Many people have been laid off, or had hours reduced, due to the coronavirus pandemic. More than 855,000 people filed for unemployment benefits in Ohio in the four weeks after the state started closing businesses, and unemployment claims continue to rise at an alarming rate.
I often tell my clients that the one thing you can control the most when you file a bankruptcy is WHEN you file the bankruptcy. Timing is often a very important strategic decision, and this is true now more than ever. For those who have been laid off or lost income due to the coronavirus, considering bankruptcy now may be extremely beneficial. Many people may qualify for Chapter 7 relief when they otherwise wouldn’t have qualified absent a loss of income. Bankruptcy law requires the disclosure and analysis of the last six months of income in a form often referred to as the “means test”. The temporary loss or reduction of income could be a determining factor in passing the “means test” and qualifying for Chapter 7. Often, a person who files Chapter 7 can keep their home, their car, and their personal belongings, all while discharging their credit card debt, medical bills, and other debts.
If you have experienced a loss or reduction in income due to the coronavirus and are considering filing bankruptcy, you should not delay. Please call our office at 513-723-1600 and schedule a free consultation with one of our attorneys. We are happy to provide this consultation over the phone or on a Zoom meeting.