Lansdale, PA -- (SBWIRE) -- 05/21/2020 -- The coronavirus outbreak has caused a ripple effect throughout the economy, forcing almost 22 million Americans to file for unemployment. Still, even with government resources, some homeowners or business owners can't face the financial crisis alone. Without a job or business to fall back on, more and more people view bankruptcy as their only solution. What does a leading Philadelphia bankruptcy lawyer have to say about this?
"It doesn't make sense to jump right into bankruptcy," says Tadross. While bankruptcy is certainly something to take into consideration, there are other options one can pursue beforehand. Tadross explains that the best course of action would be to pay the minimum on each bill until work picks up and the economy bounces back.
For those who can't tough it out, there are a number of assistance programs that lenders are introducing to help borrowers stay on their feet for the time being. Some relief packages focus on mortgage and small business assistance, while others defer credit card loans, student debt, auto loans, etc. It's important to take full advantage of these programs while they are available, as they will only be around for a limited time period. However, if they do expire and borrowers still find themselves in hot water, they should ask their bank or other financial institution for longer relief programs. To apply for these programs, it may be best to hire a specialist who can find all of the necessary information, assist with filling out the paperwork, and speak with the lender on the borrower's behalf.
If none of these avenues are available for relief, choosing to file for bankruptcy may be the final, and only, option left. There are two types of bankruptcy to take into account: Chapter 7 bankruptcy and Chapter 13 bankruptcy.
Chapter 7 bankruptcy may be the best option for people who have a large amount of outstanding debt that they can not pay back in full. In this case, they would have to sell anything of value that they own, including homes, vehicles, stocks, etc., in an effort to pay back as much as possible. If the bankruptcy claim is approved by the judge, the individual will have a clean debt sheet.
Chapter 13 bankruptcy works similar to a payment plan, only this one is designated by the court where a judge decides the specifics of the payment plan. If the individual has successfully followed the plan to completion, the outstanding debt will be dropped.
Lastly, filing for bankruptcy isn't free. There are different filing fees associated with the different forms of bankruptcy. Again, it's best to hire a lawyer to take care of these legal proceedings, so everything is filed correctly.
For more information on bankruptcy relief, or to hire one of Philadelphia's best debt negotiation lawyers, contact Tadross Law today.
About Tadross Law
Tadross Law was founded with the goal of helping clients across the Greater Philadelphia area with their legal needs, whether in the form of litigation or transactional issues. This law office is well-versed when it comes to IRS tax matters, general civil litigations, and transactional matters, and takes pride in offering affordable flat rates instead of billing clients by the hour. Individuals who need assistance surviving debt and financial insecurity can find refuge with Tadross Law.
To learn more about Tadross Law, please visit http://tadrosslaw.com/ or call 215-500-5000 if in Philadelphia or 267-643-1415 if in Lansdale, PA.