The devastating impacts of COVID-19 have been far-reaching. For most of us, the impact has largely been financial. Even those who had relatively good financial health before COVID-19 may be struggling to stay afloat. A lot of you may be asking, “Is bankruptcy my best option?” Others may think bankruptcy is an extreme measure and not appropriate for the ‘short term problem’. Ultimately, it just depends on your specific situation.
If you have less than $10,000 in unsecured debt and your household income is unlikely to be affected moving forward, then there may be some alternatives to bankruptcy that can get you out of debt. If you have over $10,000 in unsecured debt, this may very well be the best time to get your fresh start.
Regardless, we are attorneys who operate an informational-based practice and want to provide everyone some basic information that might help relieve your financial burdens during these times.
The devastating impacts of COVID-19 have been far-reaching. For most of us, the impact has largely been financial. Even those who had relatively good financial health before COVID-19 may be struggling to stay afloat. A lot of you may be asking, “Is bankruptcy my best option?” Others may think bankruptcy is an extreme measure and not appropriate for the ‘short term problem’. Ultimately, it just depends on your specific situation.
If you have less than $10,000 in unsecured debt and your household income is unlikely to be affected moving forward, then there may be some alternatives to bankruptcy that can get you out of debt. If you have over $10,000 in unsecured debt, this may very well be the best time to get your fresh start.
Regardless, we are attorneys who operate an informational-based practice and want to provide everyone some basic information that might help relieve your financial burdens during these times.
The CARES Act permits mortgage borrowers who are experiencing a COVID-19-related financial hardship to seek forbearance of their loan. You may be able to request an initial forbearance period up to 180 days. At the end of that 180-day period, if you are still struggling, you can then request to extend this period for an extra 180 days — adding up to 12 months maximum.
Forbearance means the lender agrees to suspend your mortgage payments without foreclosing on your property. No additional fees or penalties can be assessed for the forbearance; however, the contractual interest will continue to accrue, meaning the debt will continue to get larger. This is a remedy we are seeing a lot of people take. It may be the best option to relieve one of your largest monthly expenses in the short term.
To be eligible, your loan must be a federally backed mortgage. Other mortgages may also be able to receive forbearance at their servicer’s discretion. However, be sure the lender is not requiring a ‘balloon payment’ once the forbearance ends; this would require you to make a lump sum payment of all missed payments at once.
Contact your mortgage company to find out if you are eligible for a forbearance.
Although automobile creditors, credit cards, medical providers or other unsecured creditors are not required to modify payment obligations or arrangements, they may do so voluntarily. If you were not delinquent on the account before requesting a modification or deferment, the creditor is barred from negative credit reporting if you comply with the modified payment terms. If you negotiate a modification with your creditors, make sure the terms are reduced to writing and signed by both parties so there is no misunderstanding.
The CARES Act provides more favorable borrowing terms and waives some tax penalties on early withdrawal from retirement. Although this is extremely tempting, this is usually a very bad short-term plan. When you pull money out of retirement accounts like your 401(k), you are setting yourself back years. In addition, almost all funds in an IRS qualified retirement account are exempted or protected from the claims of creditors, so you’re giving up a very protected asset to pay creditors whose debt you may be able to handle with other means.
For detailed information on how we can help you organize your finances, call our firm at (417) 4NO-DEBT today.
"For some of us, dealing with the mess we've made of our finances can be a very emotional experience. Being represented by Ted was like having a calming, highly competent Captain guiding you through the process. I highly recommend his services. Thank you!"
"I was disappointed to have to file bankruptcy at my age, but my lawyer Jordyn worked with me on the payment, and getting in and out court was so timely! High recommend this practice compared to all others!"
"I appreciate the expertise from Ted Tinsman. He handled my case both professionally and considerately."
"Ted and his staff were amazing, and went above and beyond to assist me in a very difficult process. I worked directly with Jordyn Hill and he was knowledgeable, compassionate and attentive to my specific needs. I would recommend them to anyone. They are affordable, too!"
"Jordyn Hill was my attorney for my bankruptcy, and I couldn’t have asked for a better guy. He was sensitive, and understanding. I felt he truly cared about what I was going through. I would recommend Jordyn to anyone looking for a caring, sensitive attorney to help guide them through this journey. Thank you, Jordyn!"
"Mr. Tinsman put me at ease almost instantly and handled a very stressful situation with professionalism and compassion. He was very thorough and understanding. His office staff was also kind and always helpful! I am so thankful to Mr. Tinsman for setting my life back on track so I could move forward."
