Bankruptcy Consideration in the Light of Coronavirus Pandemic
Financial uncertainty is something that millions of people are currently facing during the Coronavirus pandemic. Those families and individuals that were living paycheck to paycheck or doing a balancing act to stay ahead may have very well fallen behind on critical payments. While waiting for economic stimulus plans or other one time payments might help in the short term, we are currently dealing with a long term problem that does not look like it is going to ease up any time soon. This leaves groups of people that are out of work or that cannot afford their payments in a limbo considering bankruptcy or other options that they might have.
How Has the Coronavirus Pandemic Affected Individual Finances?
One thing that everyone certainly needs to remember is that this current state of affairs is something that most households were simply not prepared for. Though many financial experts tout the benefits of having “six months worth of bills saved up,” for the vast majority of people, this is simply not possible. So where does that leave workers that are just scraping by or that are out of work? For those groups of people that do not have the money saved up to go for months on end without a paycheck, bankruptcy is a reality that they may end up having to face.
It is times like these and situations like these that tip the scales for families and individuals that were either on the verge of bankruptcy or considering it before the virus broke out. What it is important to remember is that bankruptcy is not giving up or throwing in the towel, it is a simple admission that you need help and that you are willing to seek out viable options.
Why Are People Turning to Bankruptcy During the Pandemic?
For some, being able to stay ahead of bills is not something they can do in the current economic climate. For many, mortgage payments, rent, grocery bills, and credit card debt are quickly piling up as money and paychecks are simply not coming in. Sure, economic relief payments from the Federal government help put a band – aid over the issue, but they do not solve the entire problem. Bankruptcy in times like these may be the only option for some as they simply do not have the means by which to continue making the payments they were making prior to the shutdown and prior to the pandemic.
Though bankruptcy is not something to be ashamed of, it is also not something to be taken lightly. Those that are considering bankruptcy should take the time to weigh their options and to consider what is going to be the best overall option for their particular set of circumstances and their particular issues.
What to Keep In Mind Before Filing Bankruptcy
The first thing that you want to do before you file or before you seek the help of a bankruptcy law firm like Berneman Law Firm is what expenses you have and how far behind you are in payments. Knowing this can help you determine is a consolidation loan is better or if bankruptcy truly is the best option for your needs.
You also need to talk with a bankruptcy lawyer to help you determine which type of bankruptcy is going to work best for you. Chapter 13 bankruptcy is also referred to as the wage earner’s plan by some and is best for individuals that are filing to help wipe out their personal debt. This can be credit card debt, high interest loans and more and it does offer the filer a chance to create a payment plan for those debts that they want to keep or reaffirm. This mean if you want to default on all your credit card debt but keep your home and mortgage, you can reaffirm that loan under new terms that you can handle.
Another form of bankruptcy that might work for you if you have a business for instance that you are going to be getting rid of is chapter 7 bankruptcy or liquidation bankruptcy. In this case the debt is going to be paid off with the money from the items to be liquidated and the remainder is going to be the responsibility of the debtor. No matter what type of bankruptcy you decide is right for you, the help of a great law firm can truly move the process along and make for a better overall experience.
For those that are struggling to pay the bills during this difficult time, Berneman Law Firm is here for you. We can help you determine what type of bankruptcy is best for you, chapter 13 or chapter 7 bankruptcy and all those in between, and we can help you through the process. Filing bankruptcy does not have to feel like defeat when you have a good team on your side.