The Supreme Court recently lifted the federal ban on evictions allowing landlords to start the eviction process for people behind on their rent. Because federal rental assistance, provided as part of the tens of billions of the Covid relief package, has been slow to reach renters struggling to pay rent, many local agencies have stepped in to provide temporary assistance to bridge the gap as the moratorium ends. Renters who need help are encouraged to turn to various local programs for assistance.
As more people face the prospect of paying past due rent in addition to other bills that have gone unpaid during the pandemic, all while trying to make current payments for housing and other basic necessities, many are also considering other strategies to catch up such as bankruptcy to discharge old debt so that they can start anew. Chapter 7 bankruptcy often referred to as a the liquidation bankruptcy offers debtors with limited assets and income an opportunity to discharge unsecured debt such as credit cards and medical bills, leaving more money to tackle current expenses or pay past due balances. Chapter 13 can help those who have more assets that they wish to keep by establishing a repayment plan within their budget to pay down debt.
Oftentimes it is a multi-pronged approach to solve a difficult financial situation, which may include taking advantage of available Covid relief funds while working to eliminate debt through bankruptcy to get a fresh start. When you have questions regarding bankruptcy protection as a strategy to get out of debt, contact Peoria Illinois bankruptcy attorney Charles E. Covey for help today at 309-674-8125.