Can an emergency bankruptcy filing stop mortgage foreclosure on my home?
Can filing an emergency bankruptcy petition stop the mortgage foreclosure process? The answer to the question is that an emergency petition could be your only option to stop the mortgage foreclosure process. Although we do not encourage emergency filings, one thing that is clear though, is the fact that at times, they are necessary. We can chat with you about that. Mooney Law is dedicated to helping you manage your bankruptcy filing. We will thoroughly explain the process to you and help determine whether an emergency bankruptcy petition filing is in your best interest.
So what exactly is an emergency bankruptcy petition?
An emergency bankruptcy petition is when the debtor does not have enough time to complete all the required bankruptcy forms, prior to the imminent mortgage foreclosure. Essentially, the debtor is filing an incomplete, shortened petition to get the case filed and the automatic stay in place. The emergency filing would delay the foreclosure process because of the automatic stay.
It is important to note that a debtor who files an emergency petition will be given only 14 days after the emergency filing date to complete the rest of the forms and schedules for the bankruptcy. It is critical that once the emergency petition is filed, that the debtor immediately gather all financial and other information needed to complete the filing in its entirety. Mooney Law will work you to ensure that you are aware of what information is needed to complete the emergency filing into a full petition filing.
So what is an automatic stay in bankruptcy?
An automatic stay is put in place whenever a debtor files a petition with the Court, whether an emergency petition or not. An automatic stay prevents creditors from contacting the debtor to collect money during the bankruptcy proceedings and process, this includes stopping a foreclosure proceeding.
The automatic stays also stops most civil lawsuits filed against you and most collection actions by a creditor, collection agency, or even a government entity. It is a powerful tool when a debtor need to file bankruptcy. If your wages are being garnished, if your bank account is ready to be seized, if you are subject to a lawsuit in civil court over debt, or if you have foreclosure sheriff’s sale date, then the automatic stay is exactly what you need to gain immediate relief from those collection efforts.
Do I choose Chapter 7 or Chapter 13 to file bankruptcy?
Mooney Law will help you determine which chapter of bankruptcy you are eligible to file and which chapter is in your best interest. The most common personal bankruptcy chapters are Chapter 7 and Chapter 13. There are several factors that go into determining eligibility and what’s in the best interest of the debtor, including income, expenses, equity in property, and more. For more information on Chapter 7 and Chapter 13, link here to a prior blog article.
Bankruptcy is a complicated process dictated by the US Bankruptcy Code. We can help guide you through this complex maze, which is why getting set up for a FREE consultation is your best choice to get started in the process. For an emergency filing, Mooney Law stands ready to assist and meet with you immediately. Remember, with the mortgage foreclosure process, waiting too long could be detrimental to your ability to keep your home. Mooney Law is your Pennsylvania and Maryland bankruptcy law firm. Call today to schedule your free consultation at 833-MOONEYLAW.