Coronavirus Bankruptcy Options
Coronavirus Bankruptcy Options
The COVID-19 outbreak has brought with it unprecedented economic and employment strains. With very few viable long-term options for dealing with bills that cannot be paid, many Americans are considering their options for bankruptcy at no fault of their own. In fact, many North Carolina bankruptcy attorneys are predicting a tsunami of bankruptcy filings directly related to the coronavirus pandemic. If you are struggling to pay your debts as a result of the coronavirus spread or anticipate that you will be soon, do not delay in researching and pursuing your options for bankruptcy.
Filing Chapter 7 Bankruptcy Due to COVID-19
Chapter 7 bankruptcy will be the ideal option for many accruing debts due to the coronavirus. Depending on your financial eligibility and your assets, a Chapter 7 bankruptcy could erase your obligation for paying many types of debts including:
- Medical bills
- Credit card balances
- Mortgage or rent arrears
- Utility bills
- Vehicle loans
- Unsecured personal loans
Keep in mind that while a Chapter 7 bankruptcy will eliminate your personal debt obligations, it does not secure your home, vehicle, or other property. If you want to keep secured property, talk to your North Carolina bankruptcy lawyer about your options for doing so when filing for Chapter 7.
Chapter 13 Bankruptcy and Coronavirus
Some individuals who are experiencing the negative financial impacts of COVID-19 will find Chapter 13 bankruptcy to be a better option. In contrast, Chapter 13 bankruptcy can allow debtors to keep their secured property in some circumstances. It is a reorganization of debts for those who make too much to file for Chapter 7 bankruptcy, have substantial assets, or who want to keep unsecured property. In this type of bankruptcy, you make monthly payments to a trustee over a three- or five-year period. The trustee then pays your creditors what they are owed under bankruptcy laws out of your payments.
If you do not anticipate having a steady income that can pay for your bills and a Chapter 13 payment plan at the same time, filing Chapter 7 might be a better option. Meeting with a North Carolina bankruptcy attorney can help you decide which type of bankruptcy will be the most beneficial for your financial circumstances.
Should You Wait to Pursue Bankruptcy Options Until the Pandemic Subsides?
You may be holding out on learning more about bankruptcy or talking with a North Carolina bankruptcy lawyer because you want to see if job opportunities increase and your financial situation improves. You might be holding out assuming that bankruptcy courts are either closed or overburdened. You could even be waiting because you do not want to go out and put yourself at risk for contracting COVID-19. These reasons may seem logical, but in reality, they are not practical.
Waiting too long to act while you are not managing your debts can make your situation worse and decrease your options. You don’t know what will happen with your financial situation, but you do know it is less than ideal right now. Bankruptcy courts are opening back up or finding alternative ways of proceeding with bankruptcy filings. Bankruptcy attorneys can meet with you via video or phone.
Review Your Coronavirus Bankruptcy Options with a North Carolina Bankruptcy Attorney Today
Times of financial crisis are extremely difficult and concerning. You may feel like you have no control over your circumstances, especially when the coronavirus outbreak caused them. You can take back some of your control by learning about your options for bankruptcy and what you can do to improve your finances. The first step is to schedule a free no-obligation meeting with an attorney at King Law Firm by calling (800) 635-1683 or use our convenient online contact form.