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Chapter 7 Bankruptcy: More US Citizens Than Ever May Be Filing

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As tens of millions plunge further into debt with the COVID-19 pandemic and associated lockdowns, shutdowns, and general disruption to life, many people may feel like they have nowhere to turn right now—and especially as the economy continues to remain questionable–leaving many to consider filing for bankruptcy. If you were already struggling with your finances before the threat of a dangerous virus swept the US, you may now find yourself less concerned with how to pay creditors and debt collection agencies (not to mention bothering to pick up their ongoing phone calls) and more so concerned with paying for the essentials like groceries, prescriptions, and keeping a roof over your head.

The prediction is that bankruptcy courts will become clogged, perhaps at volumes never before seen; however, if you are eligible to file for chapter 7 bankruptcy, this may still be the best financial tool at your disposal, with the assistance of an experienced bankruptcy attorney from a firm like Fitzgerald & Campbell, APLC. While there can be a considerable social stigma attached to filing for bankruptcy, keep in mind that even in good times hundreds of thousands of individuals in the US file each year.

Chapter 7 bankruptcy is especially helpful if you have a little to no income and want to see your unsecured debt discharged rapidly; in fact, your bankruptcy could be complete in as little as three to six months. Not only that, with the automatic stay, you are immediately protected from debt collectors and even process servers who may arrive at your door to serve you a collection lawsuit. This also covers foreclosures and repossession of cars.

In many cases, bankruptcy may be brought on by events other than typical money mismanagement. You may have become sick (whether with coronavirus or another ailment), you may have been in a car accident and sustained significant injuries requiring extended recuperation time, or you may have lost your job. Whatever the cause of financial distress, the key is to act quickly, avoiding any temptation to procrastinate. If you are overwhelmed with debt, this is not the time to go it alone. The reward of dealing with your financial problems—whether through filing for bankruptcy or another form of debt management—is that you will be able to look forward to a fresh start.

While filing for bankruptcy may be the best choice for some, in other cases you may want to speak with your attorney about replying to and defending a collection lawsuit or fighting a default judgment with a motion to vacate.

Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at info@debtorprotectors.com.

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