"Ted and his staff were great. They answered all of my questions and went over all the options to help me make the best decision. They were always quick to communicate with me when something changed and always responded when I contacted them."
"Thank you for representing me. I think you were terrific, and most of all you were very patient with me and I appreciated that tremendously."
"Ted made the process of filing for bankruptcy easier than I expected. He was there every step of the way until the bankruptcy was completed. I would recommend Ted Tinsman, should you consider taking that step."
"Thank you so much for handling my case and helping me move forward with my life."
"I would highly recommend Ted Tinsman for an attorney. Ted and his staff were awesome, and the ultimate professionals in my case. He put my mind at ease from the very beginning. He is very knowledgeable, very kind and understanding. His belief in God shows through in his work."
"Jordyn Hill was excellent as our attorney. He guided us through every step and it went very smoothly. I'd highly recommend Jordyn to anyone needing these services."
"Mr. Tinsman made a very difficult situation a lot less stressful. His representation was professional and non-judgmental. He walked me through a step-by-step process that put my life back on track! I would highly recommend his services."
"Ted and his staff did an awesome job for me and I would put them #1 in my book. Made me feel more like a friend than a client. If you should be forced to take this action, you can not go wrong with Ted."
"Recently hired Ted for my bankruptcy case and was extremely content with his services! He was very professional, efficient, and well worth every penny."
"Ted literally saved my sanity! Once I met him and he got things started, he took such good care of me from start to finish that I would highly recommend him to anyone. He’s thorough, knowledgeable and best of all, easily accessible. Whether it’s returning a phone call or email I never had to wait…"
"We had a very complicated case, but Jordyn Hill was with us every step of the way. Things of this nature are going to be stressful, but while being represented by Jordyn Hill, we felt like we were always being kept in the loop. The pricing was declared during our initial meeting."
"After working with Ted and his team over the past 5 years of our case, I can honestly say that I would recommend him to anyone who finds themselves in need of a bankruptcy attorney; he was consistently responsive to our questions and concerns, and provided direct and easy to understand information."
"Mr. Tinsman is very knowledgeable and patient. He helped me through a difficult time with ease and calmness. He never failed to answer emails with questions within a short amount of time. When I didn’t understand something he made sure he explained it to where I did understand it."
"Great attorneys and staff. Jordyn was great to us. Honest, laid back, and real."
"Very fortunate to have Ted as my attorney. Very professional, knowledgeable and responsive. I am made to feel as if I am a priority at all times. I am beyond impressed! Thank you!"
"Ted Tinsman was responsive, helpful, and professional during my bankruptcy proceeding. He alleviated my fears and made the process simple. I recommend Mr. Tinsman."
"I really appreciated Jordyn Hill’s help. He went out of his way to help me as I do not drive. He is very personable, knowledgeable, and I would highly recommend him to anyone that needs the service of a bankruptcy lawyer."
"You can’t go wrong with Ted! I really can’t say enough positive things about him. His knowledge of the laws is second to none! He was so kind, so understanding and so helpful at guiding us through this process. "
"Ted was amazingly professional and helpful through the entire process. I appreciated how forthright he was, how thorough he was, and that he made an organized and friendly appearance at our meeting with the trustee. It really helped us feel more comfortable and confident that Ted was the perfect choice."
"I usually don’t do these reviews but with my experience with Jordyn Hill deserves one! He was very prompt and just a really nice man. He never made me feel uncomfortable or embarrassed of my situation. He was knowledgeable on any and every question I had!"
"I want to thank Mr. Tinsman and his staff for assisting me during this very difficult time financially for me. Life has a way of ‘throwing us some unexpected curves’, so to speak, and can cause us a great deal of stress. I recommend Mr. Tinsman and his staff to anyone whom needs bankruptcy assistance."
"Jordyn has one of the highest levels of integrity as I have ever met in this industry. He enjoys helping people get through some of the most difficult times in their life while helping them make smart decisions that will rebuild their life."
"I recently had the pleasure of meeting with Jordyn Hill. Without question he is someone I will recommend to anyone in need of a bankruptcy attorney. Knowledgeable and really cares about his clients. Thanks Jorydn!"
"Mr. Tinsman was very professional, trustworthy and put you at ease. He took the time to explain the process in terms a lay person can understand, very thorough and detail-oriented. I felt he was carrying the burden for me. He is a pleasure to work with."
"Very professional and polite service from the receptionist to the lawyer. I would recommend Ted Tinsman to anyone I meet. He’s one of the nicest lawyers I have ever met … genuinely nice and respectful."
