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Claiming Bankruptcy during Covid-19 can actually help your Business


business bankruptcy attorney in Scottsdale, Arizona

Bankruptcy to some people might seem like a terrible word which usually signifies the end of a business or an institution’s finances. It brings about images of the worst, that a business has hit rock bottom and that the entrepreneur has lost control of the enterprise. However, this is far from the truth and what bankruptcy law suggests. Whether you file for a Chapter 7 or 13 system of bankruptcy, it has been proven to ease the financial situation of businesses and provided great relief for business owners. Rather than being an end, it poses as a new beginning for business owners.


However, operating a functional business has proven to be extremely difficult especially in recent times. With the emergence of the COVID-19 pandemic, it has even become more difficult for business owners to survive in these tumultuous times. It is therefore imperative for business owners to undertake carefully thought out financial decisions and solutions, in order to keep their businesses afloat. This is a huge concern for entrepreneurs especially, since businesses have stopped receiving the same amount of patronage they are used to due to the lockdown. To keep up with expenses, a lot of businesses have accumulated debt, are still accumulating debts, and may soon run into a lot of problems.


A healthy alternative out of this mess is to file for bankruptcy during this COVID-19 season. There are a lot of stated benefits to doing this and these reasons shall be stated below. It is important to note at this point that bankruptcy has a long term effect on credit ratings. Its effect will be visible on your credit report for up to 10 years. This has adverse effects on securing loans, interest rates, housing, etcetera.


You may be wondering, if you chose to file for bankruptcy during this pandemic, how to do so? The processes have been made easier though, with stringent practices to help curb the spread of the virus. Federal bankruptcy courts have modified their operations and work to mitigate the lapses caused by the virus.

Business bankruptcy attorney in Scottsdale, Arizona

Now, if you are having doubts about filing for bankruptcy during this pandemic, and you are wondering if this is the right decision, here are some of the reasons why filing for bankruptcy might work for you:

The Benefits of filing for Bankruptcy in Scottsdale, Arizona


1. Cancelled Debt

When you file for bankruptcy, a huge burden is lifted off your shoulders as your debt is cleared and almost eliminated. This affects your mental health greatly and the stress is taken of you. You can return to life full normalcy once your debt is cancelled. In Chapter 7 and 13 forms of bankruptcy, your debt, especially unsecured debt, will be discharged. This includes car payments, tuition, credit card debt, and medicals.


2. Privacy


Many of our clients at the RLG Legal group, are usually embarrassed about their finances and financial situations. Privacy is a huge deal for them and at RLG, your privacy is guaranteed. Your finances can be in tumultuous waters and filing for bankruptcy might ruin your reputation in the face of the press, business associates, and indeed the general public. Working with a renowned bankruptcy law firm , with affordable bankruptcy attorneys, especially if you are in the Scottsdale Arizona area, will definitely help keep your affairs private and ensure the transition process is as easy as it should be.


3. Cancel Debt Retrieval Calls or Lawsuits


Most defaults on payments usually attract a humongous number of calls from collection agencies. Besides the common rude intonations from the collection agents, their threatening insinuations can also pose as a stress trigger to the pile of problems already on your shoulders. Declaring bankruptcy, either by the chapter 7 or chapter 13 clause, can help cut these calls off, especially as these calls become longer in unison with the amount of debt owed. Once bankruptcy has been filed, creditors lose the right to worry you with these calls, take you to court, or repossess possessions. Thus, restoring your peace of mind.


4. Enhance your Financial Skills

Most people, after going through the process of filing for bankruptcy, learn to improve their financial skills so they do not fall into the same pit they have just been dug out from. Your outlook on money, its usage, and perception changes outrightly and you are able to make sound financial decisions. Commitments are made to improve finances and eventually, the process serves as a great motivation to be serious with finances.


The above stated points are good reasons why filing for bankruptcy might be a viable option for you especially during this pandemic. A major plus to this is that courts have lessened their operation regulations during the pandemic temporarily, to accommodate business owners who wish to file for bankruptcy. Attorneys can represent quarantined clients successfully without affecting the bankruptcy.

Finding Representation during COVID-19 in Scottsdale, Arizona


Self representation during this pandemic might prove difficult as most law firms are closed temporarily due to the pandemic. However, if you require quality representation from bankruptcy attorneys, especially if you stay in the Scottsdale Arizona area, look no further than RLG legal group. They provide their services using the latest technological ease at no extra cost. Exchange of documentation, legal representations, and bankruptcy claims are carried out to the best of the Client's interest.


Click here to contact RLG Legal Group today and get started with your bankruptcy claims today.

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