Filing Bankruptcy during COVID-19.  Check out our Coronavirus FAQ’s.  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 Can Still Filing Bankruptcy During COVID-19

You will first need to decide which chapter of bankruptcy you need to file.  Next,  if you will use a lawyer, and decide which bankruptcy lawyer you are using. Plus, 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.

Stopping Foreclosure and Repossession by Filing Bankruptcy

Therefore, 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 bankruptcy in Phoenix 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. Our Arizona bankruptcy law firm offers FREE phone consultations for debt relief.

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. Plus,  some bankruptcy offices may offer a secure client portal to upload your documents.  Also, most BK law firms should accept email, fax, or standard mail. You should not need to drop off your documents in person during a stay-at-home order.  Additionally, you will also need to take a credit counseling course before you file, which can also be conducted online.

Telephonic Bankruptcy Petition Signing

The next step to filing your bankruptcy would typically be to come into the office.  Once in office, you would then review your petition with an attorney.  The bankruptcy attorney would then file your case. Although a petition signing wouldn’t be over the legal limit for a gathering right now, many offices are offering telephonic petition signings to protect themselves and their clients.  Our Phoenix bankruptcy office is also doing Zoom and Video petition signings.  Additionally, we offer a Zero Down Bankruptcy Filing Option.

Another way of maintaining social distancing during your bankruptcy would be that your attorney can mail you a declaration of electronic filing with attached return postage. Though this is a slower process, it is safe.  Next, you will review the petition with your attorney over the phone.  Then, you sign the bankruptcy petition and mail back the declaration of electronic filing.  Finally, your bankruptcy lawyer will then electronically file your case.

The next and potentially final time you would have to appear in person for a bankruptcy is your 341 Meeting of Creditors. Because the court typically schedules many cases to be heard in a 30 minute time frame, continuing as usual simply isn’t possible. Currently, all 341 hearings scheduled through May 10, 2020, will be held remotely. This date may extend as government officials assess the situation.

If you, like many residents of Arizona, are struggling financially during an already-stressful pandemic, you don’t have to wait for quarantine orders to be lifted to seek out help. Our Arizona bankruptcy services offers free phone consultations and complete remote bankruptcies for the time being. Contact our bankruptcy office and schedule your free consultation today.