What Is a Skeleton Bankruptcy Filing & How Does It Work?

How Filing an Emergency Bankruptcy Can Help Get Rid Of Debts Collectors

If you are being threatened by action from debt collectors and other creditors, one way that you can temporarily pause their efforts is by filing bankruptcy. Commonly known as a “skeleton bankruptcy,” an emergency bankruptcy filing will enable you to quickly stop collection activities such as repossessions, foreclosures, and wage garnishments. You’ll have an additional 14 days to file the remaining paperwork and documentation that is required for the bankruptcy filing while taking advantage of immediate protection from creditors.

In order to file a skeleton bankruptcy, it’s crucial to work with a Reno bankruptcy attorney to make sure that all of your documentation is in order and submitted on time. If your remaining documentation is late, your petition will be dismissed and you will lose your temporary protection from creditor actions.

Like other types of bankruptcy filing, there are pros and cons to filing this type of emergency bankruptcy. Consult with your Reno bankruptcy lawyer to determine if a skeleton bankruptcy is the best option for you.

Why Do People File Skeleton Bankruptcy?

Most of the time, people choose to file an emergency bankruptcy for the immediate relief they receive from debt collection agencies. When someone is facing significant financial situations, the pressure from creditors can feel overwhelming, especially when facing a foreclosure, repossession, threat of utility service termination, or wage garnishments. A skeleton bankruptcy provides temporary relief so the debtor has time to consider their next actions, complete paperwork, and make plans.

What is Required to File Skeleton Bankruptcy?

A traditional Reno Chapter 7 bankruptcy filing will contain over 50 pages of information outlining your assets, expenses, debts, income, and other financial information. If you lack time or resources to complete all of the documentation immediately, a skeleton filing may be a good option because it requires just a few pages of information – the bankruptcy petition, creditor matrix, statement of social security number, and certificate of credit counseling – to get started with the process. The exact requirements will depend on the court where you file. Additional paperwork, such as copies of disclosure statements, may be required as well.

Can I File Online?

In Nevada, online filing is currently not an option unless you work with a Reno bankruptcy law office. However, some of the process can be completed remotely, including downloading the free forms, participating in credit counseling classes, and obtaining copies of your credit reports.

What Happens After I File Skeleton Bankruptcy?

Once you’ve filed your emergency petition, take note of your case number. You’ll need to contact your creditors, inform them of your emergency filing, and give them your case number. Your creditors must stop all collection activities. Contacting your creditors proactively can help relieve the pressure of the situation, especially if you are facing eviction or other drastic debt collection measures.

As soon as you file skeleton bankruptcy, the court issues an “automatic stay,” which is a court order that stops most collection actions until your case is concluded. However, it cannot stop some proceedings, such as:

Some tax proceedings
Child support, alimony, and similar support actions
Criminal proceedings
Pension plan loans

You will receive a notice from the court that you have 14 days to complete your filing or your case will be dismissed. Since filing a skeleton bankruptcy is just the bare minimum that is required to start the process, you’ll need to spend the next 14 days finishing the paperwork with your Reno bankruptcy attorney.

Pros and Cons of Emergency Bankruptcy

For people who are seeking immediate relief from debt collectors, filing an emergency bankruptcy can be an advantageous option. However, bankruptcy is not the best option for everyone. Be sure to consult with your Reno bankruptcy law office before beginning the process, because you may have alternative options that may be better for your situation. You may also want to seek assistance with the paperwork so you can avoid common mistakes that may happen when people file under stress or without the guidance of a qualified lawyer.

Should I Hire a Lawyer to File a Skeleton Bankruptcy?

Although you can file an emergency bankruptcy on your own, it can be very beneficial to have legal guidance throughout the process. Your Reno bankruptcy attorney can help you determine whether you’re eligible for bankruptcy, assist you with paperwork and documentation throughout the process, attend hearings on your behalf, and suggest alternatives. Generally speaking, the more complicated your situation, the more helpful it is to hire an attorney.

Talk with an Experienced Bankruptcy Lawyer in Reno

Although many law firms require upfront payment before they will work on your bankruptcy case, Zero Down Bankruptcy Lawyers of Reno requires no payment up front. You can get started with a friendly, professional legal team right away. Our firm provides personal attention with a dedication to excellence. Schedule your free consultation with us today!

Zero Down Bankruptcy Lawyers Of Reno