The pandemic is really impacting our daily lives, from social distancing to unemployment, and our finances are changing along with it. Because of all this uncertainty, you may be considering filing for bankruptcy.
Should I file for bankruptcy?
While everyone’s circumstances are different, most people should not file bankruptcy until they have really reached the bottom of their financial situation. That way your financial problems are all behind you and the bankruptcy can properly address your needed issues.
There are many things to consider beforehand such as whether your financial situation will get any better or whether you need to immediately file.
Basically, if you have too much debt and cannot pay it back, then you should seek bankruptcy advice.
What if I must wait to file?
If you have a lot of debt, and decide you want to file for bankruptcy, you need to know what to do with the debt right now. First, you want to keep paying on secured debts (like a car loan or a home mortgage). You probably need a car to get to and from work, and you do not want to get behind on your mortgage if you can help it.
After that, you can let your unsecured debt, such as credit cards, go. Most likely, that will all be taken care of in your bankruptcy, and in any event, this debt is not as important as your secured debt.
Now, everyone’s situation is different, and these are just general rules to go by. If you are considering bankruptcy, you really need to speak with a qualified bankruptcy attorney and you can explain your specific situation to him or her. Many bankruptcy attorneys offer free initial consultations, where you can discuss all of this.
Although the pandemic is financially impacting individuals and businesses, people should not panic and file for bankruptcy without first analyzing their financial situation. You do not want to hurry into it and in many instances, it really helps to wait. That is why you really should consult an experienced, qualified local bankruptcy lawyer.
If you have questions about this topic or other bankruptcy matters, please contact Attorney Richard G. Allen.