Covid-19 Pandemic, Quarantine & Bankruptcy

Greenbelt, MD Bankruptcy Attorney

The Covid-19 Pandemic and related quarantine have had a devastating effect on our local and national economy. The amount of people who are unable to pay their rent or home mortgage payments is likely to reach and even surpass the levels we were seeing in the economic recession of 2008 and 2009.

These extraordinary times and the financial difficulties that they bring are exactly why the protections afforded by the U.S. Bankruptcy Code are available -- To help Americans who are struggling financially and need help.

The Covid-19 Economy & Home Foreclosures

As the courts re-open and businesses begin to work towards protecting their financial interests, we will see home foreclosures and tenant evictions rise in Maryland and throughout the U.S.. By filing for bankruptcy, you can stop foreclosure and often take the outstanding payments on your mortgage and reorganize them allowing you to keep your home and get caught up. Learn more about how bankruptcy can stop a foreclosure here.

How Bankruptcy Helps People with Medical Debt

If you or a loved one was hospitalized for having Covid-19, you are very likely dealing with not only a lowered or limited income but also medical bills that can be extremely overwhelming. If you qualify for Chapter 7 Bankruptcy based on your income level, we will likely be able to eliminate your medical debt completely. If you file for Chapter 13 Bankruptcy, we are able to put your medical debt into the re-payment plan which will stop creditor calls and give you manageable monthly payment for your medical debt and any other outstanding consumer debt like credit cards. Learn how different types of debt are treated in a bankruptcy here.

Credit Card Debt from the Covid-19 Economic Collapse

When people are unable to work and do not have an income, it's normal to rely on consumer credit cards to handle daily expenses like a utility bill or groceries. In some extreme cases people are forced to put their rent or a mortgage payment on a credit card. This will lead to a maxed out card and struggling to make minimum payments. If your credit card debt is causing problems for your financial situation bankruptcy is likely a very good option to help you manage them.

Call (301) 513-0500 or Email Today.