How COVID-19 impacts chapter

If bankruptcy is your best option, try not to burden yourself more than necessary. You are not alone in this situation and can climb out again over time.

There is hardly an aspect of our lives that has not been affected by the coronavirus pandemic. With vaccination rolling out and the threat from the tribes still great, many families, entrepreneurs, and small businesses, as well as some large corporations, are asking the same question: how will the pandemic affect bankruptcy?

Let’s look at some common questions and try to answer them. However, we will keep in mind that the situation can change practically on a daily basis and that we can never really predict what the future will bring.

We know that at the moment.

What if I have already filed for bankruptcy?

If you’ve already filed, the case is likely to be slowed down. However, 341 meetings are held by telephone and video conference. So you can just join one from home instead of leaving your home. Be patient and understand that the legal system is stalled and that delays are only to be expected.

Chapter 13 Confirmation hearings also take place over the phone so you don’t have to worry about that either.

The court will notify you of any updates via email and you can always contact your attorney.

The only thing to keep in mind is the deadlines, i.e. when registration fees and paperwork are due. You haven’t changed despite the situation. If you miss them, it could add further delay to your case.

What if I’m in the middle of bankruptcy?

Congress passed the CARES bill of assistance that affects those who are filing or have already filed for bankruptcy.

This is because the federal government issues bailout payments, and those payments may not need to be passed on to your liquidator.

These relief payments do not affect the determination of your income when you apply for a Chapter 13 or Chapter 7, or when you calculate your Chapter 13 payments.

Submitting a Chapter 13 allows you to change your plans based on the damage caused by the coronavirus pandemic.

If you need to make Chapter 13 payments, you should continue doing so whenever possible. Also, if you can, try to re-make all other payments – your mortgage, for example – only when you can.

What if I want to file for bankruptcy?

If you are looking to file for bankruptcy, especially if your distress was caused by the pandemic, you should consult a reliable bankruptcy attorney who can advise you on the best course of action.

Remember that President Biden may be working towards new relief plans being adopted and that the situation will continue to develop. It is all the more important to have reliable advice by your side.

Joe Biden; Image by Gage Skidmore, via Flickr, CC BY-SA 2.0, no changes.

Despite the situation, you can still file for bankruptcy as the courts continue to operate over the phone. You might have to wait a bit, but your submission may provide the relief you’re looking for.

Auto-stay continues to take effect when you file an application so you don’t have to face your creditors and bill collectors in the middle of the pandemic.

Of course, you can wait and see what kind of relief you receive or can avail of. However, this is a decision that you should make in consultation with your bankruptcy attorney as they can best advise you. The decision really depends on your particular case and circumstances, and no one can give you general advice on this matter.

Final thoughts

A year after the pandemic began, we can now safely say that the economy will not recover quickly and that the financial implications of this will certainly have far-reaching implications.

However, try to focus on your own financial affairs instead of focusing on the bigger picture and the very poor results and difficulties that are waiting for us. Focus on figuring out the best course of action for you and your family.

Reach out to an attorney who specializes in bankruptcy because they’ll be more knowledgeable about the news than you and able to provide sound advice.

If bankruptcy is your best option, try not to burden yourself more than necessary. You are not alone in this situation and can climb out again over time.

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