Bankruptcy During the Pandemic

Everyone in the U.S. is feeling the effects of the COVID-19 pandemic. There’s already plenty to be worried about, like staying home, wearing masks, and making sure our kids are learning and staying safe. On top of all of that, millions of households are having money problems from lost jobs, fewer shifts or hours at work, and much more. 

If you are one of the many people or families with growing worries about how to pay the bills, you should talk to a Michigan bankruptcy attorney about your options. They may be able to help.

Bills Can Get out of Control

Even a short time being out of work can set your family back quickly. For example, some people get by using credit cards to cover the bills for a few months, but that only adds more to your debt and makes it harder to dig out in the future. You might have had surprise bills, like fixing the car or taking a sick child to the doctor, that took all your money and left you unable to pay your rent or house payment. There are many reasons why money problems can start,  and once they do, they build up quickly.

Many households are dealing with unpaid and past-due bills, such as:

• Credit cards
• Loans from family members or friends
• Unpaid rent or house payments (mortgage)
• Unpaid electric or heating bills
• Medical bills

If you continue to not pay your bills, you might lose your housing or your car. Credit card companies might take you to court to try to force you to pay them. The credit company might even be able to take part of your paycheck in a process called wage garnishment, causing even more problems. It can be very hard to get out of debt on your own. The good news is that you have options for relief. 

How Bankruptcy Can Help

Bankruptcy is a legal process that can get rid of many of your debts. It is not surprising that more and more people are filing for bankruptcy this year because of money problems they started having last year when many people were out of work. 

Even with COVID-19 risks, you can still file a bankruptcy case with the court. There are some changes to the process that were made by the CARES Act or individual courts or attorneys. These might include:

• You can have online or video meetings with your lawyer instead of going to their office in-person
• You might be able to sign some of your paperwork electronically to keep the case moving forward
• You don’t have to have in-person meetings with officials like the bankruptcy trustee or court
• Your stimulus money won’t be counted as income for Chapter 7 bankruptcy

The bankruptcy process can be confusing, especially with all the rules in place right now for COVID-19. It’s always important that you have a bankruptcy attorney handling every step of the process for you. If you do, the chances are good that you can get rid of most of your debts and start with a clean slate. 

Talk to a Michigan Bankruptcy Lawyer Today

Money and debt problems that started during the pandemic don’t have to last forever. You should talk to a Michigan bankruptcy attorney at the law firm of Karen E. Evangelista, P.C. We’ll go over your options and explain how bankruptcy might help. Contact us today.