Why Filing for Bankruptcy Due to the Pandemic May Be a Good Option for You

The Covid-19 pandemic has forced millions of Americans out of the workforce. Jobs that were once stable and good sources of income became furloughed or eliminated because of the worldwide shutdown.

When your own employment has suffered directly because of Covid-19, you may find yourself seriously short of the cash that you need to pay your bills. Rather than defaulting and putting your bank accounts and assets at risk of being seized or levied, your best option could be to file for bankruptcy due to the pandemic. You can take this critical step to protect your family and finances by contacting a bankruptcy law firm in Brighton Beach NY, such as the Ursulova Law Offices, today.

Halting Garnishments

One of the foremost actions that creditors take against delinquent debtors like you involves garnishing their incomes. If you are still working in spite of the pandemic, you cannot afford for a quarter of your income to be garnished and taken by a creditor. You need every dollar that you earn during these uncertain times to go toward supporting your family.

When you file for bankruptcy, your creditors must immediately halt all of their collection activities against you, including releasing the garnishment against your paycheck. You can once again have your whole paycheck with which to support your household without the worry that a creditor is taking some of it from you.

Rebuilding Your Finances

When you file for bankruptcy, you tell the federal court and your creditors that you are insolvent and without the funds to pay your bills. Bankruptcy can reorganize your debt in a Chapter 13 or liquidate most or all of your debts in a Chapter 7. You can resolve challenging bills legally and reorganize your finances to live within a more reasonable budget.

You can file for bankruptcy promptly by contacting a bankruptcy law firm in Brighton Beach NY. Set up a consultation with the Ursulova Law Offices today.