Bankruptcy experts are expecting to a see rise in filings over the next few weeks.
The catalyst is the end of the federal government’s eviction moratorium which is set to expire June 30th. Although delinquent tenants can’t avoid eviction through bankruptcy, the process does allow them to delay eviction and avoid paying off past due rent.
Considering the benefits, struggling renters are expected to consider the bankruptcy option as the deadline approaches. According to the U.S. Treasury Department, approximately 7 million people were behind on rent as of April, another 5 million lacked confidence they could make future payments.
“It’s certainly anticipated that filings will increase once those moratoria are no longer in place,” said Judge Kathy A. Surratt-States of the U.S. Bankruptcy Court for the Eastern District of Missouri at a virtual conference last month.
There is no one-size-fits all bankruptcy
When most people think about bankruptcy, images of foreclosures, poverty, and stress inundate their imagination. Although bankruptcy is hardly a walk in the park, it doesn’t have to be the nightmare it’s depicted as.
If done correctly, bankruptcy can actually be a liberating experience that affords the filer a fresh start and new outlook. The first step is finding an experienced bankruptcy attorney.
An experienced bankruptcy attorney can identify the right strategy for you based on your unique objectives. They can determine whether chapter 7 or chapter 11 is more suitable for your situation, identify unnecessary risks and costs, and chart a path forward that works for you.
Silverdale, Washington residents shouldn’t hesitate to get started. If cost is a concern, many lawyers offer a free initial consultation at no out-of-pocket cost to the client.