You and your family have been struggling with finances for a while. You are unable to make your credit card payments, creditors are constantly calling you and now your house is being threatened with foreclosure. The prospect of bankruptcy has concerned you for some time, but you could never bring yourself to file for it.

Now it looks like you may have turned your back on the one thing that could prevent foreclosure. But did you really? You may still be able to file for emergency bankruptcy.

What is emergency bankruptcy?

Emergency bankruptcy offers a streamlined filing process. You fill out a portion of the bankruptcy paperwork, making sure that it gets filed as quickly as possible. The idea is to provide the court with your key information, such as your debts and creditors, so that they can immediately place an automatic stay on your assets.

Once you file the basic paperwork, creditors are not allowed to contact you and they cannot seize your assets. Your house will be safe from foreclosure, and you can breathe a little easier. You have to complete the rest of the paperwork within 14 days of your initial filing.

If you fail to file the rest of your paperwork within 14 days, your bankruptcy claim can be dismissed by the court.

How long does it take to file for emergency bankruptcy?

Exact timing varies depending upon an individual’s circumstances and their ability to quickly retrieve key financial information. However, an emergency bankruptcy is typically completed within a few days.

In comparison, filing for bankruptcy under the traditional route typically takes several months to complete. You can see the upside of an emergency bankruptcy – if you underwent a typical bankruptcy filing, creditors could hound you for several extra months, and you could run the risk of having your home or car repossessed.

What type of bankruptcy can you apply for?

You can apply for either chapter 7 or chapter 13 bankruptcy when you file for emergency bankruptcy. If you want to pursue chapter 7 bankruptcy, you will first need to make sure that you qualify.

If you are interested in filing for emergency bankruptcy, contact an attorney who can walk you through the process, and help you determine which bankruptcy plan is right for you. Remember that the bankruptcy system is here to help get you back on your feet and set you up for future success.