File Bankruptcy During COVID?

File Bankruptcy During COVID?
20 - Nov - 2020
Credit Card Debt

“Should I file bankruptcy during COVID?” We can say with confidence, that the longer creditors are on your back, the more debt increases, then the more stressful your situation becomes, and ultimately, the more difficult the problem is to resolve.  Don’t wait to file bankruptcy. The full financial impact of the current pandemic could last months or years. Start the Wisconsin bankruptcy process.

Americans Still Out of Work

As of October 2, 2021 the U.S. recorded a surprising 7.9% unemployment rate. This is much less than the 10.5%, which the Congressional Budget Office originally projected for December.  Likewise, the Bureau of Labor Statistics recently announced that 52% of American jobs lost due to the pandemic have been recovered in the past five months. Although economic recovery has been improving at a “higher than expected rate,” one must consider:

  • Disaster cleanup. Even if your job is one of the 52% recovered, there may be too much debt acquired while unemployed. Now, your debt far out-weighs income.
  • Old debt. If you had a substantial amount of debt prior to COVID-19, collection agencies and banks are becoming more aggressive & persistent. Credit scores plummet and risks increase.
  • The other 48% of Americans. If you’re in this group, you realized that help from the government can only go so far. There is a lot at stake, and an uncertainty of when things will get better.

Opportunity During COVID

Consumer trends reveal a common question, “should I file during COVID, or should I wait?” We know that financial hardships related to loss of income or medical bills can predictably rise as the pandemic continues. It’s important to get professional advice so you don’t end up in an increasingly worse situation. Simultaneously, we also know that if creditor demands aren’t satisfied, they’ll predictably go after your assets. (Stimulus checks, tax returns, home, car, etc.) Furthermore, regardless of how long the pandemic may last; those who qualify for Chapter 7 or Chapter 13 have a peak “window of opportunity.” Within this window:  Benefits are at maximum levels, more assets can be protected, future debt escalation becomes less severe, and you can take full advantage of bankruptcy protections.

Legitimate Sources For Free Advice

The quality of free advice received from a licensed professional will far outweigh Google search results, Wikipedia or other online opinions. With all the online information available it’s sometimes difficult to determine which are legitimate sources of information. As you’re researching during COVID-19, keep in mind:

    • Seek the advice of an experienced bankruptcy lawyer in Wisconsin. Their focus should be bankruptcy cases and they should have at least ten years of experience.
    • Each state has its own bar association. Make sure your attorney is on it.
    • Every attorney that is licensed to practice law in your state should have a bio page on their website that lists their experience, education, and other legal qualifications. Gather information.
  • Like Debt Advisors Law Offices, many reputable law firms today offer a free consultation with no strings attached. Take advantage of it.
  • Reviews from people who have already filed bankruptcy should either support or disqualify the law firm you’re considering. Read reviews.

Get Out Of Debt During COVID-19

If you qualify for bankruptcy, there is no benefit in waiting to file. Debt Advisors Law Offices provides virtual options for advice; convenient and safe communication channels for clients. We guarantee honest and professional feedback to guide your decision making process.

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