Signs It’s Time to Realize That a Personal Bankruptcy Makes Sense during the Current Covid-19 Pandemic
Maybe you were having difficulty paying your bills during the first two months of 2020, but things got better even though you no longer had a job. Should you relax and remain secure in the idea that the banks and government are on your side? Here’s what you need to consider before making the choice to sit tight and watch what happens.
Have you been stopped struggling with your bills and the idea of declaring a personal bankruptcy. If you did, you aren’t alone. After all, the government made up for your loss of income in one or more ways. In fact, the government provided stimulus money to individuals and married couples so that they could continue eating during the shutdown. The U.S. government gave people the opportunity to receive $600 federal unemployment payments weekly and to take advantage of the Paycheck Protection Program. Foreclosures and evictions went unfulfilled, and mortgage and credit card debt remained in place but without the same dire consequences that they once had. What happens though when all of those benefits disappear?
What Government Statistics Are Saying about Personal Bankruptcies in the U.S.
As recently as July 29th, the Administrative Office of the U.S. Courts stated that personal bankruptcies dropped 11.8% in the period from July 1, 2019 to June 30, 2020. Although this number includes both business and personal filings, it really pertains to personal cases, because business filings dropped by only one case during that time. Good news, right?
Despite Government Statistics, a Personal Bankruptcy Might Be a Good Idea
Of course personal bankruptcy filings fell for the period ending June 30, 2020. After all, the government took care of its citizens, but the money is going to run out, dry up, or simply stop coming to the American people. If that happens – no more stimulus checks or holds on foreclosures – can you pay your bills?
Don’t Get Too Comfortable with the Drop in Filings
What happens now? Businesses are opening their doors. You now have access to goods and services that weren’t even available three months ago. Do you have the money to pay for them? You shouldn’t rely on the government’s findings that personal bankruptcy cases are down. It does not mean that they won’t go up. If you could not pay your bills prior to the coronavirus pandemic and government assistance, how do you expect to pay them without it?
Be Prepared for Delays in Bankruptcy Proceedings
The number of Covid-19 cases fluctuates from high to low on any given week. Therefore, city governments like the one in Miami, FL, need to keep changing their restrictions and limitations on access to public buildings, including courthouses. If you decide to wait it out, do you have enough money in reserve to stay afloat?
You Can’t Pay Your Bills and You Need to Worry About It Now
If you can’t pay your bills, it is time to let go of your sense of shame or embarrassment. Realize that the banks want their money and foreclosures will start up again as soon as restrictions are lifted. Don’t allow a false sense of security in what the government is providing now keep you from protecting what is yours.
Hire a Bankruptcy Attorney
If you decide it is time to file your personal bankruptcy in Miami, FL, you may want to hire an experienced bankruptcy attorney. Who else is going to know the process and the documentation needed to achieve a successful closure for this chapter of your life?