How Bankruptcy Can Help If Laid Off Because Of Covid-19

Covid-19 has impacted several areas of the lives of people all over the world, and the United States is not left out. One of the fallouts of the pandemic is mass unemployment.

It is hard for anyone to admit that it is time to declare bankruptcy, but for those facing unemployment and the uncertainties that a pandemic comes with, it might start to look like a good idea. Declaring bankruptcy might be the help that is needed to help get such individuals on their feet. 

How A lay-off Can Impact The Finances During A Pandemic

Being out of a job is never fun, especially when there are bills to pay. No matter the money-saving measures that are put in place, the pile-up of unpaid bills is inevitable. Eating once a day or putting off the refrigerator at intervals is not going to do much.

It is not all grim news as the federal government and many states are working hard to inject some much-needed cash into the economy in the form of cash payments and increased unemployment benefits. Some regions have even put a hold on evictions and utility shut-offs. Stimulus packages are also a big help, but the question is if they will be enough. 

Another issue is that these plans do not waive or cancel all the debts. They still have to be paid, even if it is after the pandemic. Deferment is not a cancellation. 

How To Create A Financial Plan That Works

There are a few simple plans that can be put in place to still keep the creditors at bay. Here they are:

  •         Defer some payments and set aside some money. Either the virus clears, and then you can use the funds to settle your debts, or the virus lingers, and you use the money to eat and stay alive. Either way, it is a win.
  •         After the virus has run its course, if there are still funds remaining, creditors or landlords may be willing to allow less payment, which can be of great help.
  •         If none of the above works, and bankruptcy seems to be the only option, then the sooner that is filed, the sooner it is easier to get back in business. It also has the added benefit of wiping out most of the debts that could be accrued.

Finding The Best Bankruptcy Lawyer In Greenbelt, Maryland

The Phillips Law Offices is the best bankruptcy lawyer you can get in Maryland. They have a reputation for providing excellent legal representation for clients battling with debts.

To book a consultation with an expert bankruptcy attorney, visit their official website

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