Filing An Emergency Bankruptcy
Emergency bankruptcies, also known as skeleton bankruptcy filings, can help debtors speed up the filing process and get an automatic stay faster.
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Published on Jan 28, 2021


Debt collectors often act fast, and, in some cases, borrowers need a quick solution to stop a collection from happening. One solution is filing an emergency bankruptcy, also known as a skeleton bankruptcy filing.


So what is an emergency bankruptcy, and when would a client need one?



What is an emergency bankruptcy?

An emergency bankruptcy is one that is filed quickly to stop creditor action. When a Chapter 7, 11, or 13 bankruptcy is filed, an automatic stay goes into effect immediately, which means that creditors can no longer collect debts from borrowers. The automatic stay is meant to help debtors find instant relief while they create a plan to pay off their debts. Emergency bankruptcies give borrowers this protection much faster.



Why would a client need to file an emergency bankruptcy?

The pandemic has impacted the economy significantly, and many Americans are still without work or have had to close their businesses. Even while there has been some recovery, there are still 10 million fewer Americans working now compared to when the COVID-19 pandemic began.


Many people may be struggling to pay off credit card or loan debt or pay their mortgage payments. When this is the case, emergency bankruptcies streamline the filing process so that automatic stay goes into effect and a creditor’s action to collect is halted.


For example, if a client is facing a foreclosure on their home, they need to file a bankruptcy much faster than normal so that the case is started right away and the foreclosure action cannot occur.



How to file an emergency bankruptcy with NextChapter

It’s fast and easy to file with NextChapter’s emergency bankruptcy software. When you’re working on a case, head to the Review & File section, and select Emergency Filing under Petition PDF Packet. Then, all necessary documents will be added to the Petition PDF Packet, including the voluntary petition, creditor matrix, verification of creditor matrix, notice for individuals filing for bankruptcy, and attorney’s disclosure of compensation.


Documents will be filed with the court, and you can file any remaining documents from the Download & Print section by uploading them to the court’s site after filing.



NextChapter helps you be there for your clients when they need to file a streamlined bankruptcy. Sign up and learn about all the other benefits the software has to offer to speed up the case management and filing processes.