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Emergency Bankruptcy Lawyer
An emergency bankruptcy is a type of bankruptcy filing that aims to speed up the process of filing for bankruptcy in order to halt creditors and bill collectors from pursuing debts owed by the borrower. An individual can file an emergency bankruptcy, also referred to as a skeleton bankruptcy, under Chapter 7 and Chapter 13. In some instances, businesses may also file for emergency bankruptcy under Chapter 11.
Sometimes you need relief fast. If you are facing a foreclosure sale, wage garnishment, or a car repossession, an emergency bankruptcy may be the right option for you.
If you are looking to file an emergency bankruptcy, having the help of an experienced New Jersey emergency bankruptcy lawyer is important. At Straffi & Straffi Attorneys at Law, our team of skilled New Jersey bankruptcy attorneys provides quality legal assistance to individuals and businesses seeking to file an emergency bankruptcy and receive an automatic stay to creditor claims. We can also assist in determining which types of debt can be discharged in bankruptcy, such as medical debt.
To learn more about how we can help you, call us today at (732) 341-3800 to schedule a free consultation.
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Emergency bankruptcy, also known as “skeleton” or “bare-bones” bankruptcy, is a quicker process of filing for bankruptcy protection to prevent imminent financial actions such as foreclosure, repossession, or wage garnishments. The primary purpose of an emergency bankruptcy filing is to provide debtors with immediate relief from their current financial distress.
It involves submitting a minimal set of documents to obtain the automatic stay quickly. This stay prevents creditors from continuing with most collection actions and gives the debtor time to complete the full petition. To start an emergency case, courts typically require at least:
Many courts also require filing the credit-counseling certificate with the petition, unless you file an exigent-circumstances certification under 11 U.S.C. §109(h)(3) and complete counseling within 30 days.
Some types of collection actions that can be prevented by an emergency bankruptcy include the following:
Once the emergency petition is filed, the automatic stay provision found in the U.S. Bankruptcy Code comes into effect, which bars creditors from taking any collection actions against debtors. Emergency bankruptcy is critical for people struggling with severe financial issues who need prompt protection from their creditors in order to regain control over their finances.
The primary difference between regular and emergency bankruptcy filings lies in the speed and thoroughness of the process. A regular bankruptcy filing requires the debtor to submit a full set of documents, including the bankruptcy petition, schedules, and statement of financial affairs. This comprehensive process can take a considerable amount of time due to the amount of paperwork involved.
On the other hand, emergency bankruptcy filing necessitates the submission of only a few critical forms, thus hastening the process. Once the emergency bankruptcy petition is filed, the debtor has 14 days to submit the remaining required documentation. Failure to do so may result in the dismissal of the bankruptcy case.
However, it is essential to note that emergency bankruptcy offers temporary relief and should not be considered a complete solution to financial problems. Despite the expedited process, the debtor must still work through the entire bankruptcy procedure and participate in mandatory credit counseling and debtor education courses, as they would in a regular bankruptcy case.
Emergency bankruptcy filings are available under Chapter 7 and Chapter 13 of the U.S. Bankruptcy Code.
Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, entails the sale of non-exempt assets by a court-appointed trustee to repay creditors. Eligible debtors who have little to no disposable income can obtain debt relief within a few months under this filing. Once the bankruptcy is discharged, the debtor is no longer liable for most unsecured debts.
Chapter 13 bankruptcy, or “reorganization” bankruptcy, is designed for debtors with regular income who can afford to repay a portion of their debts through a court-approved repayment plan. This type of filing enables debtors to retain their assets, such as their home or car, provided they adhere to the approved repayment plan, which typically lasts between three to five years.
Debtors who wish to file for emergency bankruptcy must meet specific criteria, which vary depending on the bankruptcy chapter they are filing under.
For Chapter 7 emergency bankruptcy, the debtor must pass the Means Test, which compares the debtor’s income to the state median income to determine whether they have the financial means to repay their debts. If the debtor’s income falls below the state median, they are generally eligible for Chapter 7 bankruptcy. The income requirement applies to the number of persons in the applicant’s household.
For cases filed on or after April 1, 2025, the annual median income that would apply for a one-earner household in New Jersey is $84,257.
