Sometimes there is no time to prepare a full bankruptcy case. A foreclosure sale is set for tomorrow morning. A garnishment has hit your paycheck. The repo truck has been seen on your street. In these situations, the law lets you file a short "emergency" petition first and finish the rest of the paperwork soon after.
Whittier cases are filed in the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division. We are available 24/7, so call (562) 612-7806 as soon as you know about a deadline.
What is an emergency ("skeleton") bankruptcy?
An emergency filing, sometimes called a skeleton petition, is a bankruptcy case started with only the most basic forms. Filing it puts the automatic stay in place right away. The automatic stay is a court order that stops most collection, including foreclosure sales, wage garnishments, bank levies and repossessions.
An emergency filing may make sense if:
- A foreclosure sale is days or hours away. The case must be filed before the sale takes place.
- Your wages are being garnished and each paycheck is being cut.
- A creditor has levied your bank account or is about to.
- Your car is about to be repossessed and you need it to get to work.
- A lawsuit or judgment is about to lead to a lien or other collection.
Timing matters. If the foreclosure sale happens before the case is filed, bankruptcy generally cannot undo it.
Credit counseling still comes first
Even in an emergency, federal law requires you to complete a credit counseling course from an approved agency before you file. The course must be taken within 180 days before filing. It is usually available online or by phone and can often be completed the same day.
There is a narrow exception for true emergencies when counseling could not be obtained in time, but courts apply it strictly. The safest course is to take the counseling right away. We can point you to an approved provider.
What must be filed within 14 days
An emergency petition buys you time, not a finished case. The rest of the paperwork is generally due within 14 days after filing. This usually includes:
- The schedules, which list everything you own, everything you owe, and your income and expenses.
- The statement of financial affairs, which answers questions about your recent finances, payments and transfers.
- The means test forms.
- Copies of recent pay stubs or other proof of income.
- In a Chapter 13 case, your proposed repayment plan.
You can ask the court for more time, but extensions are not automatic. Because there is so much to gather, we start working on your full paperwork the same day we file the emergency petition. Our bankruptcy processor, Annissa Henry, helps you collect what is needed quickly.
The risks of an incomplete filing
An emergency filing is a useful tool, but it is not risk-free.
- Dismissal. If the missing papers are not filed on time, the court can dismiss your case, sometimes without a hearing. The automatic stay ends, and the foreclosure or garnishment can start again.
- Weaker protection next time. If your case is dismissed and you file again within a year, the automatic stay may last only 30 days unless the court extends it. If you had two cases dismissed in a year, you may get no automatic stay at all without a court order.
- A bar on refiling. In some situations, a dismissal can stop you from filing again for a period of time.
- Mistakes made in a rush. Your papers are signed under penalty of perjury. Leaving out property or debts can cause serious problems.
Because of these risks, an emergency filing should be done carefully, even when time is short.
What to do right now
- Call us at (562) 612-7806, day or night.
- Have the notice of sale, garnishment papers or repossession notice ready.
- Take the credit counseling course if you have not already.
- Gather your ID, Social Security card and recent pay stubs.
To understand the full process, see the process of filing for bankruptcy. To compare chapters, read about Chapter 7 and Chapter 13, or what property is protected under California exemptions. You can also start at our Whittier bankruptcy lawyer page or our bankruptcy FAQs.
Call us before the deadline
Bankruptcy consultations are free, and Steven Ibarra can often meet the same day, in person or by video. When a sale or garnishment is coming, every hour counts. Contact us or call (562) 612-7806. We are available 24/7. Hablamos español.