As we go through the pandemic and economic shutdown it is a common experience to worry about an uncertain future. While we all want to remain solvent and pay our bills, for many during this crisis that is not a reality. Thanks to the foresight of the forefathers of our country, there is a way to “get back to normal.” The Constitution itself gives Congress the power to make uniform bankruptcy laws. Read the information below and call me, Steven Schneider, Attorney at Law, for a free consultation: (509) 838-4458. Bankruptcy Spokane Attorney Lawyer. Covid-19 and Bankruptcy.
COVID-19 CRISIS AND BANKRUPTCY
Bankruptcy may not have been a consideration of yours prior to COVID-19, but now may be the only workable option. If you were already on a shaky foundation, you may now be pushed “over the edge.” Most people think of bankruptcy as a last resort…and it is.
However, if you need to file bankruptcy to keep you and your family safe, do not feel badly. Consider yourself responsible and realistic. The sooner you can get back on your feet, the sooner you are a productive and happy contributor to our society once again. That is the wisdom of our forefathers in providing for bankruptcy relief. This is how our capitalist economy provides a safety net for ‘the honest debtor’, incentive for risk taking entrepreneurs and predictability for lenders and insurers.
Chapter 7 Bankruptcy
You do not have sufficient income to pay your daily household bills. Credit card debt, medical bills and other unsecured debts are written off so that you can concentrate on how to distribute the money you do have to take care of yourself and your family.
Chapter 13 Bankruptcy
You have a job and some extra money left over after you pay your monthly household bills. The bankruptcy trustee will instruct your employer to pay some of your wages to the bankruptcy court. The trustee will then distribute this money to pay your monthly mortgage and car payment (if you have them) and a portion to your creditors (student loans, credit card, medical, or other types of debt). At the end of the three or five-year term, your credit card, medical and other types of debt will be forgiven.
If you are behind in your mortgage and car loan, you can make up the missed payments and save your home and your car. Contrary to common belief, student loans and even tax debt can be reduced or eliminated in some restricted cases.
If you have a revoked driver’s license it can be regained whether it was suspended for DUI’s or non-payment of fines.
Bankruptcy Spokane Attorney Lawyer
Helpful Resources: https://www.snapwa.org/snap-changes-amid-covid-19/ ; https://esd.wa.gov/unemployment : https://my.spokanecity.org/economicdevelopment/small-business-resources/
COMING TOPICS: COVID-19 AND BUSINESS BANKRUPTCY,
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