Depending on the size of the household, this threshold also increases accordingly:
Chapter 13 emergency bankruptcy requires the debtor to demonstrate that they have sufficient income to cover a portion of their debts in the proposed repayment plan. Additionally, Chapter 13 eligibility depends on two separate debt caps (not a single combined cap). As of April 1, 2025, under 11 U.S.C. §109(e), unsecured debts must be under $526,700 and secured debts under $1,580,125. Congress’s temporary combined $2,750,000 cap expired on June 21, 2024.
Furthermore, debtors seeking emergency bankruptcy relief must attend credit counseling from an approved agency within 180 days before filing their petition. This step is crucial in determining whether bankruptcy is the appropriate solution for the individual’s financial circumstances.
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Compared to a regular bankruptcy filing, an emergency bankruptcy filing is more time-sensitive. It is important to carefully adhere to the requirements of filing bankruptcy to avoid the possibility of the petition being dismissed.
The first step in an emergency bankruptcy filing is submitting the necessary forms and petition file documents to the bankruptcy court.
In New Jersey, this involves completing and submitting the following forms:
You must also include a certificate that you have undergone sufficient credit counseling related to the bankruptcy filing. In addition to these forms, a filer must also pay the required filing fee or submit a request for a fee waiver or installment plan. The filing fee is $338 for Chapter 7 and $313 for Chapter 13. You may request to pay in installments (Official Form 103A). A fee waiver is available only in Chapter 7, and only if your household income is below 150% of the federal poverty line and you cannot pay in installments (Official Form 103B). Chapter 13 fees cannot be waived.
Upon the filing of the emergency bankruptcy petition, an automatic stay goes into effect. This court order immediately halts most collection activities by creditors, including lawsuits, wage garnishments, and even foreclosure actions. In New Jersey, the automatic stay applies to all creditors listed in the initial filing, offering the debtor a breathing space to regroup and complete the necessary bankruptcy paperwork without the pressure of impending collection actions or court dates.
The court sends notice of the filing and automatic stay to your listed creditors soon after you file, but timing can vary. If any action is imminent (e.g., a sale, garnishment, or eviction), you or your lawyer should directly notify the creditor or sheriff immediately with your case number to ensure they stop.
For New Jersey residents evaluating this choice, obtaining counsel from an attorney with a background in bankruptcy law is a critical step. An attorney can manage the legal proceedings, assist in meeting all local court rules and procedural demands, and recommend a strategy suited to the individual’s financial condition.
The automatic stay is powerful, but it is not absolute. Some actions do not stop at all. Criminal cases continue. So do child support and alimony collection, police or regulatory actions by a government agency, and certain tax audits, deficiency notices, and assessments.
If a landlord already has a judgment for possession before you file, the stay generally doesn’t stop the eviction (§362(b)(22)). There’s a narrow path to delay: file the required certification and deposit with the clerk the rent that would become due during the 30 days after filing, and certify you can cure the entire monetary default within 30 days (§362(l)). Evictions based on property endangerment or illegal drug use can proceed upon the landlord’s certification (§362(b)(23)).
Leases for nonresidential property that ended before filing are not protected. Certain pension loan withholdings and an income tax refund setoff by the government can also occur.
Creditors can also ask the court to lift the stay. They file a motion and must show cause, like missed payments on a car, a home, or a lack of adequate protection for their collateral. If the judge grants relief, that creditor may restart foreclosure, repossession, or a lawsuit.
Repeat filings trigger strict limits. If you had a bankruptcy case pending in the last year, the stay ends after 30 days unless you promptly move to extend it; with two or more cases dismissed in the last year, no stay arises unless you file and win a “Motion to Impose Automatic Stay.”
Additionally, co-signers are not protected in Chapter 7. Chapter 13 has a separate co-debtor stay that can shield a consumer co-obligor.
If any of these gaps apply to you, a New Jersey emergency bankruptcy attorney can move fast to extend or impose the stay, defend a lift stay motion, or steer you toward the chapter and timing that best protects your home, wages, and car.
After the emergency filing, you have 14 days to submit the remaining required bankruptcy documents, including the following:
Failure to submit these documents within 14 days may result in your case being dismissed, so it is essential to gather this information quickly.
