04 Mar Today is Monday, And My House is Going to Be Sold on Wednesday! Can I Still File For Bankruptcy?
Bankruptcy can be used to stop a foreclosure sale. This occurs because the automatic stay stops all attempts to collect on a debt, and a foreclosure sale is the way a creditor with a mortgage on your home will most often use to collect on the debt that you owe it if you are behind on the mortgage.
Unfortunately, many times debtors are lead to believe that a creditor is trying to work with them to modify a loan, and are lulled into a false sense of security, while the creditor, through its foreclosure attorney, is continuing to go forward with the sale of the home.
It is not the ideal to wait to the last minute to file for a bankruptcy, butit is possible to file for an Emergency Bankruptcy to stop an action to foreclose on a home.
An emergency bankruptcy can also be used tostop a wage garnishment or to stop some other action that may cause you financial harm.
The biggest issue facing a potential debtor when filing an emergency bankruptcy is whether they will have time to complete the credit counseling required by the 2005 changes to the Bankruptcy Code known at the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).
When a new case is filed a certificate of completion must be attached to the filing. Failure to have obtained credit counseling before filing is an automatic basis for dismissal of the bankruptcy.
Fortunately, credit counseling can be done not just in person, but by telephone, and most often by the Internet. By using the Internet to complete counseling, it is usually possible to get a certificate of completion within hours.
In addition to the certificate of completion, the following documents must be attached to the emergency filing:
- The bankruptcy petition;
- Exhibit D, which is the debtor’s certification that credit counseling was completed;
- The statement of the debtor(s) Social Security number; and,
- Themailing matrix of your creditors names and addresses.
The rest of your documents need to be filed within fourteen days or your case can be dismissed.
Remember, the biggest hurdle to an emergency bankruptcy filing is the requirement of credit counseling. An experienced consumer bankruptcy attorney can assist you in getting the credit counseling you need in a quick, timely manner.
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