Considering Bankruptcy?
Many Americans are facing financial hardship due to the COVID-19 pandemic. In the last five months, COVID affected jobs, the economy and the stock market. Roughly 49 million unemployment claims were filed since early March. The CARES Act offered temporary relief to individuals and families through one time stimulus payments. It also provided an additional $600.00 per week in unemployment benefits. However, unless extended by Congress, the extra $600 per week in unemployment will end on July 31st. Losing part or all of your income makes it extremely difficult to pay monthly expenses. If you are struggling with mounting debts, repossession, foreclosure, or garnishments, now may be the time to consider filing for Chapter 7 bankruptcy.
Chapter 7 Bankruptcy
Otherwise known as a liquidation, a Chapter 7 bankruptcy discharges (or “wipes out”) most of your unsecured debt. Examples of debt eliminated in a Chapter 7 bankruptcy include credit card debt, unsecured loans (such as personal loans, pay day loans, and title loans), medical bills, unpaid rent from a prior lease, and a deficiency balance from a surrendered or repossessed vehicle. At the time of filing a Chapter 7 bankruptcy petition, an Automatic Stay Order is put in place, immediately stopping collection actions, including garnishments. By filing for a Chapter 7 bankruptcy, individuals financially struggling can get a fresh start.
Am I eligible to file chapter 7 Bankruptcy?
To qualify for a Chapter 7 bankruptcy, certain requirements must be met. If you’ve filed bankruptcy and received a discharge, 8 years must pass before filing again. Also, you must pass the bankruptcy means test. Your average monthly income for the last 6 months must be below the state’s median income for your family size to pass the bankruptcy means test. Payments made under the CARES Act (stimulus and unemployment) do not count toward income for purposes of qualifying for Chapter 7. If your income has been reduced or you lost your job due to COVID, you may qualify today when you did not qualify before. Depending on your income prior to reduction or unemployment, it may be necessary to delay filing bankruptcy a couple months in order to be eligible. Explore your options by consulting with a St. Charles bankruptcy attorney today.
Contact a St Charles Bankruptcy Attorney
Let a bankruptcy lawyer assist you with navigating bankruptcy during this difficult time. The Wibbenmeyer Law Firm, LLC offers free bankruptcy consultations. If you are laid off, struggling to pay debt or otherwise considering filing for Chapter 7 bankruptcy, call a bankruptcy attorney in St Charles, MO today at 636-724-3355.
