If you have been impacted by the coronavirus, you are not alone. It has been reported that millions of Americans have applied for unemployment within the last few weeks. States and Federal Governments have been implementing different polices to help Americans survive this pandemic. Unfortunately, many still are facing financial repercussions.
Over the last few weeks, if you were some of the lucky few who received a stimulus check, it may have helped you a little. However, for most people, living in New York and New Jersey, the stimulus check is barley enough to cover one month of rent. Individuals who are minimum wage workers, and were already living paycheck to paycheck are more than ever facing even more economic hardship. With so much uncertainty bankruptcy may be an option to help you get out of debt and start over.
Many financial advisors have been saying that we will probably be entering a depression. The economic fall out from the coronavirus may take weeks or months to recover. If you are like many who rely on credit cards or taking out loans you may find yourself in a much worse situation after the next few months.
Why Should You Consider Filing Bankruptcy During COVID-19
If you are already struggling with debt or think that within the next few weeks you won’t be able to manage your monthly payments, you may be able to file for bankruptcy. Bankruptcy is a tool that helps people eliminate their debt.
If you file bankruptcy during the coronavirus, you may be able to relieve some stress. As soon as you file bankruptcy an automatic stay goes into place. The automatic stay stops any collection actions, foreclosures or bank levies. This is one of the strongest benefits of filing bankruptcy.
There are two types of bankruptcy that consumers can file. They can file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. A Chapter 7 bankruptcy, allows you to wipe out your debt completely. If you don’t qualify for a Chapter 7 bankruptcy, then you can file a Chapter 13 bankruptcy to help you get out of debt. A Chapter 13 bankruptcy puts you on a repayment plan over 3-5 years. Entering into a Chapter 13 repayment plan, stops high interest and fees from accruing. Filing a Chapter 13 bankruptcy will allow you to get on to an affordable repayment plan.
The CARES ACT has provided certain potential bankruptcy clients more protections. The CARES ACT has allowed individuals to not include their stimulus checks as income. It has also allowed invdividuals seeking to file a Chapter 13 bankruptcy, an extended payment plan.
It may be a good time to file now while your income is low. To qualify for a Chapter 7 bankruptcy, the Court takes in account your last 6 months of income. It then compares your income to the median household income in your state where you reside. If you have not been making your usual salary for the past three months, it may be a good time to file. Often, people wait until they are making too much to file bankruptcy and then don’t qualify for a Chapter 7. If your salary has significantly decreased due to the coronavirus pandemic it may be time to seek out a bankruptcy lawyer to help you now before you start making too much money.
How Can I File Bankruptcy During COVID-19
Bankruptcy Courts are still open and handling business as usual. Many of our clients have been eliminating their debts. Currently, Bankruptcy Courts are holding hearings remotely. Depending on what state you live in, the Bankruptcy Courts have relaxed some of their rules. Bankruptcy Courts are now allowing debtors to provide electronic signatures. Now is a good time to look into filing bankruptcy.
Karra L. Kingston Esq. works with clients every day who experience unexpected financial challenges. We constantly work with individuals facing stress. We are committed to staying open during COVID-19 to help individuals who are struggling financially. We will provide solutions to help you get out of debt.
For a free, remote consultation, call (973)-979-9078. Our New York and New Jersey bankruptcy lawyers are ready assist you.
