Three Pandemic Scenarios That Might Make Bankruptcy Your Best Option Now

Struggling financially doesn’t mean you are an unethical person or make poor financial decisions. Most of us hit a rough financial patch from time to time and there’s never been a more legitimate reason to have hit one than the experiences many of us have gone through over the last year or so due to the COVID-19 pandemic. As our country seems to be taking steps toward normalcy, many Americans are still dealing with financial implications that are residuals of the pandemic. Bankruptcy can offer a way out of crippling debt.

How Does Bankruptcy Work?

Filing for bankruptcy does not come without its challenges, but if you have reached the decision to begin the process after considering bankruptcy alternatives, you should know that it isn’t the end of the world. In fact, bankruptcy may be the right choice for you if you have exhausted your options and are still overwhelmed with debt. Bankruptcy can help improve your financial situation and even discharge your debts or allow you to participate in a more advantageous payment plan. Either way, you can end up in a much better place financially once the process is completed. And with many of the protective programs that have been in place to help people financially during the pandemic coming to an end, such as stimulus checks and moratoriums, this may be the right time to consider filing for bankruptcy.

Three Common Pandemic Financial Constraints. 

1. Job and Income Loss. Many Americans either lost their job or had their income cut because of the pandemic. And even as our country begins to recover, a Pew Research Center report published in March indicates that almost half of the American adults who took pay cuts during the Covid-19 pandemic still have not returned to their previous incomes. A loss of income can mean quickly incurring debt you also can’t afford to understandably try to keep a roof over your family’s head.
2. Medical Expenses. Some people are also unfortunately coming out of the pandemic with medical expenses incurred from them being treated for COVID-19. Medical debt is the leading reason why people file for bankruptcy.
3. Necessary Lifestyle Changes. Quarantine taught us all a lot about ourselves and our relationships and unfortunately early data suggests that a significant number of marriages are ending because of it. Divorce is unfortunately an expensive process – one survey determined the average cost was $12,900. The debt associated with lifestyle changes that occur due to the pandemic can also lead to a bankruptcy filing.

Are You Facing Substantial Debt? 

We have all had to make difficult adjustments since the unprecedented beginning of 2020, but some of us are still struggling in financial ways that other Americans aren’t and bankruptcy is likely the best option in those cases. That doesn’t mean that you should undertake this process on your own. No matter the circumstances that led you to this point, you should have an experienced bankruptcy attorney by your side during the entire bankruptcy process who can fight for your legal rights and provide you with additional options you wouldn’t have uncovered on your own. As the Plantation bankruptcy attorneys at Nowack & Olson, PLLC, you can depend on us to provide ongoing support from the free consultation in which we can discuss your situation and options to the end of the process when you can regain control of your financial future. Contact us today to begin the efficient handling of your bankruptcy.

Resources:

nytimes.com/2021/01/30/at-home/manage-your-divorce-expectations.html

forbes.com/sites/joewalsh/2021/03/05/poll-49-of-americans-who-lost-pay-in-covid-pandemic-still-havent-recovered/?sh=41d6804e88ea