If your life has been upended by the COVID-19 pandemic, a bankruptcy lawyer can help you get a fresh financial start. Here are some of the ways that bankruptcy lawyers have helped their clients during the pandemic.
Keeping Roof Over Your Head
Finding yourself houseless during the COVID-19 pandemic can be a nightmarish scenario. An experienced bankruptcy lawyer can help you keep a roof over your head throughout the bankruptcy process.
Homeowner's Exemptions: Your bankruptcy lawyer can help you file for exemptions that protect the equity you've accrued in your home. Before filing for these exemptions, you need to take a number of steps to protect yourself. First, you'll need to make sure that you're up to date on your payments. If you aren't current, your bankruptcy lawyer can help you liquidate assets to help you catch back up. Your bankruptcy lawyer can also explore protections provided by the CARES Act. For instance, you might be able to ask your lender to forgive missed mortgage payments based on financial or medical hardship caused by the COVID-19 pandemic. Your bankruptcy lawyer can help you explore all of your options to help keep a roof over your head.
Renters: If you're renting, filing for bankruptcy shouldn't prevent you from keeping your home, apartment, trailer, or condo. Your bankruptcy lawyer can utilize the CARES Act to have missed rental payments forgiven or consolidated into deferred payments. They can also obtain a court-mandated stay of eviction until your bankruptcy is finalized. Working with a bankruptcy lawyer in your state can ensure that your legal team understands state and local laws informing the rights of renters. However, your bankruptcy lawyer will need to file these motions before finalizing your bankruptcy in court.
Minimizing the Financial Fallout
A bankruptcy can create financial fallout that lasts for years. Your bankruptcy lawyer can help you minimize the fallout by making a number of calculated decisions when filing.
Protecting Assets: If you've invested funds in the stock market, your stocks can be sold and divided between your creditors. To protect your stocks, your bankruptcy lawyer can help you move your assets into a trust. This trust can be put in the name of a child, spouse, or trusted friend.
Credit Score: Filing for bankruptcy can destroy your credit score. In most cases, filing for bankruptcy can show up in credit scores for up to a decade. Your bankruptcy lawyer can work with creditors to more sooner remove the bankruptcy from your credit score if you're able to meet re-payment goals.
If you've been hit hard, reach out to a bankruptcy lawyer.