"Hi, Ted. I just wanted to thank you for helping us. I feel like a huge weight has been lifted from my shoulders. It’s a great feeling!"
"Jordyn Hill was so helpful through this entire process! He was very thorough in explaining the process and answering any questions I had. He was professional and kept in contact through every step. Choosing if bankruptcy is right for you is a hard decision to make and Jordyn was non-judgemental, caring and compassionate."
"(Ted is an) excellent lawyer; he is very patient and kind. You know that he is looking out for you."
"Ted Tinsman was great in helping us through our bankruptcy. He made it very simple, understandable, and unstressful. He was a breath of fresh air during a very depressing time."
"Jordyn Hill is very professional and blunt! I knew I was in good hands when I met him. Thanks so much for helping me get through this!"
"Mr. Tinsman was very helpful and great to talk to. He also replied to my emails in a very timely manner. Our case was resolved to our satisfaction. I give him my highest recommendation."
"Ted Tinsman was great to work with and made the whole process as easy as something like that can be."
Ted Tinsman was gentle and professional. He always had our best interest at heart. When amendments and changes came up, he went the extra mile to be sure everything was correct and the additional steps were taken to have a successful outcome. He is timely responding to both emails and phone calls.
"Thank you so very much for representing me during this stressful time. You have made the process so much less complicated than I originally thought and your kindness… along with your staff’s kindness… has helped me feel relaxed about your representation of my case. It feels good to have this weight lifted off my shoulders."
"My attorney Jordyn Hill made this very stressful experience bearable. He was with me every step of the way, and explained everything. I could not recommend him more highly. I put my faith in him and he more than delivered."
"Ted was fantastic and very detailed. Would recommend him highly. Very professional and personable!"
"Ted did a fabulous job, which entailed more than I expected. The process was well explained in advance and was simpler than I thought. I would refer anyone needing this type of legal representation to Ted."
"Jordyn Hill was our attorney and he was excellent. He was always helpful and answered any questions we had. I would highly recommend him."
"I highly recommend Ted Tinsman. He put my mind at ease at the initial consultation and he delivered everything he promised. If I had a question, he responded the same day. Also, his rates are more reasonable than other lawyers in this area."
"Ted helped us through a difficult process and time. He kept in touch regularly via email, and was easy to work with. He even answered my panicked emails while out of town just to reassure me that our case was A-OK! If you are caught in this kind of situation I highly recommend hiring Ted."
"Although we would have preferred NOT to have had to obtain an attorney for this purpose, Ted Tinsman was extremely professional and never “shamed” us or made us feel that we should have done better. He was always very prompt in returning our calls and/or emails, explaining in terms we could understand. (No legalese!)"
"Darryell and I would like you to know that we are so grateful we chose you as our lawyer! We got the results we were hoping for without having to struggle to find the right fit for us. I appreciate your hard work and attentiveness to our case and to us personally."
Many people in Missouri are currently alleged to have received an overpayment of unemployment benefits during the pandemic and wondering how to deal with these overpayment of unemployment claims. Does bankruptcy wipe out overpayment of unemployment benefits? The short answer is yes, if the benefits were not received fraudulently. Bankruptcy will stop any garnishment of wages and liens from attaching to real estate for overpayment of unemployment benefits. Basically, bankruptcy will prevent the Division of Employment Security from taking any collection actions against you. However, it is important to know that you may have future benefits withheld if you make an unemployment claim in the future. Set up a free consultation with one of our attorneys if you would like to discuss this further.
Entitlement to bankruptcy relief is largely based on your gross income earned in the six months before the filing of your case. If you had already been considering bankruptcy or other debt relief options, now might be the best time to file if your income was reduced by COVID-19.
If you do fall behind on any debt, you should prioritize your debt by first foregoing unsecured credit card and medical debt payments. Your ability to use these types of accounts may freeze when you become delinquent. However, do not get further unsecured signature loans to pay credit card or medical debt. This will just make your situation worse. It may be better to file a bankruptcy now, to ease your payment outflow, rather than trying to avoid bankruptcy or negative credit results. Very frequently, bankruptcy can actually improve your credit score (see our Bankruptcy Myths page for details).
If you have more than $10,000 of unsecured debt that you cannot pay, or you signed up for a vehicle payment that you just can’t afford anymore, it is best to contact our office to see if bankruptcy is right for you. We offer low, up-front pricing that allows you to get relief from your creditors much sooner than most other bankruptcy firms (see our Bankruptcy Costs page for details).
For detailed, personalized information on how we can help you with your finances, schedule your consultation by completing our online form or dialing (417) 4NO-DEBT today.