Many Georgia residents may have to navigate Bankruptcy through COVID-19. Georgians have been thrust into a financial crisis as a result. Filing bankruptcy could be the financial lifeline you are looking for to get you back on track? For many months now our country and others have suffered because of the pandemic. As the government works on a solution to keep people safe, strict social distancing measures are in place in many states. While this is a necessary measure to keep us safe, it has been a financial burden to many people who have lost their jobs. Many restaurants have moved to takeout only while others run the gambit and open. Many people have found themselves either furloughed or without a job. You know most people were not prepared for this disaster.
The crisis has moved fast and many people have now found themselves struggling to make ends meet. We know how stressful this is and we can help you pinpoint the best options for you and your family. Our bankruptcy attorneys are here to talk to you about options to help you push forward.
A Financial Plan for People Affected by COVID-19
We know that nobody wants to file bankruptcy. It isn’t something you go into your adult life ever expecting to have to experience. If you are one of the millions who lost their job due to the COVID-19 bankruptcy might make sense. That is if you’re struggling with debt and have no source of income.
A bankruptcy plan could give you a sense of control during this unprecedented time.
Before filing for bankruptcy, try to make arrangements with your creditors. Some creditors might waive payments for a certain period of time. Others may allow you to make delayed arrangements to pay your debts. We’ve learned student loan payments are on hold, #thankful. Most utility bill companies cannot shut services off due to no payment due to the pandemic.
Plan your financial strategy based on your conversations with creditors. If there is wiggle room to pay your debts, pay them as you are able.
If you still find yourself needing an alternative solution, let’s explore bankruptcy. The sooner you file, the sooner you can get back on your feet and start rebuilding your credit.
Why Bankruptcy?
The benefit of bankruptcy is having your debt discharged. (chapter 7) Things like credit card balances and medical bills can fall into this filing. These are the type of debts that are most likely to get out of hand during a crisis.
This can give you more disposable income to maintain some kind of quality of life. During this time you can divide extra money to areas where you need it. Chapter 13 will buy you time if you have a job and creditors are garnishing your wages for debts you owe.
Right now things are uncertain and we understand you are feeling an added level of stress. Our law firm will find the best option to help you and your family through COVID-19. We’ll be here with you every step of the way through a bankruptcy case.
Give us a call today to get the discussion started. To begin the journey of recovering we offer a complimentary consultation. Let us help you find some peace during these chaotic times. (Click here to begin.)
Bankruptcy FAQ
How much does a bankruptcy lawyer cost in Ga?
There are usually 2 costs involved with a bankruptcy case – the lawyer’s fee and the court filing fee. For the court filing fee, the amount depends on what chapter of bankruptcy the person files. Although the court changes these fees from time to time, right now the filing fees are: $335 for a chapter 7; $310 for a chapter 13; $1,717 for a chapter 11. The amount of the lawyer’s fee depends on several things: whether the case is for an individual, a couple or a business, the chapter that is being filed, and the complexity of the case. Fees can range from $499 and up. Most lawyers provide workable payment plans to make the fees easier to pay.
Do you need an attorney to declare bankruptcy?
The law does not require that you have an attorney to file a bankruptcy case (unless a company or LLC is filing bankruptcy). You can file a bankruptcy case on your own, which is called “pro se.” If you choose to file bankruptcy without an attorney, proceed with caution. Filing a bankruptcy case gives the court, the trustee, and even the creditors in a case certain rights that they do not have outside of bankruptcy. Bankruptcy law holds a lot of potential traps for those who file without knowledge of the law. If you have property you want to keep or special debts you want to get rid of so that those debts don’t cause problems in the future, it is usually wise to make the investment in hiring a good bankruptcy lawyer.
How much should you be in debt before filing bankruptcy?
There is no minimum amount of debt you must have in order to file bankruptcy. Sometimes, people with relatively small debt (even less than $5,000) can benefit from a bankruptcy, especially if their wages or bank accounts are being garnished. A wage garnishment would take 25% or more of your after tax income, and many people cannot afford to live on less than 75% of their income. In that case, stopping the garnishment is just as important as getting rid of the debt. Each situation is different. In each situation, bankruptcy should be weighed against all options to determine which provides the most benefit.
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