As the coronavirus (COVID-19) pandemic continues to challenge individuals and businesses nationwide, many people are turning to Chapter 7 of the Bankruptcy Code for relief. A Chapter 7 Bankruptcy may be available to consumers, pursuant to which all unsecured debt can be eliminated. However, the individual filing for bankruptcy must first meet certain “means test” requirements before the debts can be discharged.
Although each individual’s case and reason for filing is case-specific, the
bottom line is that if you find yourself unable to pay medical bills or have used unsecured debt to bridge the gap between lost wages and necessary costs of living (especially during the COVID-19 crisis), a Chapter 7 Bankruptcy may be a viable option. Below are some important steps you should follow if you are considering filing Chapter 7 Bankruptcy.
- Consult with a Bankruptcy Attorney
If you are one of millions of Americans who have been financially impacted by the COVID-19 crisis, you should immediately consult with an experienced Central Valley bankruptcy attorney to determine whether filing for Chapter 7 Bankruptcy would be the best the option for you. Most attorneys are meeting remotely with clients via Zoom or other similar platforms.
- Collect Financial Data
In preparing to meet with your attorney, you should gather all financial information. The most important documents that should take with you as part of this financial data are your income and personal assets. If you decide to hire the attorney and continue with the bankruptcy filing, such information will be crucial in filing your petition and moving your case forward.
- Attend the “Meeting of Creditors”
It is always a wise decision to attend your “Meeting of Creditors” with your Central Valley bankruptcy attorney on the date and time set by the Court. During the COVID-19 pandemic, these meetings are being held telephonically. Your attorney can provide you with more information once your case has been filed. At the meeting, you and your lawyer must answer questions from the trustee and creditors about your bankruptcy forms and finances.
- Update Your Bankruptcy Attorney
It is crucial that you keep your attorney updated with any new information that can impact your bankruptcy filing.
Call an Experienced Central Valley Bankruptcy Attorney
If you are planning to file or in the midst of a bankruptcy proceeding, it is in your best interest to consult with an experienced bankruptcy attorney to help you learn your legal rights and options, especially with respect to Chapter 7 bankruptcy.