COVID-19 AND BANKRUPTCY – The Co-Relation Between The Two

  • COVID-19 AND BANKRUPTCY

COVID-19 AND BANKRUPTCY – The Co-Relation Between The Two

Call: 888-297-6203

During Covid there are job cuts and the whole world is facing sudden unemployment, amidst this period if your creditor harasses you or creates pressure on you to pay up, you will have to know your rights.

Serious effects on our life because of the pandemic-

Pandemic has had serious effects on a lot of people, especially those who are losing their job or their business is closed because there are no funding or people to buy their products. These people who have debts too are contently pressurized to pay the creditors or they try to pull collection efforts. This causes a lot of mental stress for people. Your creditors don’t care whether you have a job or not they want their money and try to do anything possible to get it. If you live in or near Los Angeles & Dallas, contact Recovery law group – (888-297-6203). Our attorneys will review your situation and explain all the options available for you.

Credit pressurization- what are the laws?

The FDCPA sets the following limits on collection efforts:

  • Calls between 8 a.m – 9 p.m.
  • Calls can’t be made to you at work once you inform them that your manager precludes such calls
  • You cannot request assistance from your colleagues or other people who are associated with you in their collection efforts.
  • Correspondences can’t badger, misuse or threaten you, or use indecent or profane language
  • Collection attempts can’t exaggerate the amount owed
  • Banks or collection offices can’t use deceptive strategies, for example, professing to be law enforcement authorities or attorneys or taking steps to seize and sell your property.

Automatic Stay Offered Through Bankruptcy

An automatic stay is an order from the court to stop collecting money from that particular person. Whatever they do now will have to go through the court.

Are you thinking about filing for bankruptcy? It depends on your income, expenses, and total debt.

For most people, there are two (2) types of bankruptcy: Chapter 13 liquidation or Chapter 7 bankruptcy.

The distinction between chapter 7 and chapter 13 liquidation –

Chapter 13 is a reorganization debt, here you will have to pay all your debts in the way the court plans a repayment. It goes on for 3 – 5 years and helps you keep all your assets.

Chapter 7 is also known as “A FRESH START”. Here the case will be closed within 6 months and you won’t in most cases pay anything just some assets are given to the court as compensation.

Very few creditors violate automatic stay and if someone does contact your legal counsel right away and the court will deal with it.

Why a Bankrupt Attorney Is Essential

There are specializations in attorneys as well. If you are filing for bankruptcy, you must go to a bankruptcy attorney as he/she knows what he/she is doing. The paperwork is more than 60 pages of forms; over 100 pages of the Bankruptcy Code; the Exemptions permitted under Illinois regulation; and the subtleties of the law.

Your bankruptcy attorney will manage your case from start to end, it starts with your creditor, bankruptcy trustee, and your case that filed in the court. They specialize in this and have the knowledge that no commoner will ever have. So rest assured your attorney will try all in their will to help you and save your assets.


    2023-04-19T11:15:18+00:00