IMPORTANT COVID-19 UPDATE
Bankruptcy and the Coronavirus/COVID-19
If you are experiencing a loss of income or an increase in expenses as a result of the COVID-19 pandemic, bankruptcy may be a good option to help you reorganize your finances, keep your property, and regain secure financing footing as you endure this crisis and its aftermath.
Certain measures have been implemented by the federal government to help people during this time. These measures include stimulus payments, supplemental unemployment benefits, and mortgage payment relief for federally backed mortgages. However, the magnitude of this situation is far more severe that anyone anticipated, and these short-term benefits may not provide relief for every financial situation, particularly for those who were already experiencing financial difficulties prior to the pandemic. In addition, many families have had to incur additional debt to finance living expenses during periods of job loss or business closures. These debts will be difficult for some to repay, even when their income resumes.
Bankruptcy can offer help in these difficult times and provide much needed relief. People often hear the work “bankruptcy” and think of it as a last resort, or that it will do more harm than good. People do not realize the benefits that bankruptcy can provide and are unaware of how bankruptcy actually works. If more people did know the options available through bankruptcy, more people would consider it as a viable and effective means of restructuring their finances and regaining financial security. Bankruptcy can be particularly beneficial for families whose income and finances have been affected by the COVID-19 pandemic. It can help them keep property that they are at risk of losing, allow them to eliminate some debts while reorganizing other debts, and develop a plan that will allow them to recover from the financial hardships they have suffered. Bankruptcy can stop creditors from calling and harassing you, stop creditor lawsuits, and stop repossessions and foreclosures. I have heard stories of people draining their 401(k) accounts to pay debts during this time. Bankruptcy could offer a means of dealing with debt without resorting to withdrawing from retirement accounts and spending the money you have worked so hard to save for the future. In addition, bankruptcy can be a stepping stone to rebuilding credit in far less time than most people realize.
If your income has been impacted by the COVID-19 pandemic and if you are curious about the relief that a Chapter 7 or Chapter 13 bankruptcy can provide, please contact us to schedule a free consultation. We offer several options for conducting consultations while also following CDC recommendations to prevent the spread of COVID-19. We look forward to offering you some much needed assistance during this difficult time.