Filing bankruptcy can sometimes involve a long planning process that involves carefully going through your finances, answering dozens of questions, and even taking a credit counseling class. Depending on your attorney’s workload, it can take several weeks to prepare your petition for filing.
Sometimes, you don’t have that kind of time. Like when a foreclosure sale is on the horizon and bearing down on you.
Fortunately, the Bankruptcy Code allows debtors to commence a bankruptcy case by filing only the three-page bankruptcy petition, as well as Exhibit D showing that the credit counseling class has been taken as well as a certificate of completion for the credit counseling class (although your attorney may ask for a deferral of taking the class). Your attorney must also file a statement of social security number and a list of your creditors.
You and your attorney then have fourteen (14) days to file the rest of the documents required in a bankruptcy filing.
While filing an emergency petition may sound like a good idea, it may not be the best idea. If you don’t get the rest of your bankruptcy documents filed by the deadline, your case might be dismissed, and you might be prohibited from filing for another 180 days, which will allow creditors to move forward with any of their collection efforts during that time. The better course to take is to take the time to help your attorney carefully prepare your bankruptcy petition. It’ll ensure your debts are discharged without a hitch.