Below are some tips on dealing with debt during Covid-19, we hope they prove beneficial to you. Most of us have found ourselves dealing with debt at one point or another. A medical bill from an unexpected hospital visit that you couldn’t pay immediately. Student loans from earning your degree. Or the credit card you got at age 18 thinking you could manage it. And some of you might have found yourself in more debt than others.
But with the onset of the COVID-19, many people have now found themselves furloughed or out of work. And as a result, in more debt than before, or even more debt than ever. When it comes to dealing with debt, there are plenty of options for a fresh start. One of those options is filing for bankruptcy.
As a bankruptcy attorney, it is our job to provide you all your options. And while filing chapter 7, 11 or 13 are an option, we also have a few other tips for you to consider first.
If you feel like you’re drowning in the debt, check these tips out:
Triage Your Finances
Do you know long you expect to have less income? How much do you have in savings? Depending on these factors, there might come a point where there simply isn’t enough money to go around. What this means is that there will come a point where you will have to choose who doesn’t get paid right now.
But what gets paid and in what order of importance? This will require a strategy. Determine which creditors have the worst consequences. Figure out which ones you can put on hold.
Reach Out to Creditors
- Temporarily pause your payment
- Lower your interest rate
- Or help you explore other options to help you get by during hard times
You’ll never know if you never ask.
File for Bankruptcy with a Bankruptcy Attorney
Don’t let the word bankruptcy scare you. If you don’t know much about bankruptcy, it might sound intimidating. But that is what a bankruptcy attorney is for.
With bankruptcy, you have options – Chapter 7, 11 or 13. Which one you choose depends on your circumstances, debt, income, and other factors.
Having a Hard Time Deciding if Filing Bankruptcy is for You?
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