The §341 meeting of creditors is typically set 21–40 days after the order for relief (and 21–50 days in Chapter 13), per Fed. R. Bankr. P. 2003(a). During this meeting, a bankruptcy trustee will review your submitted documents and ask questions to understand your financial situation better. Any statements made during the meeting and any questions answered should be done so truthfully under threat of perjury. Creditors may also attend and ask questions regarding any assets or any questions regarding the administration of the case. Despite the name, creditors are not required to attend the 341 meeting and do not waive any rights to claim on a debtor’s debt with their non-attendance.
It is essential to attend this meeting, as failure to do so may result in your case being dismissed.
Depending on your specific circumstances and the chapter under which you filed for bankruptcy, you may be required to attend additional hearings in court. For example, if you file under Chapter 13, you will need to attend a confirmation hearing where the judge will either approve or deny your proposed repayment plan.
You must continue making payments, as required by your payment plan, and stay in constant communication with your attorney and trustee throughout the bankruptcy process.
Upon successful completion of all required steps and meetings, and after addressing any creditor objections or court concerns, the bankruptcy court will issue an order discharging your eligible debts.
It is crucial to remember that not all debts are dischargeable in bankruptcy, and some debts may survive the process. Examples of non-dischargeable debts include student loans, certain tax debts, and child support or alimony.
After the court issues the discharge order and closes your case, you can begin focusing on rebuilding your credit and moving forward with your financial life.
Filing for emergency bankruptcy can have a lot of benefits for debtors who are in a vulnerable financial situation. However, it is not a universal solution to financial problems. Before you make any decisions, consulting an experienced New Jersey bankruptcy attorney is important. Our team of skilled attorneys at Straffi & Straffi Attorneys at Law can conduct a comprehensive evaluation of your case, help you understand your options, and assist you in making an informed decision.
Contact us today at (732) 341-3800 to schedule a consultation.
When contemplating an emergency bankruptcy filing in New Jersey, it is important to recognize the detailed procedures and legal stipulations involved. Although a person has the option to file for bankruptcy without legal counsel, known as filing “pro se,” this course of action is generally discouraged, particularly when immediate relief is sought. The process involves numerous technical rules and requires the accurate completion of various official forms. An error or omission can lead to the dismissal of the case and may negatively impact future filings. Therefore, securing representation from a qualified attorney is strongly recommended to navigate the legal requirements effectively.
Emergency bankruptcy filings, often termed “skeleton” filings, require submitting just enough forms to initiate the process, typically to halt a foreclosure or other urgent creditor action through an automatic stay. The complete set of required documents must be submitted within a short period. This expedited process leaves little room for error, as any oversight can lead to the dismissal of the case or loss of critical protections.
The regulations that govern bankruptcy are detailed. A simple mistake, such as failing to file a mandatory document like the credit counseling certificate, can have severe consequences. It might not only result in the dismissal of your bankruptcy case but also restrict your ability to refile in the future or diminish your protections in subsequent filings.
Given these challenges and the high stakes involved, hiring a competent attorney is strongly recommended. An experienced bankruptcy lawyer can ensure that all paperwork is completed accurately and filed on time, provide legal advice tailored to your specific situation, and help safeguard your rights throughout the bankruptcy process.
Daniel Straffi, Jr. helps New Jersey individuals and business owners steady the ship when creditors are closing in. From urgent petitions that trigger the automatic stay to guiding clients through Chapters 7 and 13, he brings calm, clear strategy to true time-sensitive financial crises.
Admitted in 2001 (NJ, PA, and the U.S. District Court for the District of New Jersey), Mr. Straffi pairs courtroom experience with practical, solutions-first counsel. A Boston College graduate (’98) and Rutgers–Camden law alum (’01), he clerked for the Presiding Judge of the Mercer County Family Part, the Hon. Lee Forrester, P.J.F.P., practiced negligence defense at Cooper Levenson, and joined his family’s firm in 2004. Today, his work spans bankruptcy, divorce, and criminal defense, and he serves the bar as Co-Chair of the Ocean County Bankruptcy Panel as well as a certified mediator and early settlement panelist.
