Nearly 50 percent of millennials were still recovering from the Great Recession when the Covid 19 economic fallout took hold. Double digit unemployment and stagnate wages that began in the 2006 downturn left many millennials unable to pay off bills or tuck away retirement funds; Covid-19 has only exacerbated the problem.
Now, many Americans are in real financial trouble, unable to pay their rent or mortgage, credit card bills or keep up with car payments. Although creditors have provided some wiggle room and some relief has come from the government, many see a time in the near future when accommodations surrounding the pandemic dry up.
In the wake of the economic shutdown and resulting unemployment, Americans are in a difficult – if not untenable financial situation and have a right to file for bankruptcy protection in order to get a fresh start. Those who have unsecured debt such as credit card or medical bills may benefit from a chapter 7 debt liquidation.
What is the bankruptcy means test?
A bankruptcy means test will take into account income, expenses and family size to determine if you have enough disposable income to pay your debts. For the many Americans who come up short, a chapter 7 bankruptcy can erase all unsecured debt, allowing individuals and families to get a fresh start.
For those who do not qualify for a chapter 7, or who have assets they wish to keep that are not exempt from bankruptcy, a chapter 13 repayment plan can keep creditors at bay while debt is being paid over a 3 to 5 year period, with the remainder discharged at the end of the repayment plan.
If you are a millennial and are considering bankruptcy as a strategy for financial recovery, the first step is getting all the information you need to determine if bankruptcy is a good strategy for your unique circumstances. Contact Attorney Charles E. Covey for more information at 309-674-8125.
