Anaheim Emergency Bankruptcy
ANAHEIM EMERGENCY BANKRUPTCY
Bankruptcy is a scary word for many Americans, but the reality is that bankruptcy is a stopgap solution when a debtor cannot afford to pay their debts. Creditors of all kinds have the right to pursue repayment on outstanding debts in accordance with the contract terms established with a debtor, but sometimes a debtor facing severe economic hardship may face even worse economic fallout when a creditor comes calling at the worst possible time.
At the Law Office of Christopher P. Walker, we understand how difficult it can be to manage outstanding debts. We want to help our clients in Anaheim and throughout Orange County, California reach financial security under the law. An emergency bankruptcy could be the solution to your current debt problems, but it is essential to understand what emergency bankruptcy is, how it works, and how it can influence your debt and creditworthiness in the future.
What Is an Emergency Bankruptcy?
“Bankruptcy” refers to the legal process of seeking relief from debts when a debtor is unable to pay outstanding debts. There are many types of bankruptcy filings that exist for individuals and organizations in the United States, including emergency bankruptcy.
An emergency bankruptcy filing, also referred to as a skeleton bankruptcy filing, is one of the more streamlined options available to a debtor who cannot repay an outstanding debt. Filing for emergency bankruptcy places an immediate and automatic stay on collection efforts from most creditors. Once this stay is in effect, the debtor effectively has some room to breathe and time to file appropriate debt relief documentation without needing to worry about a creditor coming to collect on the debt in question.
Emergency bankruptcy filing offers the chance of preventing home foreclosure or necessary vehicle repossession when such actions are imminent. A formal bankruptcy filing takes much longer and requires significantly more paperwork than an emergency filing, so most debtors won’t be able to complete a formal filing in time to stop a creditor from foreclosing on a home or repossessing a necessary vehicle. The emergency filing offers the debtor 14 days in which to complete and submit the rest of the necessary paperwork.
Navigating Emergency Bankruptcy Filing
Most individuals who need to file for emergency bankruptcy will do so under Chapter 7 as an individual. Privately owned companies that require emergency bankruptcy relief will typically file under Chapter 11, but emergency bankruptcy filings for businesses are very rare.
The debtor filing for emergency bankruptcy will need to pay a filing fee and include the contact information of all creditors involved in the filing with their other documentation. Formal bankruptcy filing requires completion of a credit counseling course, so a debtor seeking emergency bankruptcy relief will need to either submit proof of completion of this course or complete a request for a waiver for this course. Additionally, the debtor will need to submit a Form B121, which includes Social Security information, and additional paperwork depending on the court in which the debtor files for emergency bankruptcy.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is the most commonly used form of bankruptcy relief in the United States. This process involves asset liquidation for relief from creditors. When a debtor seeks Chapter 7 bankruptcy, all of the debtor’s nonexempt property enters into a trust, and the trustee converts the contents of the trust into cash to pay off the debtor’s creditors. Most of the Chapter 7 bankruptcy filings that happen in the US involve no-asset cases, or cases in which the debtor has no nonexempt property to liquidate. In such cases, the bankruptcy court will require a filing fee and review the debtor’s eligibility for debt discharge. This hurts the debtor’s credit significantly, and it will be very difficult for the debtor to obtain any type of financing in the near future, but it can offer effective relief from outstanding debts and aggressive creditors.
What Is Chapter 11 Bankruptcy?
The most common type of bankruptcy filing used by companies in the United States is Chapter 11 bankruptcy. This part of the Bankruptcy Code allows a company to reorganize its assets and debts. Chapter 11 essentially provides a company in debt with a fresh start, but only if the company meets the criteria set forth by the Chapter 11 plan for reorganization.
Why Hire an Attorney for Emergency Bankruptcy?
Filing for any type of bankruptcy, including emergency bankruptcy, is a complex process with many moving parts. Individuals who seek emergency bankruptcy generally need financial relief as soon as possible to avoid creditors collecting on outstanding debts in disastrous ways, such as taking a house or a vehicle needed for work. Hiring an attorney streamlines the process of obtaining emergency bankruptcy status.
An experienced Anaheim, California bankruptcy attorney can be a fantastic ally when one faces severe debts but does not have the flexibility to provide the situation their full attention. People work, have families, and many other responsibilities. An aggressive creditor or a looming foreclosure or repossession can be difficult to manage with a high-stress lifestyle. Hiring an attorney allows you to place these concerns into capable hands. Your attorney will know how to handle your emergency bankruptcy filing as quickly and efficiently as possible so you can focus on reorganizing your budget and obtaining the bankruptcy filing you need to regain control over your finances.
The Law Office of Christopher P. Walker offers experienced and compassionate legal representation for bankruptcy filings in Anaheim, California and throughout Orange County. If you need to secure emergency bankruptcy status as soon as possible to avoid foreclosure on your home or repossession of a vehicle you need for work, we can help. Contact our team today to schedule an evaluation with us. We will let you know what to expect from the emergency bankruptcy filing process.
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