Filing Bankruptcy is Still Possible During COVID-19 Social Distancing

Whether you were on the brink of bankruptcy before the pandemic started, or if quarantine measures have drastically reduced your income, you may be wondering if bankruptcy is still an option for you. Like everyone else, bankruptcy professionals have had to change the way they operate- but filing is still possible.

You will first need to decide which chapter of bankruptcy you need to file, if you will use a lawyer, and which one. If you have low income and mostly dischargeable debts such as medical bills and credit cards, Chapter 7 may be the best option for you. If you are trying to save a home or vehicle from foreclosure or repossession, have filed a Chapter 7 bankruptcy in the last 8 years, or have moderate to high income but simply can’t pay your debts, Chapter 13 may be a better choice for you. You should be able to discuss which chapters you qualify for in a bankruptcy consultation. Legal services have been declared essential in Arizona, so many law offices are still operating. Find an office that offers phone consultations. Some law firms even offer their phone consultations free of charge.

Once you have picked a lawyer and determine which chapter you will file, you will need to submit your documents to your attorney so they can draft your petition. Some offices may offer a secure client portal to upload your documents, but most should accept email, fax, or standard mail. You should not need to drop off your documents in person during a stay-at-home order. You will also need to take a credit counseling course before you file, which can be conducted online.