Vaccination rates are slowly climbing and states are beginning to open up. However, many people are still dealing with the serious financial impacts of COVID-19.

Job growth has been slower than anticipated and protections against foreclosures and evictions may soon expire. Many in Atlanta and the surrounding areas are struggling to stay above water.

Financial Pressures on Georgia Residents

At our practice, we have seen that Georgia bankruptcy levels have increased during the pandemic. Our Atlanta bankruptcy attorneys talk to people every day who have suffered job loss, illness, loss of childcare, and other issues that have put them under extreme financial pressures.atlanta bankruptcy lawyers

Many people have had to resort to using credit cards to pay for regular expenses. Throughout the country, over half of adults who have credit card debt increased their balances since pandemic restrictions began in March 2020. 

Credit cards are one of the easiest ways to access cash when you need it. However, most of us know that it can also be one of the most expensive. When you are unable to make the full payment, interest charges get tacked on. When those totals compound each month, they can quickly get hard to control.

People in all sorts of situations are seeing their income affected by the pandemic, as well. Many individuals in areas like hospitality saw their hours cut drastically. Capacity restrictions meant lower income when they were able to work. This effect has been felt in countless industries as closures and belt-tightening have affected spending and income.

Between these pressures, more and more people are having a hard time keeping up with expenses, especially those related to servicing debt. If you find yourself in a situation where you can no longer manage payments on loans and credit cards, you are not alone. 

You also have rights under the law. You can protect your family’s stability and take actions that can restore your financial health and protect your future.

COVID-19 Bankruptcy Relief Extension Act

On March 27, 2021, the Bankruptcy Relief Extension Act was signed into law. Under this legislation, the personal and small business bankruptcy relief provisions that were included in the CARES Act are extended through March 27 of next year.

Under this law, the definition of “income” is amended in the Bankruptcy Code to exclude Coronavirus-related relief payments for the purposes of filing both Chapter 7 and Chapter 13 bankruptcy. The law also clarifies the calculation of disposable income under Chapter 13 bankruptcy to exclude COVID-19 related payments. 

Additionally, families and individuals who are currently in Chapter 13 bankruptcy can see payment plan modifications if they are experiencing financial hardships. This includes allowing them to extend the payments for up to seven years after their first plan payment was due.

Exploring Your Financial Options

Financial fallout from the COVID-19 pandemic is expected to continue. If you are experiencing financial hardship due to job loss, illness or other circumstances, there are options you can explore.

Because of the difficulties associated with the pandemic, it is easier than ever to begin exploring your bankruptcy options. We are offering virtual consultations in addition to meetings at our 12 Atlanta locations. It is now possible to complete the entire process, if needed, from the privacy of your own home. 

We have years of experience in bankruptcy that have prepared us for today’s unprecedented events. We can help you navigate the complexities of financial systems to understand your options and the best ways to move forward.

Our Atlanta Bankruptcy Attorneys Can Help

Clark & Washington is Georgia’s largest bankruptcy filer. We have been helping people in Atlanta with Chapter 7 and Chapter 13 bankruptcies since 1983. 

To make the process easier during COVID-19, we can now file your bankruptcy over the phone, with no office visit required. We offer $0 down options to make relief possible.

Have your debts become overwhelming? Get in touch today to learn whether bankruptcy is an option. We can discuss your situation in a free, no-obligation consultation. We’ll help you understand your rights and the best option to restore your financial health. Schedule your FREE Consultation.