CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

9 Things You Should Know About How COVID-19 is Affecting Bankruptcy

Effects Of Filing Bankruptcy During COVID-19.COVID-19 Bankruptcy Information

COVID-19, the new coronavirus, is affecting every aspect of our lives. For many, the pandemic has been especially burdensome financially. People across the country want to know what the short- and long-term ramifications of the virus will be on their bank accounts. Many are concerned COVID-19 could drive people into bankruptcy or affect the current situation of those who already filed for bankruptcy.

What should you know about COVID-19 and its effect on bankruptcy?

If you are in the process of filing…

1. Those who recently filed for bankruptcy and have a case pending will likely find the progression of their case slowed because of COVID-19. 341 Meetings have been delayed because of the disruption to the courts and most meetings won’t be held over the phone or via other means.

2. Chapter 13 confirmation hearings and hearings on miscellaneous chapter 13 matters, on the other hand, are still being held as scheduled and will take place via telephone.

3. Your discharge might be postponed because of the delay in the 341 meeting. Your attorney or trustee can provide further information or you’ll be notified by the court by mail about any updates.

Despite the delays, you should remain aware of all deadlines associated with your case, including when filing fees and paperwork are due. Due dates for submitting proof of bankruptcy education and other deadlines haven’t changed. Missing them could delay your case further. You must continue to meet all of your bankruptcy obligations during the delay.

The court will notify creditors of any delays or other issues that affect them.

If you filed in the past and are mid-bankruptcy (mostly Chapter 13 filers)…

The CARES Act relief package passed by Congress resulted in a few changes to bankruptcy law that affect those who are filing or who have already filed. For example:

4. The federal government is issuing some Americans relief payments during this crisis. These payments may not have to be turned over to bankruptcy trustees.

5. Relief payments will not affect the determination of your income when you file for Chapter 7 or Chapter 13 or when calculating your Chapter 13 payments. Chapter 13 filers have the option of modifying their plans based on hardship caused by COVID-19.

6. Anyone obligated to make Chapter 13 payments should continue to do so if possible. You should also make any other payment obligations under your plan including your mortgage, again, if possible.

If you are considering filing for bankruptcy…

Many people were in the process of deciding to file for bankruptcy when the COVID-19 crisis occurred. Others are considering it now because of how the virus has affected their financial situation.

7. Filing for bankruptcy at the moment is still possible. Bankruptcy courts remain open, though all business is conducted over the phone. New cases might not move along as quickly as they would under other circumstances, but filing for bankruptcy right now can still offer relief.

8. One of the most beneficial aspects of bankruptcy – the automatic stay – still goes into effect when file. This means you’ll no longer need to deal with calls from creditors and bill collectors amid the pandemic.

9. If you are wondering if you should wait for your stimulus before filing or if relief payments will be enough to prevent bankruptcy, the answer varies on a case-by-case basis. Some people will choose to use their relief payment for the fees associated with filing, while others will delay their decision to file with the newly implemented support from the government.

To learn more about the CARES Act relief package, refer to this information from NPR.

Determining what is right for you is a personal decision and can be guided with assistance from a financial professional.

Contact a Bankruptcy Attorney

Filing for bankruptcy can be a difficult decision, but the current circumstances have forced many people to consider it an option.

If you aren’t sure what comes next or you have questions about the impact of COVID-19 on bankruptcy, we can help. Our firm is open and running and prepared to help you with unexpected financial hardships. In an effort to protect everyone’s health, we are available by phone or video on your smartphone. The bankruptcy court is open and we can protect you immediately from any creditor action. For more information, contact the bankruptcy Law Office of Robert M. Geller at 813-254-5696.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

5 Questions You Should Ask Before Filing for Bankruptcy

If you're considering filing for bankruptcy, it's important to know what you're getting into. What questions should you ask before...
Read More

Top 5 Reasons to File for Bankruptcy

What are the most common reasons to file for bankruptcy? There are many valid reasons for filing for bankruptcy. According...
Read More

5 Lessons Learned from Filing for Bankruptcy and How to Avoid the Biggest Financial Mistakes

People struggling with the biggest financial mistakes often consider filing for bankruptcy. Bankruptcy can provide relief from overwhelming debt. However,...
Read More

Things to Bring Along to Your Bankruptcy Consultation

Are you considering filing for bankruptcy? If so, one of the most important steps is to consult with an attorney...
Read More

Do You Need a Chapter 7 Bankruptcy Document Checklist? 3 Things You Need to Know

Filing for bankruptcy requires organization. A chapter 7 bankruptcy document checklist can make the process easier. No one ever plans...
Read More

Will a Bankruptcy Document Preparer Save Me Money?

While it may seem like hiring a bankruptcy document preparer will save you money in the short term, this is...
Read More

Robert Geller Shares Advice for People Considering Mortgage-Modification Programs

Robert Geller’s co-authored article “Can Debtors Afford Mortgage-Modification Programs?” was recently featured in the fall 2022 edition of the Consumer...
Read More

8 Things Clients MUST Tell Their Bankruptcy Attorneys in Tampa, Florida

If you are considering filing for bankruptcy, you must find a reputable bankruptcy attorney to help you through the process....
Read More

What Happens After I File for Bankruptcy?

Filing for bankruptcy is a process that comes with a lot of paperwork, stress, and financial strain. But what happens...
Read More

What are the Most Common Bankruptcy Questions to Ask?

Considering bankruptcy can be a difficult and emotional decision. What are the bankruptcy questions to ask? To help you make...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions