Contact Now, Talk to a Lawyer Before You Consider Bankruptcy :: WRAL.com
Raleigh, North Carolina – So many families are struggling financially right now. Special programs help, but at some point they may not be enough.
If things don’t improve, many could head for bankruptcy, and these people should strategize now.
“It’s a good time for people to come in and start thinking, ‘If this doesn’t come back to the normal life we knew before the pandemic, what are our options? What can we do ? How do we talk to our lenders and our landlords, ”says bankruptcy lawyer Rebecca Redwine.
She told 5 On Your Side that she now gets a lot of calls from people who don’t know what the future holds and don’t know what’s going to happen.
For those facing financial difficulties, Redwine says the first step is to communicate.
“Keeping your lender informed, keeping your landlord informed can be helpful,” Redwine said.
Assess what you owe: Are you behind on your bills, and if so, how many payments have you missed?
She says to try and work with lenders or your landlord.
“Take a close look at your numbers, be realistic about your income and expenses, and be realistic about when it’s going to change, if it’s going to change,” says Redwine.
She says some face a double problem.
“Many small businesses have their owners signed personal guarantees, which is a fancy way of saying that the business owner is personally responsible for the debt the business owes,” she said.
This means that a small business owner could face both personal and business bankruptcy filing.
She says to contact a lawyer if you have any questions, as bankruptcy might be the best option. “It may just be a pretty strategic tool in the toolbox to use to get you out of a situation you didn’t create,” says Vin Rouge.