If you know that you need to file for bankruptcy to address your debts, you probably have started to learn about how long and complicated your petition can be. Gathering the documentation to support the information supplied in your petition can take several days for even the most proactive debtor, while many take weeks or even months to prepare. Emergency bankruptcy filings are available to debtors who need immediate protection from the automatic stay. The debtor only needs to determine their income level to select the correct chapter of bankruptcy, and they will be given additional time to assemble the rest of their petition. However, an emergency filing must be executed correctly for the debtor to enjoy all the benefits that bankruptcy has to offer. If you’re looking to file for bankruptcy quickly in the Phoenix or Tucson area, call 602-609-7000 to schedule your free consultation with our firm.
1. You Need Your Car To Get To School Or Work And It Is At Risk Of Being Repossessed
While your housing is likely the largest expense in your monthly budget, your vehicle is probably crucial in ensuring you have the funds to pay the rest of your bills. Falling behind on your auto payment presents a serious issue because lenders have far less strict guidelines for vehicle repossessions than for home foreclosures. Most auto loan contracts have provisions allowing the lender to repossess the vehicle almost immediately after missing a payment. This can create a domino effect if losing your car causes you to lose your job and fall behind on other monthly expenses. Even worse, if your car sells at auction for less than the balance of the loan (plus legal fees, repossession fees, etc.), you will be left with a debt known as a repossession deficiency. If left unpaid, the lender can pursue you through a lawsuit as described below.
Filing for bankruptcy can stop a vehicle repossession before it occurs. This is because once the bankruptcy petition is filed, creditors are no longer allowed to take creditor actions against the debtor without special permission from the court. If you have ever dealt with a repo man, you know that this is just about the only way to stop one from completing their assignment. You can keep your vehicle in a locked garage or store it somewhere the repo man won’t find it if you know your lender is looking to repossess. But without the protection from the automatic stay, your vehicle can be taken from a parking lot, or even your driveway. If you need to file for bankruptcy fast, emergency filings can typically be completed in just a few hours. Learn more by scheduling your free consultation with our firm at 602-609-7000.
2. You Have Received A Summons For A Creditor Lawsuit Against You
Nowadays, most people don’t answer the door unless they expect a guess. It’s usually to avoid salespeople and political canvassers, but if you’ve fallen behind on your bills, one of those knocks on the door may eventually be a process server bringing you a notice of a creditor lawsuit against you. While you will be given a chance to respond and present arguments against the alleged balance owed, the vast majority of people in this situation simply ignore the summons and hope for the best. This allows the creditor to secure a default judgment against the debtor. The creditor can do a few different things with that judgment, but if you are employed, their preferred method of collection is a wage garnishment. You can find more information about wage garnishments in Arizona below. You can stop this process at any time, including when you first receive your summons, by filing bankruptcy to enact the automatic stay.
3. You Are Facing Home Foreclosure
A large part of the American dream is owning your own home. If you have crossed the finish line from renting to owning, you probably don’t want that ripped away from you through a home foreclosure. You should receive plenty of notice before your lender sells your home at a foreclosure auction. A sale can’t be held until at least 91 days have passed since the notice was filed. Like a repossession, the borrower can be left with a foreclosure deficiency if the home sells for less than the balance due. Bankruptcy can stop the foreclosure if the petition is filed before the auction begins. Ideally, the debtor won’t wait until the last second to activate the automatic stay and stop the foreclosure, but in dire straits, emergency bankruptcy can shield the debtor from creditors more quickly than a standard filing.
4. A Garnishment On Your Wages Is About To Begin
Wage garnishments are creditors’ preferred method of collection because they offer more of a guarantee than other options available. A creditor can use a judgment, including a default judgment, to request a writ of garnishment from the court. This writ is served upon the debtor’s employer, which can be an embarrassing experience. This information is given to payroll so they know that a standard portion of each of your paychecks is to be automatically deducted and sent to your creditor. Generally, in Arizona, this is 25%, but can be reduced to 15% upon a showing of financial hardship by the debtor. Child support garnishments have much higher maximums based on the number of dependents. Check with your attorney to confirm that your filing will be effective against your wage garnishment. For your free consultation with an experienced Arizona bankruptcy lawyer from our firm, call 602-609-7000.
5. Your Phone Rings Off The Hook With Creditor Calls
When you owe multiple entities money that you can’t afford to repay, you might have a practice of letting calls from unknown numbers go straight to voicemail. There are only so many times your creditor will be flexible about creating alternative payment arrangements, and some creditors may even be outright hostile. There are certain standards creditors are supposed to abide by while calling as collection attempts, but even those can be stressful and annoying. Creditors are not allowed to call you once you have filed for chapter 7 or chapter 13 bankruptcy. Additionally, if you let your creditors know about retaining a bankruptcy lawyer, they are no longer allowed to directly contact you about your debt. Creditors who continue to contact debtors in active bankruptcy cases can face sanctions.
File For Bankruptcy Fast With My Arizona Lawyers
Not everyone has the opportunity to thoroughly prepare their bankruptcy and file it at the most strategic time. These benefits can easily be outweighed by the costs of creditor collection actions like lawsuits, wage garnishments, repossessions, and home foreclosure. If you find yourself in any of the situations described above, an emergency bankruptcy filing may be the most effective way to address your debts. Putting off filing only increases the risk that you will lose funds or assets that will be difficult or impossible to get back. When you are able to provide your income information and just a few other documents, Arizona’s leading zero bankruptcy law firm can often complete emergency filings same day. Take back control and stop creditors from suing you, garnishing your wages, and more. Learn more about what is required for the emergency bankruptcy process with your free consultation by phone. Call 602-609-7000 to get started today.
Arizona Offices
Phoenix Location:
343 W Roosevelt Street, Suite #100
Phoenix, AZ 85003
Email: [email protected]
Phone: 602-609-7000
Mesa Location:
1731 West Baseline Rd., Suite 101
Mesa, AZ 85202
Email: [email protected]
Glendale Location:
20325 N 51st Avenue, Suite #134
Glendale, AZ 85308
Email: [email protected]
Tucson Location:
2 East Congress, Suite #900
Tucson, AZ 85701
Email: [email protected]
Text Us
