COVID-19: Fresh Start Through Bankruptcy

The COVID-19 pandemic and resulting health care crisis has left our country in economic turmoil, with significant job losses, shuttering of businesses and many Americans struggling to pay their bills. Although local, state and national governments have offered some financial assistance, their efforts may not have been enough to stop creditors and collection calls. Fortunately, there is still hope and a chance for a fresh start through bankruptcy protection proceedings.

Most Common Bankruptcy Options

Chapter 7: Liquidation

Chapter 7 bankruptcy is a liquidation process in which a bankruptcy trustee sells off some of your property to pay off most of your debts. Generally, most debts are forgiven. Under this type of bankruptcy, the debtor is entitled to keep any assets that are considered exempt, meaning they are protected from liquidation in the bankruptcy.

Chapter 13: Reorganization

A consumer that does not qualify for Chapter 7 may still obtain debt relief under Chapter 13 bankruptcy protection. This bankruptcy option is a reorganization process in which debts are resolved for pennies on the dollar by negotiating a three to five-year monthly repayment plan. Chapter 13’s are especially useful for people behind on their mortgage.

Fresh Start Through Bankruptcy

Bankruptcy cases are filed in federal court and are governed by a complex set of laws known as the US Bankruptcy Code. Filing for bankruptcy and navigating the process can be difficult and confusing. At Hymson Goldstein Pantiliat & Lohr, PLLC, our bankruptcy attorneys have the knowledge and experience to guide you through the process.

If you, your family or friends were hurt financially by the COVID-19 crisis, Hymson Goldstein Pantiliat & Lohr, PLLC can assist in obtaining relief under the bankruptcy code to give you peace of mind and get you on your way to a fresh start. After all, at Hymson Goldstein Pantiliat & Lohr, Our Business is Your Peace of Mind®.

(In providing bankruptcy counseling and representation, Hymson Goldstein Pantiliat & Lohr acts as a debt relief agency under the Bankruptcy Code.)

Written by Attorney John Lohr, Jr., jll@hgplaw.com

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