The COVID-19 pandemic has hurt millions financially. Faced with unemployment and pay cuts, many have contemplated bankruptcy which is something I have advised them 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 a forbearance on federally-backed mortgage loans for up to 180 days. 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 loan and credit card payments for months.
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.
If you have questions about your non-bankruptcy options during this difficult time, feel free to call my staff at 888-782-9423.