Filing For Bankruptcy During COVID-19
Thinking of filing for bankruptcy during the COVID-19 outbreak? You’re not alone. Though the full impact that the virus will have on our country’s economy is unknown, the financial devastation that shutdowns, capacity restrictions, and business closures are having on workers is becoming abundantly clear.
According to the Bureau of Labor Statistics' July 17, 2020 report, Florida’s unemployment rate currently sits at 10.4%. As compared to other states, Florida is ranked 33rd in terms of the number of people unemployed, so while things could be worse, for example, we could live in Massachusetts, which is currently the state with the highest unemployment rate, 17.4%.
Things are looking rather bleak in the sunshine state from an economic perspective, but to really make an informed financial decision regarding whether now is the appropriate time to be considering bankruptcy, you need to gain a complete understanding of the problem.
How is the Coronavirus Affecting the Economy?
According to John Hopkins University (“JHU”), more than 2.1 million people worldwide have been infected with the COVID-19 virus. While the impact of losing loved ones is staggering, the economic downturn caused by the deadly virus may impact our economic system for a generation. According to JHU, there has been a huge influx of unemployment filings due to the pandemic. This is evidenced by the fact that during one four week time period, 22 million Americans filed for unemployment. Moreover, the same article by JHU indicates that the United States Treasury Secretary has indicated that unemployment rates in the U.S. could balloon to roughly 20%. Similarly, the World Bank has indicated that we could see a 5.4% contraction in GDP due to market volatility, which could seriously affect how countries, and thus, consumers obtain credit.
To make matters worse, major institutions such as Stanford University have sounded the alarm that the United States could see a wave of foreclosures hitting the real estate market. Though Florida’s moratorium on foreclosures and evictions will be in place until September 1, 2020, the question is what will happen once those restrictions are lifted?
Bankruptcy Could be a Viable Option for You
With so much financial devastation taking place in the U.S., some consumers might find that bankruptcy is a viable option for solving their financial difficulties. The fact is, Chapter 7 and Chapter 13 of the bankruptcy code were enacted as a way to help people like you during hard economic times. Indeed, in certain instances, filing for bankruptcy could allow you to eliminate most of your debt and receive a fresh financial start for you and your family.
As a general matter, our staff at the Peck Law Firm, P.A. always encourages individuals like you, who are searching for an answer to their financial issues, to simply contact our office for a free consultation in order to see how our bankruptcy attorney could assist you and explain your financial options. We cover a wide range of practice areas including:
- Bankruptcy
- Debt Collection Harassment
- Foreclosure Defense
Our bankruptcy attorney has years of experience helping average, everyday individuals obtain the financial security they are searching for, and we are ready to begin working on your case today. So, call our office now to schedule a free, confidential consultation and learn how our bankruptcy attorney can help you.
