Is Filing Bankruptcy Necessary During the Pandemic?
The COVID-19 pandemic has hurt millions financially. Faced with unemployment and pay cuts, many have contemplated bankruptcy which is something I have advised some to avoid for now.
During these difficult times, you can obtain relief without filing bankruptcy. First, the CARES Act passed by Congress in March 2020 allows many to obtain forbearance on federally-backed mortgage loans for up to 180 days.
Call us today at (888) 298-1041 to speak with a member of my professional office staff and learn how I can bring you a renewed sense of hope and a brighter future.
Second, borrowers can suspend payments on federal student loans through September 30, 2020, without penalty. Many of my current clients have also been permitted to defer vehicle loans and credit card payments for months.
For a while, the CARES ACT imposed an eviction moratorium which protected those who were behind on rent payments, however, that moratorium was lifted on July 24th. If you call my office at this time, we may recommend that you first attempt to take advantage of other options that are available.
These relief options won’t last forever and some will eventually be forced into bankruptcy if their financial situation does not improve, however, bankruptcy should always be the last resort. Remember, filing bankruptcy costs money and you can only file Chapter 7 once every 8 years.