Since March of last year, millions of people have lost their jobs. A lot of business owners have been forced to shut down. Surprisingly, bankruptcy filings have been down. Why?
Several factors have forestalled the need to file for bankruptcy notwithstanding the pandemic’s economic fallout:
- People were delaying major undertakings due to a sense that they should reduce their activities and contacts.
- For businesses with employees working from home, there was an opportunity to downsize in certain areas with the potential to continue operating at diminished levels.
- Government relief programs were implemented in response to the pandemic, providing much needed financial relief.
- Businesses and individuals were able to take advantage of low-interest loans and lenders were prevented from foreclosing on properties.
- While job losses and pay cuts created economic challenges, they may not have immediately added to people’s debt load. With fewer stores and restaurants open and leisure activities largely canceled, there has been a general pullback on consumer spending.
After a year of anxiety, anger, financial stress and burnout, many people are returning to pre-pandemic behaviors. With covid case numbers in the U.S. dropping dramatically and restrictions lifting we are all ready to “go back to normal”. And with that, the time to “wait-and-see” is over. It is time to take the steps necessary to recover financially.
Although one never desires to declare bankruptcy, the benefit of doing so is that it provides a trusted mechanism for getting you out of the financial fog that you may currently find yourself in.
We all understand that the major catalyst in the financial crisis was the pandemic instead of a perceived lack of financial discipline, so don’t let the idea of a social stigma associated with bankruptcy prevent you from taking advantage of the benefits of discharging or reorganizing your debt.
Talk to an attorney today, before you go through all your savings, emergency funds and your retirement plan as in most cases those assets would be protected in bankruptcy and you can file now and not lose what you have left.