Q: I owe a lot in credit cards. I havent been able to work due to covid. Can I file bankruptcy before I get too far behind?
I'm self employed. I do landscaping and I have credit cards in my name and my fiance has others in her name,but it to help me to use for my business We owe up to 48,000. In my name its 13,000 her name 35,000. SInce the pandemic I havent had a lot of work. I've been making our credit card payment every month .so me months were late but the past few months we had to ask them to defer payments I havent paid my mortgage since last April.,but we applied for a Forbearance. They've been giving me extensions. I'm now at the point where I'm unable to make my credit card payments. I have made card and Truck payments as best as possible every month up until last month. i do not know when I'll be able to make future payments. Can I go a head and just file for bankruptcy now before they start reporting us ? We have called them and let them know we are unable to make a payment ,but they can only help so much.Meanwhile late fees are going to keep piling up.
A: Yes. You can file. You need to discuss your entire financial situation with your bankruptcy attorney.
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A: One thing to consider at this point is whether you have any upcoming bills such as medical bills, or an eviction related bill. Prior to filing a bankruptcy case it is important to consider letting all obligations come to fruition, so that you know everyone you owe money to on the date you file the bankruptcy case. There are filing fees and often additional legal fees to add creditors you missed post filing. If the debt is incurred after you file the bankruptcy case, the Court does not have jurisdiction to discharge that claim. Timing is important when filing a bankruptcy case, which is why discussing the matter with a lawyer with experience in this area of law is important.
A: For many of the bills the lenders are agreeing to hold off if its due to covid. Note also if you are self employed you can still get PPP and EIDL loans.Check with your bank on the PPP, check with SBA for EIDL. There may be other programs--your state and federal legislators are a good source.
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