Bankruptcy: Your Path to Financial Freedom after the Pandemic

The COVID-19 pandemic has had a significant impact on the global economy. The pandemic has caused widespread job loss, business closures, and financial instability for many households. As a result, many people are struggling to pay their bills and make ends meet. If you’re in this situation, it may be time to consider speaking with a bankruptcy attorney.

Bankruptcy is a legal process that allows individuals and businesses to eliminate or reduce their debt. While filing for bankruptcy may seem like a drastic step, it can be an effective way to regain financial stability and start fresh. In fact, bankruptcy may be a good option for those struggling with debt following the pandemic. Here’s why:

Bankruptcy Can Stop Collection Calls and Lawsuits

If you’re behind on your bills, you may be receiving collection calls and facing lawsuits from creditors. Filing for bankruptcy can put an immediate stop to these actions. When you file for bankruptcy, an automatic stay is put in place that stops most collection efforts, including phone calls, letters, and legal actions.

Bankruptcy Can Discharge Most Debts

One of the primary benefits of bankruptcy is that it can discharge most types of debt. This includes credit card debt, medical bills, personal loans, and more. When your debt is discharged, you’re no longer legally obligated to pay it back. This can give you a fresh start and allow you to move forward without the burden of debt.

Bankruptcy Can Help You Keep Your Home and Car

Many people are afraid to file for bankruptcy because they believe they’ll lose their home or car. However, this is not always the case. Depending on the type of bankruptcy you file, you may be able to keep your assets. For example, if you file for Chapter 13 bankruptcy, you can keep your home and car as long as you continue to make your payments.

Bankruptcy Can Improve Your Credit Score

While filing for bankruptcy will initially have a negative impact on your credit score, it can actually improve your score over time. This is because bankruptcy eliminates your debt and allows you to start fresh. Once your bankruptcy is discharged, you can begin rebuilding your credit by making timely payments and managing your finances responsibly.

If you’re struggling with debt following the pandemic, filing for bankruptcy may be the solution you need to regain financial stability. The experienced bankruptcy attorneys at the Bond & Botes Law Offices have helped clients navigate their options when filing bankruptcy in Alabama and Mississippi for over 30 years. If you are faced with overwhelming debt, give us a call at 1-877-581-3396 or email us from our website for an absolutely free and confidential conversation about how we can help you obtain a fresh start.