When you call a lawyer’s office for a bankruptcy appointment, be sure to let the support staff answering the phone know whether you are facing an immediate financial threat. Most potential clients who call my office are calling to obtain general information such as determining whether bankruptcy is the right solution for their financial problems. But occasionally, I get an emergency call–I call it the 911 call.
Garnishment and Repossession
A financial emergency is one that poses an immediate threat to your way of life. For example, you get your paycheck and discover that a creditor has begun garnishing your wages. Another immediate threat is the repossession of your car.
Being served with a lawsuit, isn’t really a financial emergency because a creditor can’t take immediate action against you. Filing a lawsuit is the first step in a long process that concludes with the execution of a judgment. A judgment is executed by garnishment, reposession, etc.
Foreclosure Sale of Home
The biggest threat, of course, is a foreclosure sale of your home. Some potential clients call when an auction is set for later in the week. Ideally, a homeowner who receives a notice of default should consult with a lawyer as soon as they receive that notice. If they receive a notice of sale, they definitely need to be on the phone right away.
Bankruptcy can stop a foreclosure auction, even if the petition is filed the day of the auction. However, filing at the last minute creates a lot of stress for both you and your attorney. Your attorney can file what’s known as a “skeletal” or “bare bones” petition which I’ll discuss in detail in another post.
Once filed the auction is called off. The lender can’t auction your house after the petition is filed without filing a motion in bankruptcy court, or waiting until after you receive a discharge.
Most financial emergencies are preventable by consulting a bankruptcy attorney when you first sense trouble brewing. I know most potential clients are cash-strapped and don’t want to add an attorney’s bill to their pile of problems. However, most bankruptcy attorney’s offer a free initial consultation and may be able to provide guidance during that first visit.
