Should I File for Bankruptcy During the Coronavirus Pandemic?

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The coronavirus pandemic has created a dent on the finances of many Americans. For those who were already facing worrisome debt before the coronavirus outbreak, this time may be extremely overwhelming. If you’re thinking about filing for bankruptcy to help you during this time, our Southern California bankruptcy attorneys are here to help you determine if it’s the right choice for you.

Filing Bankruptcy During COVID-19

Although the U.S. Bankruptcy Court has been making some operational changes during this health crisis, you can still file for bankruptcy. The Bankruptcy Court is still holding hearings over the phone. This means that if you file for bankruptcy during this time, you will still receive protection from creditors.
If you’re completely overwhelmed with debt and don’t know how you will make ends meet during this time, filing for bankruptcy may be a responsible way to resolve your financial difficulties.

Bankruptcy Types

There are different types of bankruptcies you can file for depending on your unique situation. For example, if you want to achieve financial freedom from debt in the most effective way possible, Chapter 7 bankruptcy may be a good option for you. It helps you eliminate unsecured debt, such as credit card debts, medical bills, personal loans, and payday advances, in as little as four months.
Chapter 13 bankruptcy is best to assist individuals who need to restructure their debt by creating a three to five-year repayment plan. This option could end up discharging some debts while obtaining more time to pay off others.

Call Our Los Angeles Bankruptcy Lawyers Today at (415) 993-3737!

Dealing with debt is never easy, especially during the coronavirus pandemic. Thankfully, the team at Wadhwani & Shanfeld is here to help you every step of the way. Determining if bankruptcy is the right option for you isn’t always easy, so we are ready to help you. We can review your case to determine which bankruptcy is best for you. We can also conduct consultations via phone, video chat, or email.
The good news is that your credit score can gradually heal if you take the right steps. Although bankruptcy will remain on your credit score, there are still different steps you can take to help you improve your credit score overall. By having your debt discharged with bankruptcy, you may be able to have a fresh start to rebuild your credit score.

Getting a Credit Card or Loan After Bankruptcy

It’s still possible for you to obtain a credit card or a loan after filing bankruptcy. However, lenders will be more cautious and will likely give you higher interest rates. It’s important to take the right steps after bankruptcy to prevent accumulating more debt with high-interest rates. Taking caution with new credit cards and loans will help you rebuild your credit score.

Call Our Southern California Bankruptcy Attorneys Today!

Bankruptcy has helped many people rebuild their lives after dealing with overwhelming debt. If you’re worried about how bankruptcy will affect your future, it’s best to consult with an experienced bankruptcy attorney to understand how bankruptcy may affect you.
The Southern California bankruptcy attorneys at Wadhwani & Shanfeld have over 65 years of experience helping people obtain financial freedom. Our team can review your case and determine if bankruptcy is the best option for you. If we determine that it is, we can discover if Chapter 7 or Chapter 13 is best suited for your unique situation. Our team is ready to help you overcome the stress of paying off debt and creditor harassment.

Get in touch with our Los Angeles bankruptcy lawyers today at (415) 993-3737 to schedule a video chat or phone consultation!