relief. The automatic stay stops ongoing foreclosure proceedings, wage garnishment, and vehicle repossession, all of which add to debtors’ distress. Bankruptcy can even stop an impending sheriff’s sale of a foreclosed home because of the automatic stay.

Although our bankruptcy lawyers understand that debtors want immediate relief from an automatic stay, rushing to file is inadvisable. Although you might temporarily stop foreclosure, creditors may successfully motion to lift the automatic stay or dismiss the case if you are not prepared.

Creditors should warn you about car repossession, foreclosure, and even wage garnishment before it begins. When you get those warnings, you can call our lawyers. We can begin preparing your bankruptcy case immediately and file it as soon as possible without rushing the process. Then, you can benefit from an automatic stay and other features of bankruptcy and avoid risking case dismissal.

Initial Documents

Emergency bankruptcy filings typically only contain the core bankruptcy documents. Debtors must submit a bankruptcy petition, a creditor matrix, a creditor counseling certification or waiver, and a Statement of Social Security Number.

There may be additional paperwork required upon filing a skeleton or emergency bankruptcy case, and judges may dismiss petitions if all the necessary information is not provided.

When you file a regular bankruptcy petition, you include most core documents from the get-go. This includes all the aforementioned documents and others, many of which are specific to the bankruptcy chapter you are filing, whether Chapter 7 or 13.

Debtors filing skeleton bankruptcy cases still need to submit all the required paperwork and documents for bankruptcy at some point. If they do not, their cases may be dismissed, which is why accomplishing this from the outset is beneficial.

What Are the Similarities Between Emergency and Regular Bankruptcy Filings?

No matter how quickly you file for bankruptcy, your case will go through the court, go on your credit report, and may end in a debt discharge.

Go Through the Court

All bankruptcy cases are processed through the court, regardless of whether they are emergency or regular filings. That means a judge oversees your bankruptcy case. The judge might dismiss incomplete petitions or skeleton cases that are too sparse upon filing. The judge may also hear motions from creditors to lift automatic stays or dismiss cases; therefore, debtors must be prepared to defend against such attempts.

Go on Credit Report

Bankruptcy always goes on your credit report. Whether an emergency filing is successful or not, such as when the judge dismisses it or the debtor fails to make the repayment, it will still be reported on their credit report. The dismissed case will also remain on your credit report for the same duration as a successful, regular bankruptcy case, typically seven to ten years, depending on the chapter filed.

This is another reason why taking the time to file a bankruptcy case is important, as a dismissed case can also negatively impact your credit.

Get a Debt Discharge

At the end of any successful bankruptcy case, the debtor gets a debt discharge. Any unpaid dischargeable debts, such as medical and credit card debt, are erased. You may only receive a debt discharge if your emergency bankruptcy case is resolved and you repay all secured debts in full. If that doesn’t happen, you won’t get a debt discharge, whether in an emergency or regular bankruptcy filing.

What if I Need to File Emergency Bankruptcy?

Even if you need urgent relief from an automatic stay, do not rush to file a skeleton case without our lawyers. We can still file your case quickly, but not too quickly that it jeopardizes its success.

If you are facing foreclosure, wage garnishment, or other stressful debt collection activities, please call us. We can review your debt and overall financial situation to devise the best path forward.

That may be filing Chapter 7 or Chapter 13 bankruptcy, but you need to take the time to figure that out. Chapter 7 bankruptcy liquidates your assets, so you should not file that chapter unless you are prepared for that result.

Chapter 13 bankruptcy requires a repayment plan. Debtors must present repayment plans for the court’s approval within 14 days of filing a bankruptcy case. If you rush your case without knowing this, you might miss the deadline for submitting the repayment plan. If that happens, any creditor may motion to dismiss the bankruptcy case, and the judge might agree.

Call for Help with Your Bankruptcy Case Now

Call Young, Marr, Mallis & Associates at (215) 701-6519 or (609) 755-3115 to discuss your case for free with our Philadelphia bankruptcy lawyers.