A chapter 13 bankruptcy in Tampa, Florida has seen a lot of changes since last year due to the impact of the pandemic. A repayment plan for chapter 13 bankruptcy usually lasted for almost 3-5 years but since the pandemic stuck, things have taken a great turn. According to some estimates, almost 40 million American people have lost their job and many of them were already facing the chapter 13 process. The pandemic has been devastating even for those who have been working with commitment for years and now face uncertainty after being laid off. If people don’t have employment and are facing bankruptcy too, they won’t be able to pay off and complete the chapter 13 plan. This situation seems critical but bankruptcy lawyers in Tampa explain the fortunate options that a client has in such a situation.
The Several Options for a Client Affected By the Pandemic
The covid-19 crisis has been so devastating that the US saw one of the biggest surges in the unemployment rate and a very expensive stimulus plan was introduced to bail out the situation. It was pretty obvious that the court was about to experience a flood of bankruptcy cases. A lot of people might wish to modify the existing plan due to how severely they have been affected by the pandemic. If you consider the current climate it favors the debtors. Many people have lost their job and the attorney might be in favor to modify the existing plan. Job loss would act as the prime reason as to why the plan should be modified and the monthly payment of that behalf could be lowered. All the plans that are in the process to be confirmed could also be considered for modification.
Cases of a Hardship Discharge
A lot of bankruptcy lawyers in Tampa explain that an attorney might look for a premature hardship discharge if the client has lost the ability to pay and the debt scenario in such a case stands beyond repair. The hardship discharge will erase the chapter 13 bankruptcy plan altogether. It is important to access the real situation of the client. If his ability to make a living has changed apart from the fact that he is unemployed, hardship discharge can easily be considered. The covid 19 has left many people with permanent disabilities and such a situation not only demands the plan modification but at times hardship discharge is more a legit requirement.
Another possibility discusses how a recently laid-off worker might be eligible to convert his Chapter 13 bankruptcy to chapter 7. It is a possibility that you have already discussed the chapter 7 bankruptcy in Tampa with your lawyer when you were considering the bankruptcy option you have months ago. But back then you were already making a lot of money and did not qualify for the chapter 7 bankruptcy. Now when one has lost his job due to the pandemic your case seems more legit to be able to qualify for the chapter 7 bankruptcies.
So if you are one of those people who have a chapter 13 bankruptcy in Tampa and have now lost your job, your attorney would brief you about all the possibilities open for you, Whether it is the hardship discharge or a plan modification, or conversion to chapter 7 bankruptcy. The Cares act laid out by the government is also helping largely. We at Galewski have a great team who are willing to assist you during this process. We will access your situation and would help you to choose the best option available to provide you with immediate relief.
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