Do I Need to File Bankruptcy due to COVID-19?

If you’re worried about debts piling up, and questioning whether you may need to file bankruptcy, you are not alone.  The Coronavirus pandemic has dramatically impacted the lives of many Arizona residents.  Here are some signs that the current economic downturn is pushing you towards bankruptcy:

1. Your credit cards are maxed out at their current limits and you’re struggling to make the minimum monthly payments.
2. Soon after making a payment on your credit card, you find that you need to use the card again to purchase groceries.
3. Instead of filling up your gas tank, you’re putting in $5 or $10 worth of fuel at a time.
4. You applied for credit cards with zero interest balance transfer promotions and didn’t qualify.
5. You have a COVID-19 mortgage forbearance and don’t know how you’re ever going to get caught up on mortgage payments while also paying other bills.
6. You rent and are worried about eviction after the CARES Act relief period expires.
7. You’ve fallen behind on credit card payments and collectors are calling day in and day out.
8. Your debt has you feeling overwhelmed and stressed out.

If you know that you need to do something about your debt, but are on the fence about contacting an Arizona bankruptcy attorney, there’s no reason to delay.  Here are some of the things a bankruptcy lawyer can do to help you:

1. Meet with you free of charge to talk and listen to your struggles.
2. Explain your options for resolving debt and develop a course of action.
3. Help you see solutions more clearly.
4. Take calls from your creditors so that you can get some peace.
5. Smoothly guide you through the bankruptcy process.
6. Explain complicated bankruptcy laws.
7. Relieve your stress.

Timing matters when it comes to filing bankruptcy.  Qualifying for a Chapter 7 discharge depends on your income during the six to seven month period prior to filing bankruptcy.  If you have suffered a job loss, there may be a window of opportunity to file Chapter 7.  Evaluating bankruptcy early on allows you to plan for exempting, or protecting, your property and assets.

Don’t hesitate to reach out to us when you’re ready to talk.  Taking that first step towards solving your debt problems may just make these challenging times feel a little easier.