Chapter 11 Bankruptcy Lawyers - Nick Davis Law

Emergency bankruptcy filings are usually required in urgent situations where an individual or business is facing imminent financial harm, such as foreclosure, eviction, wage garnishment, repossession, or lawsuits. If you receive a foreclosure notice or a creditor is about to garnish your wages, filing for emergency bankruptcy triggers an automatic stay, halting all creditor actions. This gives you time to gather the necessary paperwork and develop a comprehensive bankruptcy plan without facing immediate financial disaster.

Yes, an emergency bankruptcy filing can temporarily stop an eviction, but there are limitations. The automatic stay halts eviction proceedings if the landlord has not yet obtained a judgment for possession. However, if the landlord has already secured an eviction order, bankruptcy may not provide long-term relief. In some cases, the landlord can file a motion to lift the stay and proceed with the eviction. Your attorney can help assess your situation and determine whether bankruptcy can effectively prevent eviction or if another strategy might be more appropriate.

Filing for emergency bankruptcy will impact your credit score, just like a standard bankruptcy filing. The bankruptcy will remain on your credit report for up to 10 years for Chapter 7 or seven years for Chapter 11. However, if you’re facing financial distress, the immediate protection provided by the bankruptcy may outweigh the long-term credit impact. Additionally, rebuilding credit after bankruptcy is possible through responsible financial management and using secured credit options. Your attorney can provide advice on how to minimize the damage to your credit and rebuild it post-bankruptcy.

If creditors continue collection actions after you file an emergency bankruptcy petition and the automatic stay is in effect, they are in violation of bankruptcy law. You can file a motion with the court to enforce the stay, and in some cases, you may be entitled to compensation, including damages, legal fees, and even punitive damages. The automatic stay is designed to protect you from harassment or illegal actions by creditors, and working with an attorney ensures you can take swift action to stop any violations and hold creditors accountable.

Yes, you can convert an emergency Chapter 7 bankruptcy to Chapter 13 or Chapter 11 if your financial situation changes or if a reorganization plan is more appropriate. For example, if you initially file Chapter 7 to stop foreclosure but later decide to keep your home, converting to Chapter 13 allows you to repay arrears through a structured repayment plan. Similarly, if you’re a business owner, converting to Chapter 11 could give you the ability to restructure debts and continue operations. Converting from Chapter 7 to another chapter requires court approval and specific documentation, which your attorney will help prepare.

After filing an emergency bankruptcy, you have a limited time—usually 14 days—to submit the remaining required documents, such as detailed financial statements, schedules of assets and liabilities, and a list of creditors. If you fail to provide this information by the deadline, your case may be dismissed. However, you can request an extension if you need more time, but it must be granted by the court. Working with an experienced bankruptcy attorney can help ensure all paperwork is submitted accurately and on time to avoid dismissal.

Yes, you can file for emergency bankruptcy even if you have filed for bankruptcy in the past, but there are restrictions. If your previous bankruptcy was discharged or dismissed within the last 180 days, you may not be eligible for an automatic stay. Additionally, if you have filed for Chapter 7 or Chapter 13 bankruptcy within the last few years, you may face limitations on discharge eligibility. Your attorney can help assess your bankruptcy history and determine whether an emergency filing is appropriate and what protections are available.

Filing an emergency bankruptcy immediately halts most legal proceedings, including lawsuits, thanks to the automatic stay. This means that any litigation, whether it’s a creditor lawsuit for unpaid debts, a wage garnishment action, or a contract dispute, must stop until the bankruptcy court determines how to handle it. However, certain lawsuits, such as criminal proceedings or family law matters like child support, may continue despite the bankruptcy filing. It’s important to discuss your pending legal cases with your attorney to understand how they will be impacted by the emergency bankruptcy.

Yes, an emergency Chapter 11 bankruptcy can help save your business by halting creditor actions such as foreclosure, asset seizure, or lawsuits. The automatic stay gives you time to reorganize your business’s debts and negotiate with creditors. Chapter 11 allows your business to continue operating while you create a long-term repayment plan or restructure obligations. In cases where the business is facing immediate financial threats, filing an emergency petition can be the difference between staying open and shutting down permanently.

An emergency bankruptcy filing triggers the automatic stay, temporarily stopping repossession of a vehicle or foreclosure on a home. However, secured creditors may request court permission to lift the stay and proceed with repossession or foreclosure if you are significantly behind on payments or have no realistic plan to catch up. In Chapter 7, secured debts are often addressed by either surrendering the asset or reaffirming the debt. In Chapter 13 or Chapter 11, you can create a repayment plan to address arrears and retain the asset. Your attorney can guide you on the best way to handle secured debts after filing.

Yes, debts incurred before filing an emergency bankruptcy, even if recent, can be included in your bankruptcy case. However, debts that were incurred fraudulently or immediately before filing with no intent to repay may be challenged by creditors or the trustee. For instance, taking out a large loan or using credit cards right before filing could lead to accusations of fraud, potentially resulting in the denial of discharge for those specific debts. It’s crucial to provide full and accurate disclosure of all debts and discuss any recent financial transactions with your attorney to avoid complications.

Yes, an emergency bankruptcy filing can temporarily stop IRS collection actions, such as wage garnishments, tax liens, or levies. However, while the automatic stay halts collection efforts, it does not eliminate tax debt. In some cases, older tax debts may be dischargeable in Chapter 7 or subject to repayment in Chapter 13 or Chapter 11. The IRS can also request the court lift the stay if they believe collection should proceed. Consulting with an attorney is crucial to understanding how bankruptcy can impact your tax obligations and negotiating with the IRS as part of your bankruptcy strategy.

If a creditor believes they have grounds to continue collection actions, they can file a motion to lift the automatic stay. Common reasons for requesting a stay lift include situations where the creditor is secured by collateral, such as a mortgage or vehicle, or if they argue that their interests are not adequately protected. The bankruptcy court will hold a hearing to determine whether the stay should be lifted or remain in place. Your attorney will represent you during this process and argue why the stay should continue to protect you from creditor actions.

Choosing between Chapter 7 and Chapter 13 depends on your financial goals and the nature of your debt. Chapter 7 provides immediate debt relief through liquidation of non-exempt assets, offering a quicker resolution for individuals with few assets and overwhelming unsecured debt. Chapter 13 allows you to create a structured repayment plan over three to five years, which is beneficial if you want to keep your home or other assets and have a steady income. Your attorney can assess your financial situation to determine which chapter is most appropriate for your emergency filing.