Many are predicting that personal bankruptcy filings will increase in 2021 as debt problems accumulate in the fallout of Covid-19. Although many Americans were in a holding pattern during the early months of the pandemic aided by government programs and forgiving creditors, those who have experienced periods of unemployment during the shutdowns, or had debt problems prior, are beginning to explore what debt forgiveness options exist as the economy opens back up.
Fortunately, bankruptcy offers protection to individuals and businesses struggling with difficult debt problems. For those with limited income and assets, a Chapter 7 debt liquidation bankruptcy can eliminate unsecured debt such as credit cards or medical bills allowing a fresh start. For those with income and assets, who have nonetheless fallen behind during the pandemic, a Chapter 13 bankruptcy repayment plan allows individuals to keep various assets while paying down debt in a way they can afford. Chapter 11 business bankruptcy can help small businesses get back on track so they can thrive once more.
Many in a difficult financial situation will wait to file bankruptcy, acting when the bank moves to foreclose on their home or a creditor attempts to repossess their vehicle. However, if you are facing intensifying financial distress, are worried that a temporary layoff may become permanent, or are concerned about the day when foreclosures and evictions will eventually resume, the time to act is now. The first step is to getting the information you need – a strategy to regain your financial footing as the economy opens up.
Scheduling an appointment with an experienced bankruptcy attorney will help you to understand your rights under bankruptcy law – what debt can be eliminated, assets you can protect and how the overall process unfolds. Bankruptcy is not the right solution for every situation, but may be one of several strategies you may decide on to solve a difficult debt problem. If you have questions regarding bankruptcy in Illinois, call the Peoria bankruptcy law office of Charles E. Covey for immediate assistance today at 309-674-8125.