Should You File For Bankruptcy Due to Coronavirus?
COVID-19 has done a lot of damage to America. It has shut down businesses and laid off millions of people. The number of unemployed Americans could grow to 47 million. Nearly 60% of Americans have already lost money due to the coronavirus and 70% are worried about not being able to pay bills. The economy is suffering, forcing lawmakers to make tough decisions: keep people at home under quarantine longer so they stay safe, or reopen the country now and prevent further destruction to the economy?
Both scenarios have effects on the American people. Open the country too early, and you risk people getting sick and dying from the coronavirus. However, the longer you wait to reopen the country, the longer people suffer without income.
Without money, people have a hard time surviving. They can’t pay bills or even buy necessities such as food. Unfortunately, many Americans live paycheck to paycheck. They have no savings or other backup plan in place for such emergency situations. This means they won’t be able to pay their car payments or rent. They are in a state of panic. They may even be forced to file for bankruptcy.
But is bankruptcy a good idea? Bankruptcy is a major decision. It’s not a cure-all for all your financial distress. You could lose your home, car and other possessions.
If you are facing financial problems, it’s good to take action and understand your options. However, bankruptcy should be a last resort. Since the COVID-19 crisis is just a temporary setback (hopefully!), you shouldn’t commit to such a rash decision. It’s recommended that you hold off on bankruptcy for now and take these steps.
Pay the Minimum Amount
If you’re struggling with credit card debt, you should try to stay current without going into default. Consider paying just the minimum amount. While this may not be helpful in paying down your balance, it’s the best option given your circumstances.
Negotiate with Lenders
You can also negotiate with your lenders. If you pay rent, have a discussion with your landlord. Let them know about your employment situation so they can be prepared. They may be able to reduce, delay or waive your rent payment. If you have a mortgage, call your lender to discuss options. Many understand that millions are in the same predicament. Also, note that under the stimulus package passed by President Donald Trump, banks are not allowed to start foreclosure proceedings at this time.
The same goes for auto and student loan payments. Some lenders are allowing payments to be deferred for specific periods of time. Be sure to take advantage of all the options available to you during this time.
Contact a Coral Springs Bankruptcy Attorney
While you may be struggling to pay bills, bankruptcy may not be the answer. It is a major undertaking, and while many businesses are opting for bankruptcy, there are other options available to consumers.
Whether you’re having issues paying your mortgage, rent, car , student loans and other debt, the Coral Springs bankruptcy attorneys at the Law Offices of Barry S. Mittelberg, P.A. can help you during this stressful time. Discuss your financial concerns with us and we can advise you of the available options. Schedule a free consultation by calling our office today at (954) 752-1213.