Filing for emergency bankruptcy in New Jersey can provide immediate relief from creditors and halt adverse actions like foreclosure and repossession. However, it also has significant implications for a debtor’s credit and financial situation that can last for several years.
Immediately following an emergency bankruptcy filing, the debtor’s credit score will typically see a substantial decrease. This is due to the fact that the bankruptcy filing is a negative credit event and will be listed on credit reports. The automatic stay that comes with the bankruptcy filing will stop creditors from pursuing collection activities, but the associated debts will still remain until they are discharged or reorganized.
In the long term, the impact of a bankruptcy can remain on a debtor’s credit report for up to 10 years for Chapter 7 and 7 years for Chapter 13. The long-term effect on credit can make obtaining new credit lines more difficult and more expensive, with higher interest rates and less favorable terms.
One of the most significant challenges that you will face post-bankruptcy is rebuilding your credit. After bankruptcy, it is crucial to start rebuilding your credit as soon as possible to achieve financial stability in the future.
To begin the process of rebuilding credit, start by regularly checking your credit report to ensure that all of the information is accurate and up-to-date. You should also monitor your credit score regularly to track your progress.
Consider applying for a secured credit card or a loan to begin rebuilding your credit. A secured credit card requires an upfront deposit that acts as your credit line, allowing you to demonstrate responsible credit use by making on-time payments and maintaining low balances.
Additionally, make sure to always pay your bills on time and in full, as late or missed payments can damage your credit score. If you are unable to pay a bill, reach out to the creditor to work out a payment plan or deferment before the due date, as this can help prevent negative marks on your credit.
Review your budget regularly and work towards reducing your debt, as lower balances will improve your credit utilization ratio, which is a significant factor in determining your credit score.
After bankruptcy, it is essential to establish healthy financial habits to prevent future financial difficulties. Begin by creating a budget that includes all of your monthly expenses, as well as saving for emergencies and other financial goals.
Take the time to review and adjust your budget monthly, ensuring that you continue to live within your means and work towards achieving your financial objectives.
Develop a savings plan to build a financial cushion that can protect you from future financial emergencies. Set aside a portion of your income each month to contribute to an emergency fund, and consider establishing separate savings accounts for specific financial goals, such as buying a car or going on vacation.
Furthermore, educate yourself about personal finance and money management. There are numerous resources available online and in print that can help you learn about saving, investing, and managing your money effectively.
Emergency bankruptcy can affect your ability to obtain future loans. Lenders may view you as a higher-risk borrower, leading to either denied applications or higher interest rates and less favorable terms. However, over time, as you rebuild your credit, these effects will diminish.
Regarding employment, while federal law prohibits employers from discriminating against you for filing bankruptcy, some employers, especially in the financial sector, may consider credit history in their hiring decisions. It’s important to be honest about your financial history if it comes up in a job interview or background check.
In all aspects, the impact of emergency bankruptcy on an individual’s credit and finances is significant and requires careful planning and disciplined financial management post-filing. Consulting with a financial advisor or a bankruptcy attorney in New Jersey can provide guidance tailored to your specific situation.
Bankruptcy can have long-lasting effects on your financial life. Even after your debts have been discharged, the bankruptcy will remain on your credit report for up to 10 years, depending on the type of bankruptcy you utilized, affecting your ability to obtain favorable credit terms.
It is crucial to understand that bankruptcy is not a simple solution to wipe away your financial problems. It is a significant decision that should be made with careful consideration and as a last resort.
Over time, as you build positive credit history and maintain responsible financial habits, the impact of your bankruptcy on your credit score will diminish. However, it is essential to remain vigilant in your financial practices to avoid any potential future financial setbacks.
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Straffi & Straffi Attorneys at Law is a valuable resource for individuals who need immediate bankruptcy help. The firm handles the specific requirements of New Jersey’s bankruptcy laws, providing important legal support for its clients.
Here’s how a skilled emergency bankruptcy attorney from their team can assist those in dire financial straits:
An emergency bankruptcy filing requires immediate action. Straffi & Straffi Attorneys at Law can quickly assess your situation and determine the fastest way to file an emergency bankruptcy petition, often known as a “skeleton” petition. This can provide immediate relief by triggering an automatic stay against most collection actions, including lawsuits, garnishments, and harassing phone calls.
