In Wisconsin, and across the nation – federal and state government actions to support and protect consumers during the COVID-19 pandemic have run their course. People in every age group are looking for financial assistance. Unemployment benefits and student loan forbearance are soon to follow. For many, credit card bills, rent and mortgage payments are now months or years behind. Sooner rather than later, payment will be expected for those past due bills. Thankfully, bankruptcy can provide much needed relief for those who qualify. But time is not on your side as COIVD hardships have presented a unique set of circumstances and challenges that make waiting to file for bankruptcy relief even more risky.
COVID-19 Household Hardships
According to the Center on Budget and Policy Priorities, COVID-19 related household hardships continue to be a struggle. Hardships includes food, rent or mortgage, car payments, student loans and medical expenses. In August 2021, the national unemployment rate was at 5.2 percent. Pew research indicates that adults aged 18-29 are less likely than those 30-64 to have returned to their previous job. People who chose unemployment and smaller incomes over going back to work succeed for a period of time. Unfortunately, credit card interest, bounced checks and other financial hardships like unpaid rent and car notes may not be so accommodating. Those that have returned to their jobs may also experience unexpected medical bills, past-due mortgage payments and other bills that they cannot handle.
Eviction and Foreclosure Prevention
As of August 2021, the eviction moratorium to protect consumers from losing their apartment due to non-payment ended. “Landlords can now file for eviction for non-payment of rent.” (“DATCP Home Landlord Tenant COVID-19 FAQs”) Debt Advisors law firm has already seen an increase in evictions. The only way to stop the eviction and foreclosure proceedings is to enforce a powerful bankruptcy specific tool called “the automatic stay.” An automatic stay immediately stops the collection of debts, as well as foreclosure or eviction proceedings. Chapter 13 installment plan halts evictions and foreclosures long enough for an attorney to negotiate a three to five-year repayment plan with creditors. But time is not on your side, especially if you’re facing eviction, foreclosure, or vehicle repossession.
Bankruptcy Provides Relief
For those that qualify, bankruptcy provides relief for debts accumulated due to COVID-19 hardships. If you file bankruptcy in Wisconsin, ask for Debt Advisors. We have been voted best bankruptcy law firm since 2012 and we have excellent reviews from clients. Waiting to file will certainly dig a deeper hole. We urge people who are candidates for bankruptcy to get the process going. This will eliminate debts, preserve assets and free up cash flow sooner. Get started quickly, and for as little as $100. Get your free bankruptcy advice by requesting a consultation with Debt Advisors today.