Should You Consider Bankruptcy if You Fell Behind on Mortgage Payments Due to the Pandemic?

There is no shortage of personal financial crises to go along with the health crisis which is currently sweeping across the globe. The coronavirus pandemic has cost the jobs and incomes of millions of people all across the country.

For those here in Georgia who have been hit the hardest by the furloughs and shutdowns, contemplating the possibility of bankruptcy to address their mounting financial concerns is something that should be on the table for everyone. That’s where the financial law experts at Williams Litigation Group can offer a few insights on deciding what move is right for you.

Being Honest About Your Situation

The truth is that most people are honest and hardworking. They believe in paying their debts and fulfilling their obligations. However, sometimes life brings obstacles that we simply were not prepared for and cannot overcome the way we would prefer. If you find yourself in a situation where you are only sinking further under water each month with no relief in sight, bankruptcy may be the right decision.

Weighing Your Options

In Georgia, the choices you have are between Chapter 7 and Chapter 13. Each of them offer their own their own set of rules and guidelines and which one exactly is best suited for will depend on the details of your particular circumstances. With Chapter 7 you get the chance to get out from underneath a number of bills over the course of a few to several months.

Although you will need to liquidate assets in order to pay back some portion of your debt to various creditors, your home and automobile may be excluded, depending on the amount of equity available in them. You will also need to qualify by being below the median income level for a household of your size.

Chapter 13 on the other hand, offers clients a chance to establish a payback plan of 3 to 5 years instead of simply discharging debts. This is a great way to navigate a difficult financial situation in the present while expecting things to improve in the near future.

To better understand which option might be best for you, get in touch with the bankruptcy specialists at the Williams Litigation Group here in Brunswick. Out team of legal experts is always ready to lend a helping hand to their neighbors.