Bankruptcy Filing will be on the Rise in New York and New Jersey as the Coronavirus spreads. 

The coronavirus is going to greatly impact individuals’ economic situations. Even if the coronavirus does not impact your health, it may stop you from going to work, force your employer to shut down or bankrupt your business. 

According to one study done by the New York Post, one in four Americans do not have enough money saved to cover more than two months of expenses and one out of every four people doesn’t have any savings. Moreover, a poll conducted on behalf of Chase bank showed that 40% of adults wouldn’t be able to cover unexpected expenses of more than $400. With the uncertainty of the coronavirus and these statistics, many individuals in New York and New Jersey will be forced to file bankruptcy. 

To date, many individuals and businesses are already heading towards filing bankruptcy in New York and New Jersey. Hospitality service providers have already begun to feel the impact. With consumers forced to stay home and laws restricting the number of people in these establishments, many of these employers and employees will lose their jobs.

Moreover, many medical experts believe that if infected with the virus it may take as long as three full weeks to recover. What will happen to the people who will have to miss three weeks of work? For many household expenses, mortgage payments, credit card payments and student loan payments will be missed. Many individuals get their insurances covered through their employment but if they are not employed they may end up with large medical bills. 

What If I Have to File a New Jersey Bankruptcy or New York Bankruptcy?

If you are worried that you may need the protection of the bankruptcy court within the next few months, don’t panic, you are not alone. People file for bankruptcy every day to help them get a fresh start. Bankruptcy laws were created for unexpected times like these to help people get a fresh start. It is important to speak with a New York bankruptcy lawyer or New Jersey bankruptcy lawyer as soon as possible to begin the bankruptcy planning process. 

It is important to understand that there are different chapters of bankruptcy to help individuals get debt-relief in New York and New Jersey. Chapter 7 bankruptcy, helps people by eliminating their debt completely. While a Chapter 13 bankruptcy, allows people to pay a certain portion of their debts back over a three to five-year plan. To determine which chapter of bankruptcy you qualify for, you will need to pass a means test. The means test averages out the last six months of your income and compares it to a household of similar size in New York and New Jersey. If your income is below the median household income, then you qualify for a chapter 7 bankruptcy. If your income is above the household median income for New York or New Jersey, then you will need to go to the second part of the means test. The second part of the means test allows you to deduct your income and expenses. 

Although you may not have to file bankruptcy right now, it is vital to speak with a bankruptcy lawyer if you think you will need help in the future. Many people try to hold off on filing bankruptcy when they are out of a job. What people don’t realize is that as you fall behind on bills during this time interest and fees accrue. Although you may feel determined to do everything in your power not to file a New York bankruptcy or New Jersey bankruptcy, not filing now may actually end up hurting you later down the road. Too often, people wait to speak with a bankruptcy lawyer once they already have a new good-paying job. Although the job may be paying a good salary, they may not be able to afford their regular monthly expenses while trying to play catch up on the debt they accrued while out of work. Keep in mind, that once your income is too high you may no longer qualify for bankruptcy. 

Why Should I Speak with a New Jersey Bankruptcy Lawyer or New York Bankruptcy lawyer Now? 

In order to file Bankruptcy in New York and New Jersey, there are certain steps that you can take to better prepare to ensure your bankruptcy runs smoothly. Bankruptcy laws are complex and hard to understand. Further, there are many things that people should not do before filing bankruptcy. Below, is a list of some of the things you should consider not doing before filing bankruptcy:

• Do not transfer property out of your name.
• Do not give away any property to friends or relatives. 
• Do not take out new loans or charge a bunch of debt on your cards. 
• Do not cash out your retirement accounts. 
• Do not transfer title to your property or car.
• Do not take your name off of a deed. 
• Do not give your friends or relatives gifts. 
• Do not pay back any friends or relatives for money they have loaned you. 
• Do not take all of the assets out of your business and sell them. 

Keep in mind that many lawyers give free consultations that you should take advantage of. The only thing it will cost you is your time. 

Karra L. Kingston Esq. is a New York bankruptcy lawyer and New Jersey Bankruptcy lawyer. Karra has helped hundreds of people get out of debt and start their lives over. With the impending threat of the coronavirus Karra L. Kingston Esq. is offering Free telephonic and electronic consultations.