Submitted by Jeff Bursell on
On May 13, 2021, the CDC issued new COVID mask guidance. The announcement allows for fully vaccinated Americans to go without a mask. The statement by the CDC states that if fully vaccinated, you do not have to wear a mask at most indoor and outdoor locations and removes the social distancing rules.
Subsequent to the CDC announcement, Minnesota Governor Tim Walz announced that he will issue an executive order to remove the statewide mask mandate on May 14, 2021. While the state-wide mandate is lifted, cities, municipalities, and local businesses still have the right to mandate masks.
You might ask, why does this matter for bankruptcy?
The answer is that the lifting of the mask mandate is the first step to lifting all the consumer protection orders that the governor put into place since the beginning of the COVID pandemic. In the simplest terms, your creditors will be free to come after you for the money you owe them. Collectors and creditor attorneys will begin coming after debtors with calls and letters which will lead to lawsuits, garnishments, evictions, and foreclosures.
If bankruptcy is something you have thought about, now is the best time ever to get moving because:
– With no collection pressure now, you allow yourself to properly plan for bankruptcy. Thus, avoiding costly issues such as preferences or fraudulent transfers.
– In normal times, some creditors ALWAYS challenge the dischargeability of a debt. With the COVID restrictions, these creditors have decided to NOT challenge these types of debts. Thus,
a debtor can walk away from a debt that normally they would not be able to discharge.
– You will not have the stress of a creditor taking money from you via garnishment or bank levy.
– With the magnitude of financial issues brought upon by the COVID restrictions, the old bankruptcy stigma is non-existent. People understand that bankruptcy may not be something you
wanted to do but you had to do for the betterment of your life.
The bottom line is this: when faced with financial difficulties, bankruptcy can really be a benefit. Additionally, with the lull in collections, now is as good of a time to file as ever.
