Is Bankruptcy an Emergency?

Anyone filing for bankruptcy is likely to consider his or her situation an emergency. Deciding to file is a big decision that takes time, but if you’re like most people, once you commit to filing for bankruptcy you’re ready to move forward as quickly as possible. Unfortunately, the bankruptcy court is unlikely to move with the same vigor you feel once you’ve filed.

In most cases, filing for bankruptcy is not considered an emergency by the court and you will need to wait as your case winds its way through the system to get settled. However, there are a few instances in which the court considers bankruptcy an emergency and if you fit into any of these categories, your case will take less time to complete.

One of the first things that happens when you file for bankruptcy is an automatic stay. The automatic stay puts an end to all collection efforts and relieves a great deal of the stress that accompanies financial struggles. Everyone who files for bankruptcy is entitled to the benefits of the automatic stay, but how quickly it is enacted depends on a few things:

Are You Facing Foreclosure?

If there is a pending threat of a foreclosure sale on your home – scheduled to occur within a month or less – the court will consider your case an emergency. You need to act as quickly as possible if a date has been set for foreclosure, and you can expect the court system to do the same. Your attorney will help you deal with the urgency of the situation and ensure everything goes as smoothly as possible.

Have Your Wages Been Garnished?

Wage garnishment is common when you are facing serious financial strain, and when a wage garnishment affects a low income earner, the court might consider it a bankruptcy emergency. You’ll need to demonstrate that wage garnishment will or has been making it difficult for you to make ends meet in order to have your bankruptcy case moved along as quickly as possible.

If you’d like to know more about wage garnishment check out this information.

Has Your Vehicle Been Repossessed?

Like foreclosure, financial issues can put your ownership of a vehicle at risk. This is something that can tip off a series of unfortunate financial circumstances because if you lose your ability to get to work, you lose your ability to earn money.

It might be possible to get your repossessed vehicle back early in a Chapter 13 filing, but you and your attorney need to act fast. On the other hand, if you are just facing the threat of vehicle repossession but it hasn’t yet occurred, the court is unlikely to move with the same urgency.

The important thing to keep in mind is that even if the court doesn’t move quickly on your bankruptcy, you still need to view your situation as an urgent matter. There are a lot of things your attorney can do to protect you if you act sooner rather than later. Taking your situation seriously and doing what you can to remedy things as quickly as possible, even if the court doesn’t deem your circumstances an emergency, can give you peace of mind and ensure that bankruptcy provides the greatest possible long-term benefit.

For more information or to discuss a potential bankruptcy emergency, contact R. Flay Cabiness, II, P.C. at (912) 554-3774 (Brunswick, GA); (912) 375-5620 (Hazlehurst, GA) or; (912)-554-3756 (Jesup, GA).