Bankruptcy During COVID-19: What You Need to Know

 Posted on June 18, 2020 in Uncategorized

The coronavirus outbreak has created an unprecedented situation that has placed the majority of people in financial hardships. Unfortunately, a lot of people have been laid off due to the pandemic which means less money to pay for their bills. And while you may be doing your part by saving as much as you can, it’s almost impossible to stop debt from accumulating.

Local, state, and federal governments are providing safety nets along with many creditors during the COVID-19 crisis. For several people increased unemployment benefits, mandated holds placed on evictions, cash payments, and utility shut-offs will help to make this situation more manageable. However, this crisis might last longer than expected so these measures won’t guarantee financial stability in the long run. The best thing to do is to be prepared and have a plan that will ensure you’ll get back on your feet during these tough times.

Qualify for Bankruptcy During COVID-19 Times

Bankruptcy may be the best route for people who can’t find a clear path through the coronavirus financially. In this case, the sooner you file for bankruptcy the faster you’ll be able to rebuild your credit. What does it mean to file for bankruptcy in COVID-19 times? Bankruptcy has the ability to discharge medical bills, credit card debts, and rent. These debts will rise during the pandemic.

Keep in mind that child support arrears, student loan debts, and newly acquired tax debt are some type of debts you can’t discharge with bankruptcy. On one hand, Chapter 7 is one of the easiest and fastest chapters in bankruptcy. On the other hand, while intended for higher-income people, you can get more time to pay for your debts with Chapter 13.

Acker Warren, P.C. Bankruptcy Law Experts

Our firm is open and available to help you. Due to COVID-19, we’ll conduct your consultation remotely, through a video-conference or by phone. Don’t hesitate to contact us if you have any questions.