The novel coronavirus, also known as COVID-19, pandemic has had significant impact on all of us – especially those who have been laid off due to the business closures. The virus is creating substantial financial uncertainty. Businesses and individuals are being faced with unique challenges during these difficult times. Although there may be much uncertainty in knowing the full impact of the pandemic, there is no doubt that it will affect all of us in one way or another.
Despite the uncertain future, there are some options you may have if you lost your job as a result of the coronavirus outbreak and are facing a situation where your debt is spiraling out of control. Below are three options you should consider. An experienced Central Valley bankruptcy attorney can help you make the decision that best fits your specific financial situation.
- Pay the minimum
One option you may have after getting laid off during these hard times is to pay the minimum on all of your bills. This will allow you to stay current on your bills. Try to tough it out as long as you can. Hopefully the economy will bounce back and your work will pick up, allowing to make full or higher payments.
- Negotiate a settlement
Another option you may have in dealing with the piling up debt is to negotiate some sort of settlement with your lenders and creditors. This option may not be available to everyone. But it is worth taking a stab at it.
- File for bankruptcy
Filing bankruptcy may be the best option if you have been struggling for a while with your debt and your income has been significantly lower or zero than it was before. Filing for bankruptcy is not the end of the world, despite what most people think. In most cases, it may even be good for you. It will erase debt and even help your credit scores.
Call an Experienced Central Valley Bankruptcy Attorney
If you have been impacted by the COVID-19 pandemic and 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.