Search Site
Menu

Financial Strategies During the COVID Economic Crisis

As a result of stay-at-home orders, job losses and business closures, the coronavirus pandemic has caused many families to suffer significant economic hardship. While filing for bankruptcy may be an option, there are also a number of financial strategies you should consider that can help you tackle your debt and protect your finances during these unprecedented times.

If your debt has become unmanageable during the COVID-19 pandemic, you might consider credit counseling. Certain credit unions and nonprofits offer credit counseling services and workshops that can provide you with valuable resources and tools that you may be able to use to overcome your financial burden. Importantly, if you’re considering credit counseling, you should ensure that the services you use are accredited by the National Foundation for Credit Counseling or the Financial Counseling Association of America.

Filing for Chapter 7 bankruptcy offers you debt relief once you’ve exhausted all other options. However, it’s important to weigh the pros and cons. While bankruptcy can put a stop to debt collection and other creditors’ actions, it can also require the selling off of some of your property. It can also have a negative impact on your credit score, which can have a range of consequences to your ability to purchase a home, a vehicle or other commodities. In some cases, bad credit can also prevent you from securing a certain job.

You should also consider the type of debt you incurred prior to filing a petition for bankruptcy. There are certain debts that bankruptcy cannot erase, including child support, alimony, taxes, student loans and property liens. Depending on your specific circumstances, you may need to develop a strategy that will address those nondischargeable debts.

If you are earning consistent income but could benefit from reorganizing your debt, filing for Chapter 13 bankruptcy may be a better option. It allows you to enter into a repayment plan with your creditors by which you would make installment payments over the course of three to five years. Unlike a Chapter 7 proceeding, which liquidates part of your assets, Chapter 13 allows you to retain your property that is not subject to liens or mortgages.

Significantly, as soon as you file for bankruptcy, an automatic stay goes into place, stopping creditors from attempting to collect debts or to bring lawsuits against you while the bankruptcy case is ongoing.

With offices conveniently located in Athens, Douglasville, Gainesville, Lawrenceville, Marietta, and Scottdale, Jeff Field & Associates helps clients in the Atlanta metropolitan area with bankruptcy matters and helps them find positive solutions for their financial issues. To schedule a consultation, call 404-381-1278 or contact us online.

More on this topic:

How the COVID-19 Pandemic Affects Your Pending Bankruptcy Proceeding

Could the COVID-19 Pandemic Lead to the End of Medical Bankruptcy?

How Chapter 7 Can Provide a Fresh Start During the Pandemic

Bankruptcy Can Provide Immediate Help for Struggling Debtors During the COVID-19 Crisis

Leave a Reply

Your email address will not be published. Required fields are marked *

Videos
Our Attorneys
Client Reviews
  • lawyers
    5.0/5.0

    We worked with quite a few people in this office over the last 3 years. I can't tell you how many times I emailed or called or how many times they did the same and each time was a pleasure. These guys are so great to work with. They have a lot of com...

    Read more

    Client

  • google
    5.0/5.0

    Due to medical expenses and serious physical problems I had to file bankruptcy. I was nervous and really depressed about the whole situation. I called Jeff Field & Associates and felt at peace after talking to a lawyer. I decided to go with them and ...

    Read more

    Sherri Ellis

  • google
    5.0/5.0

    Outstanding work!! They were great from day 1!!! Thank you

    Read more

    L B

  • google
    5.0/5.0

    They Get the Job Done Trust me Right Away Fast Luv them

    Read more

    Gary Phifer

  • lawyers
    5.0/5.0

    Mr. Fields was very professional and understanding….he talked to me with respect and cared and understood my feelings….I would highly and strongly recommend him

    Read more

    Client

See all reviews
Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form