Chapter 7 Bankruptcy During Covid19 Lawyer Melbourne, FL
Many Florida residents have struggled financially due to the effects of the COVID-19 pandemic. Although the federal government has passed laws that assist families financially and put protections in place, many are still struggling. If you are wondering how you will ever be able to get ahead financially, contact a Chapter 7 during covid lawyer Melbourne, FL clients recommend to see how we can help.
Reasons for Filing for Bankruptcy
Even a temporary job loss can wreak havoc on a family’s finances. There was a time when families had savings and/or access to credit which enabled them to weather temporary financial storms, but that time has passed. In addition to unemployment, some common reasons for bankruptcy filing include divorce, medical bills, and death in the family. These days, the COVID-19 pandemic has had a significant impact on the financial health of many Floridians.
All these factors have at least one thing in common: they are, for the most part, totally beyond the debtor’s control. Almost no one asks to be laid off from a job, go through a divorce from a spouse, be injured in an accident, or suffer through a long-term illness, but these things happen.
That being said, it is still your responsibility to take care of outstanding debt that you cannot pay. A Chapter 7 bankruptcy can eliminate much of your debt and give you and your family the fresh start you deserve.
Utility Shutoff Protection in Bankruptcy
Many people who are struggling financially to pay their rent, vehicle payments, medical bills, and/or credit card debt also end up getting very behind in their utility payments. Disconnect notices from the electric, water, gas, and telephone companies fill the mailbox and even payment arrangements become impossible to keep. While there are currently protections in place against some utility shutoffs, those protections will be ending soon.
Filing for bankruptcy protection is usually a last resort for people in a financial crisis, but if shutoff of utilities is an imminent threat, Filing Bankruptcy During the Coronavirus is an option. As soon as your bankruptcy is filed, utility companies are prohibited from terminating your service. This is referred to as an “automatic stay.” It’s the same legal protection that stops the bank from foreclosing or any other lawsuit or legal action because of debts you owe.
How the debt you owe the utilities will be handled depends on what type of bankruptcy you file. In Chapter 7 bankruptcies, all the debt will be discharged. However, if you had a pre-bankruptcy security deposit with a utility company, the company could legally keep the deposit and apply it towards the amount you owe them.
Contact Our Office for Help
If you are overwhelmed with financial debt and are considering bankruptcy, make sure you consult with an experienced Chapter 7 during covid lawyer Melbourne, FL. The process can be a complicated one and people shouldn’t attempt to navigate through it without qualified representation. Call Law Offices of Arcadier, Biggie & Wood today.