No one wants to file bankruptcy. But if you find yourself amongst the millions of people impacted by the outbreak of the novel coronavirus, bankruptcy might just make sense – especially if you were laid off and struggling with debt. Below is some helpful information about how a “last resort” bankruptcy can help give you a sense of control during this unpredictable time. It can also help you get back on your feet financially.
Dealing with Financial Instability After Getting Laid Off
Losing your job could mean various things to different people – but to most, it means less or no money at all to pay the bills. Regardless of how much effort you put into cutting down on groceries or turning off the lights, these measures rarely stop the bills from piling up. In normal times, getting laid off from one job generally means looking for another job. But, during the novel coronavirus pandemic that option may not be possible because of the government shutdown of businesses means less or no jobs available.
Fortunately, government officials, along with many creditors, are working hard to provide safety nets during the coronavirus (COVID-19) crisis. For many individuals who have been laid off, unemployment benefits and stimulus checks might do the trick – especially when combined with the mandated holds placed on evictions and utility shut-offs.
However, these measures will not keep everyone afloat if the crisis lasts longer than expected. As such, it is important to have a plan that takes into consideration a best-case scenario while providing for the worst.
Using Chapter 7 Bankruptcy as a Plan of Last Resort
In some situations, such as the COVID-19 pandemic, filing bankruptcy is inevitable. If you are unable to find a financial pathway through this crisis after your layoff, bankruptcy might be your best course of action. The sooner you file for bankruptcy, the sooner you will be able to start rebuilding and get back on your feet.
For most individuals, Chapter 7 Bankruptcy is the best option after being laid off. This type of bankruptcy is quick (generally take four months to complete), you won’t have to pay creditors anything, and you will be able to keep the property you need to work and live.
To determine whether this is the best option for your specific situation, it is best to immediately consult with an experienced Central Valley bankruptcy attorney if you have been impacted in any way by the financial crisis of the coronavirus outbreak.
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.