Experienced Rochester Bankruptcy Lawyer Answering Client Questions and Concerns

The Trustee will not seek recovery of any economic relief payments related to coronavirus. However, and most importantly, these payments may be subject to collection by your creditors if a bankruptcy is not filed.

Each Trustee has different rules on how they will assist debtors that have been financially impacted by COVID-19. You must be able to provide documentation of income loss due to COVID-19.

A bankruptcy case may allow you to include your mortgage payment in a chapter 13 case and avoid foreclosure or other collection action by the mortgage company.

All filing fees and paperwork must still be submitted on time. Missing a deadline can delay your case further, and there’s no promise the court will be lenient to those who have failed to meet deadlines.

If a Chapter 13 bankruptcy is filed, you may be able to pay the mortgage through your bankruptcy plan.

The court will take care of this for you in accordance with the law, so you don’t need to contact your creditors.

In Chapter 7 bankruptcy, the most common form of consumer bankruptcy, most, if not all, of a person’s debts are then discharged. In a Chapter 13 bankruptcy, a debtor enters into a court-approved repayment plan that lasts three to five years prior to obtaining a discharge.

There is a variety of debts that are dischargeable in bankruptcy, such as the following:

• Credit card debts;
• Medical bills;
• Utility bills;
• Business debts;
• Personal loans;
• Certain tax debts;
• Unpaid rent;
• Auto loans;
• Judgements; and
• Collections.

There are certain types of debts that are usually not dischargeable, including student loans and unpaid child support. In cases involving student loans, however, you may be able to discharge your loans if you can show that paying them back would be an undue hardship. For this reason, it is always important to have an attorney review your case in order to determine your options.

One common misconception that many people have is that filing for bankruptcy leaves a person penniless and with their credit ruined forever. The reality is that many people who file for bankruptcy are able to keep most, if not all, of their assets. In addition, people who file for bankruptcy are often in a much better position with their credit shortly after filing, as their debts are no longer active collections.

There is no law requiring individuals to have an attorney when filing for bankruptcy, but the federal courts themselves advise folks to file with a lawyer. Doing so will ensure that your filing is complete and accurate and also that you are able to take full advantage of any exemptions that you may have available to you. Folks should be aware that mistakes or omissions in a bankruptcy filing have the potential to cause significant delays and even a denial of the discharge of your debts, so it is important to take steps to ensure that you comply with all substantive and procedural requirements imposed by law.