Agreeing to bankruptcy is a decision which takes time. people generally look for options to work out their debts in order to avoid bankruptcy. This is probably because bankruptcy appears on your credit report for 7-10 years. Though it is an excellent way to get rid of debts as well as put a stop to collection actions, lawyers of Dallas based bankruptcy law firm Recovery Law Group, inform that you should be aware of unscrupulous lawyers who are out to get your money in the name of emergency bankruptcy filing.
Filing for bankruptcy can help you if you are facing repossession or foreclosure on your property. Generally, the procedure involves a lot of paperwork which takes time, even for the most experienced lawyers. When any individual files for bankruptcy, they are required to submit the following documents to the court –
- Paystub for the last 6 weeks or longer
- Certificate of your successful completion of credit counseling course
- Complete list of all your debts and creditors including their addresses
- A list of all your assets, your accounts, an approximate value of your assets, etc.
- A repayment plan for paying back your creditors in case of Chapter 13 bankruptcy.
All these documents require time to assimilate, prepare and file. Any mistake in the documents (omission of an important document, missing a creditor name or debt, etc.) can have grave consequences; sometimes leading to the dismissal of the case. If this happens, you are in a worse condition than before. Generally filing for bankruptcy takes 7-10 days’ time.
Emergency bankruptcy filing option is available in case you are facing imminent repossession or foreclosure issues. In this case, you can file a two-page petition which puts an automatic stay in action preventing all sorts of collection actions. However, you are expected to file the remaining documents within fifteen days of filing the emergency bankruptcy petition.
This procedure has become a way to earn money by corrupt bankruptcy lawyers who make use of the system to con gullible filers out of their money. These lawyers ask for money to file an emergency bankruptcy petition on your behalf but do not follow it up with the remaining documents. Filing of the petition puts collection actions like threatening phone calls on hold, till your petition is dismissed because of lack of proper documents. This leaves you in a condition worse than before.
It is therefore important to be vary of advocates who suggest emergency bankruptcy filing when you first meet them. Competent bankruptcy attorneys will take their time to study the case and come up with a suitable plan of action benefiting their client. If you are looking for experienced bankruptcy lawyers for your case, you can call 888-297-6023.