As per the guidelines by the Centers for Disease Control and Prevention (CDC), the Bankruptcy Court is following them and updating their process. However, the normal process got disrupted, and there are delays in the processing of bankruptcy filings.
If you lost your job or income source due to COVID-19 or unable to pay your debts, you should know a few things about bankruptcy. Additionally, you need to understand how the processes are affected due to the pandemic.
Important Things About Bankruptcy and COVID-19
According to bankruptcy lawyer Birmingham Alabama, the filing of bankruptcy process has been delayed due to the COVID-19 pandemic. Here are five important things you need to know about bankruptcy and the pandemic.
Effect of COVID-19 and Bankruptcy
People who filed for bankruptcy during the pandemic may not have approved because of the delayed processing. It was not possible to hold the 341 meetings due to the disruption caused due to COVID-19.
The discharge of many bankruptcy cases has been delayed because of the delayed processing of 341 meetings. So, you should consult your bankruptcy attorney for more information about your filing or updates.
What You Can Expect If You Need to Go to Court
You shouldn’t go to the court until it’s extremely necessary or you get any further notice. Visit the official website whether the court is open for the public and it’s allowing visitors. Since the number of confirmed cases is rising, some courts are screening visitors before they enter the court.
They may ask you some questions if you have been affected or exposed to someone who is affected by COVID-19. If they find you have any symptoms of COVID-19 or are exposed to any coronavirus patient, they may not allow you to enter the court. However, you need to prevent yourself from the dangerous coronavirus before thinking about your financial situation.
Filing Bankruptcy Can Cost You
Do you know that filing bankruptcy isn’t free? Although people who are unable to pay their debts are opting for bankruptcy declaration, the process of filing costs you money. You have to pay the filing fee for declaring bankruptcy.
The filing fee can range from $300 to $350 for chapter 7 and chapter 13 bankruptcy cases. However, you can pay the filing fees in installments. If you can show that it will be a financial hardship for you to pay the fees at once, most courts will allow you to pay in installments.
What if You Filed Bankruptcy in the Past
Have you filed a bankruptcy in the past? So, what to do if you have again struggling with your finances due to the COVID-19. Well, if you filed a chapter 13 bankruptcy case, you have good news.
- The federal government issued some relief in payments for some past bankruptcy filers.
- If you filed for chapter 13 bankruptcy, you have the option to change your repayment plan based on your situation due to the coronavirus pandemic.
Consult a bankruptcy lawyer at your locality to better understand your financial obligations and how you can plan them accordingly.
Bankruptcy is Not the End of Your Financial Future
When you are not able to pay your debts or negotiate with your creditors, it might be the time for filing bankruptcy. Don’t beat yourself hard; it’s time to support yourself and take control of your life.
Many people don’t file it because it seems like they are failures. However, that’s not the case; it can ease your situation by relaxing your situation. Remember, bankruptcy is not the end of your financial career. Although it may impact your financial future, things will become better.
Final Words
Now that you know about some crucial points about bankruptcy and COVID-19 understand your financial situation before making any decision. If you need any professional advice, consider hiring a bankruptcy lawyer who can guide you in your journey.
