Watch Out For The Emergency Bankruptcy Scam
Filing an emergency bankruptcy claim is one way to halt a foreclosure or repossession, but you should be aware of attorneys or advocates who advise you to immediately file an emergency petition. Even the best bankruptcy attorneys in the world take time to file all the paperwork required for your bankruptcy claim. Most bankruptcy claims require excess of 50 pages of paperwork. In most bankruptcy proceedings, regardless of type, the court will require:
- Comprehensive schedules that include a detailed list of all creditors that contain all addresses and accounts, a list of all assets and their approximate value, a comprehensive budget, and much more.
- Your plan for paying your creditors (Only for a Chapter 13 Bankruptcy)
- Your certificate stating you attended credit counseling classes
- Pay stubs for the past 6 weeks or longer
This amount of paperwork takes time to put together, and a bankruptcy attorney will do his best to make sure that the paperwork is perfect and there are no mistakes. Even the smallest mistake can delay bankruptcy proceedings. Most attorneys will require a week to ten days to complete your paperwork and file your bankruptcy.
In the case of emergencies such as imminent foreclosures or repossessions, the courts do allow you to file what is known as emergency bankruptcy petition, or a 2-page petition. This emergency bankruptcy petition is only the first 2 pages of the entire petition. By filing this type of petition, you agree to file the remainder within fifteen days.
While an emergency petition is an option for those facing an imminent threat, it is to be used for emergencies only. Unfortunately, there are some unscrupulous “bankruptcy advocates” and attorneys who misuse the emergency petition. These scammers will ask for money up front and file an emergency petition. They know that the creditor calls will stop. You won’t receive any more threatening letters. You will think everything is just fine.
Unfortunately, it is far from fine. These scammers never file the remainder of the paperwork. They pocket your money and disappear into the night. You are left holding the bag. Your bankruptcy petition will likely fail, and you will be worse than you were before.
You should be aware of attorneys or advocates that advise you to file an emergency petition immediately. If there is not a plan in place to complete the rest of the filing quickly, you may soon become the victim of a bankruptcy scam. In reality, a competent bankruptcy attorney should be able to complete and file all of your paperwork within fifteen days. If he is not able to do this, find another attorney. There are plenty out there.
At the Law Offices of Bonnie L. Johnson, we help our clients with their bankruptcy cases no matter how big or small. We do not take shortcuts. We make sure that all the paperwork is filed quickly and correctly. To speak with one of our bankruptcy attorneys, please call us at 214.748.4848 or send us an e-mail at Questions@BLJLaw.com to schedule your free attorney consultation.
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