Three Key Reasons Bankruptcy Might Be Right

Three Key Reasons Bankruptcy Might Be Right

Wednesday, 25 March 2020 10:17

This is an unprecedented time in our country's history. Our hearts go out to all who are personally impacted by the novel coronavirus and COVID-19. We have seen neighbors and coworkers rise up to become heroes on the frontlines - healthcare workers who have without question continued doing their jobs without regard for the peril they face. Others, like couriers, have found themselves not only delivering packages but lifelines to those who would risk their health significantly by shopping in public spaces. In our own community, volunteers have given their time to ensure that children and families do not go hungry even whiles schools are not in session. We are seeing just how strong our county and country are during this season.

However, not since the Great Depression has there been so many out of work so suddenly. This time of pandemic has put many workers in Wilkes and throughout the country out of work. Some jobs are furloughed with the chance of returning when we no longer have to practice social distancing. Some jobs are gone forever. Many workers do not know whether their situation is temporary or long-term. Tens of millions have applied for and received unemployment benefits; however, even with these and stimulus money, it is not enough to pay the bills.

Small business owners are scrambling to find the funds to keep their doors open and pay their staff. Large corporations are doing everything they can to keep their people on the payroll. The stress of this time is even more pronounced if you already have debt. For many Wilkes residents, bankruptcy may feel like it's looming like an unavoidable storm. At Robert Laney Law, we want to help Wilkes residents realize that bankruptcy does not have to be a boogeyman. Here are a few key reasons bankruptcy might be a good option for your family.

Three Key Reasons Bankruptcy Might Be Right for Your Family

1) Bankruptcy Can Help Slow the Debt Snowball

It may have started with a small loan or with a shopping spree. Maybe your car broke down and you paid it off with your credit card, or you were trying to help a family member out of a rough situation. Maybe you wanted to ensure your kids had a full Christmas the year you or your spouse were laid off. The interest started adding up, debtors were calling, and maybe you felt like you needed to pay off the debt on one credit card with another, then another, and next thing you knew you were swamped. Maybe a payday loan or short-term cash advance was added to the mix. Now you aren’t even sure what all you owe in the midst of a pandemic.

If you are on the verge of significant debt consequences while in the midst of uncertainty with your employment, it might be time to talk to someone about your bankruptcy options. Bankruptcy does not cancel all of what you owe, but the process can make things more manageable and help stop the debt snowball from running away from you.

2) Bankruptcy Can Help Prevent Foreclosure 

The banks may be suspending mortgage payments temporarily, but if you are already behind and deep in debt, they will likely expect the full amount as soon as things return to their new normal. If you are in danger of losing your house, Chapter 13 bankruptcy may be right for your family. Before you take this step, of course, it is important to speak to an experienced bankruptcy attorney like Robert Laney.

3) Bankruptcy Can Help Give You Some Peace of Mind

It’s scary to field calls day after day from creditors who threaten your financial future. Bankruptcy is not an easy road, but it can give you a fresh start on reducing your financial distress. If you do go through with bankruptcy, it will take some time to restore your credit; however, it can also protect you from more significant consequences than a poor credit score. 

If you are considering bankruptcy or you are deep in debt and do not know where to turn, Robert P. Laney, PLLC is here to help. Contact Robert Laney for more information about your options during this difficult time.