The statutes governing bankruptcy in New Jersey include detailed provisions that are critical for a successful emergency filing. Straffi & Straffi’s attorneys have the experience necessary to navigate these laws effectively, helping clients choose the correct type of bankruptcy (Chapter 7 or Chapter 13), properly apply New Jersey or federal exemptions to protect assets, and meet all local and federal legal requirements.
The initial emergency filing may require only a few forms to trigger the automatic stay, but the full documentation must be submitted within a short timeframe thereafter. Straffi & Straffi’s attorneys can assist in preparing and completing all necessary paperwork, reducing the risk of dismissal due to clerical errors or missed deadlines.
After your emergency bankruptcy petition is filed, you’ll be required to attend a 341 meeting, or meeting of creditors. The attorneys at Straffi & Straffi can represent you during this meeting, helping to address any concerns raised by the trustee or creditors.
Straffi & Straffi can help clients fulfill the legal requirements for credit counseling and debtor education by providing information on approved agencies and ensuring that certificates of completion are filed with the court.
Following your emergency bankruptcy filing, the need for legal counsel and representation can continue. Straffi & Straffi’s attorneys can provide ongoing support by managing post-discharge creditor disputes and addressing matters that involve the bankruptcy trustee.
Following the bankruptcy discharge, Straffi & Straffi can offer guidance on rebuilding your credit and managing your finances to avoid future financial distress, thus helping you make the most of your fresh start.
If creditors continue to pursue you after the filing, Straffi & Straffi can take legal action on your behalf to enforce the automatic stay and, post-discharge, to ensure that your discharged debts are not unlawfully collected.
Straffi & Straffi Attorneys at Law can provide comprehensive legal assistance to those needing emergency bankruptcy relief. From the initial filing to post-discharge planning, our skilled New Jersey attorneys can help ensure that you comply with legal requirements and obtain the financial relief you need.
| Key Service | What This Means | Benefit to Clients |
|---|---|---|
| Rapid Response to Financial Crises | Filing a “skeleton” petition to immediately stop creditor actions | Immediate relief from lawsuits, garnishments, and collection calls |
| Knowledge of NJ Bankruptcy Laws | Guidance on Chapter 7 vs. Chapter 13 and applying exemptions | Helps protect assets and ensures compliance with state and federal law |
| Accurate and Timely Documentation | Assistance with preparing and filing all required bankruptcy paperwork | Reduces risk of case dismissal due to errors or missed deadlines |
| Representation at Meeting of Creditors | Legal support during the 341 meeting with trustee and creditors | Clients have an advocate to address questions and challenges |
| Counseling and Education Requirement Assistance | Guidance on approved credit counseling and debtor education agencies | Ensures all mandatory certifications are completed and filed |
| Ongoing Legal Support | Continued representation after filing and during disputes | Helps resolve post-discharge creditor issues and trustee concerns |
| Post-Discharge Guidance | Advice on rebuilding credit and managing finances | Supports long-term financial recovery and stability |
| Addressing Creditor Harassment | Enforcing the automatic stay and protecting clients post-discharge | Prevents illegal debt collection and provides peace of mind |
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Contact us to schedule a free legal consultation so we can discuss your case together.
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Having the help of a skilled attorney can be helpful regardless of the stage of filing you are in. If you are just starting to collect information on how to file for bankruptcy and which type of bankruptcy would suit your case, an attorney can conduct a careful evaluation of your financial situation, recommend the appropriate chapter, and assist you in filing the necessary paperwork.
An attorney can also provide counsel and assistance when dealing with challenging financial circumstances. For example, they can help with renegotiating loan terms, stopping creditor harassment, or addressing tax disputes.
At Straffi & Straffi Attorneys At Law, we provide comprehensive legal assistance to New Jersey residents who need immediate financial relief from debt. Our team of experienced New Jersey emergency bankruptcy lawyers can help protect your rights and assist in handling potential legal challenges. Our attorneys employ a proactive and tailored approach that aims to help you maintain financial stability and continue on the path to a healthy and successful financial future.
To schedule a consultation, contact our office today at (732) 341-3800.