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Bankruptcy Chapter 7 – COVID

Chapter 7 NJ Bankruptcy

Bankruptcy Chapter 7 filings continue to be on the decline.    We would naturally assume that many are having difficulty making payments as a result of the pandemic.    Debts would be rising and the need to file bankruptcy would be urgent.   That does not appear to be the case.   Bankruptcy help is available.

COVID has not increased filings for Bankruptcy for Chapter 7.   As a matter of fact, filings have decreased over 60%.    It appears that the additional unemployment has helped to keep individuals current.   Also, government stimulus payments are meeting the needs of debtors.

The forbearance that most banks have offered is helping home owners.   However, some lenders are requiring repaying of the forbearance period payments to be paid within three to six months.   This is in addition to the regular monthly mortgage payment.   This has come as a surprise to many of my clients.

Are people just waiting until all the Stimulus Packages are Ended?

The Wall Street Journal offers their slant on the financial impact.  https://www.wsj.com/articles/covid-upended-americans-finances-just-not-in-the-ways-we-expected-11609081200

That might not be a good idea since you may qualify for Chapter 7 now.   However, you may not be able to file a Chapter 7 bankruptcy when you return to work.  Contact Me

Now that your income is lower, Chapter 7 Bankruptcy can benefit you tremendously and eliminate all of your debts.

Remember:    Stimulus $ do not count toward income eligibility.   Income eligibility is key when I would analyze the best option for filing bankruptcy.

Now is a good time to contact me:   Board Certified Bankruptcy Attorney  Contact Me

I offer a free in-person consult.   We can review your particular financial circumstances.   After our review, I will advise you whether filing a bankruptcy is right for you.

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