There are Benefits to Filing a Chapter 7 During this Pandemic
Video Transcribed: Bankruptcy Attorney Edward Kelley, 1-888-Debtline coming to you again in my civvies awfully casual. If you’re in the covid-19 crisis, just wanted to post a quick video elaborating on what I’ve already talked about in a couple of videos.
There’s always a silver lining to every difficulty and in this case, this may be one of the best times to file a chapter seven. Here’s another reason. If you were on the line about your income, this is a time that bankruptcy trustees and judges are of course being very kind and forgiving.
So the main calculation to determine absent other factors that you need to be in a seven or a 13 is your income. So if you’re close, you’re probably experiencing a reduction in income that may well be temporary, but given the unknown outcome of this pandemic, trustees are quite likely to be understanding and consider you genuine if you legitimately submit a lower income based on lost income projected forward.
That’s usually not something that works out easily in a seven or 13 but in these times, again, trustees who approve whether you fit into a seven or have to do a 13 are being very forgiving. So if your income is right around that cutoff 48,000 or so for one, at about 9,000 on top of that for each person in your household.
If you’re in that zone between seven and 13. Of course in the seven liquidation, debt gone and walk away, or a 13 you have to pay what you can for five years, which obviously is a monumentally more difficult undertaking.
You may, due to this crisis, be able to do a seven where you couldn’t before. So definitely contact me, contract some bankruptcy attorney. These are thankfully forgiving times and this may be the time and maybe the only time that you’re able to do a seven if you’re on that line.
So as always, contact me 1-888-Debtline, edward@wirthlawoffice, or on Facebook at Oklahomans for Debt Relief. Talk to you soon.