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Bankruptcy Law Blog

Thursday, May 21, 2020

Bankruptcy Can Be a Lifeline During the Coronavirus Crisis

When the coronavirus began to spread, few could predict that it would so dramatically impact our lives. We were told it wasn’t that serious. We were told it was like the flu. Then we were told to stay home for weeks on end. Now we are facing a financial crisis on top of a pandemic.

Millions of Americans lost their jobs, and millions more had their pay significantly reduced. Meanwhile, the cost of keeping everyone at home as much as possible added up. Families scrambled to get enough devices to work from home, educate their kids, and entertain everyone for hours on end. Food costs increased because every family member was at home all day.

Many families lost loved ones to COVID-19, and many more struggled to care for loved ones who got ill but survived. Who knows how long these families will struggle to pay off the associated medical expenses.

Massive stimulus bills passed by the federal government and the Alabama state legislature have done little to help the average American who was laid off or got sick. What’s worse is that there is no real plan for getting the economy rolling again, so it is unclear how the average family is supposed to dig themselves out of this corona-caused mess.

What Padgett & Robertson Is Doing to Help

The Padgett & Robertson team is ready to do what we can to lend a hand. We are prepared to help families and businesses in the Mobile area take advantage of debt relief programs, file for bankruptcy if needed, and begin to rebuild their lives.

The government has passed a variety of debt relief bills to do what it can to aid families during this difficult time. Our firm is paying close attention to these changes in the law so we can help our clients take advantage of them. We have also found that many creditors are being more flexible than normal at this time because they would rather get repaid all or a portion of their money in the long-run than lose out on debt they are owed forever.

Sometimes, however, the amount of debt a family or business has accumulated is simply unpayable. Rather than letting that debt control your life, it may be time to consider filing for bankruptcy.

Most of the debt families are taking on during the pandemic is credit card debt and medical debt. This type of debt is known as unsecured debt because it is not tied to any sort of collateral. A credit card company is not going to try and repossess groceries, and the hospital is not going to take away the care it already provided.

Unsecured debts can typically be forgiven through the Chapter 7 bankruptcy process. The filer liquidates certain assets, while holding on to many necessary basics, and the proceeds are used to pay off creditors. The debt that is left over is then wiped away.

We know filing for bankruptcy is not an easy choice, but during this difficult time, it may be the best option. Please contact the Padgett & Robertson team today if you need advice on how best to move forward.


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Padgett and Robertson assist clients with Bankruptcy, Personal Bankruptcy, Consumer Bankruptcy, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy and The New Bankruptcy Law in Mobile, Alabama and throughout southern Alabama. Alabama State Bar Association Regulations require the following: "No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers." 11 U.S.C. 528 of the U.S. Bankruptcy Code requires the following: "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”



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| Phone: 251-342-0264

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Alabama State Bar Association Regulations require the following: "No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers." 11 U.S.C. 528 of the U.S. Bankruptcy Code requires the following: "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”