Should I File Bankruptcy To Recover Financially From The Pandemic?
Should I File Bankruptcy To Recover Financially From The Pandemic In Delaware County, Ohio?
The COVID-19 pandemic and the economic measures taken by the government have placed individual finances in an unusual position. One would have thought that bankruptcy filings would sky-rocket with all of the COVID-19 business closures. The opposite was true; filings are at an all- time low. Businesses closed, people worked from home, people shopped from home, people stopped traveling, and people stopped spending money. At the same time, unemployment compensation was available in amounts unheard of prior to 2020; unemployment compensation was available to more people than ever before; the government handed out multiple stimulus checks; mortgage companies stopped foreclosing; landlords stopped evictions; the IRS and student loan companies stopped collecting; many private collection agencies dialed back aggressive collection efforts. People didn’t need to file a personal bankruptcy. They had money and no one was collecting.
As we emerge from the other side of this pandemic, a financial crisis is looming. People have grown accustomed to having extra lump sums of cash, and not as many places to spend it. However, slowly but surely, financial realities are setting in. Mortgage payments are coming out of forbearance. Student loans must be paid again starting in February, 2022. The IRS is collecting again. Unemployment compensation is coming to an end. Gas and grocery prices are climbing. And the holidays are upon us.
It is very likely that people will find themselves unable to make ends meet. It is important to consult with a professional before your finances are out of hand. There are ways to protect retirement accounts, savings, and your home. Take a hard look at your finances now.
Bankruptcy is usually an option of last resort. However, consulting a bankruptcy professional early in a financial crisis can help you to keep your assets, get control of your debts, and put you on the right path going forward. Remember that a bankruptcy filing is not a death sentence. People can buy cars, buy houses, refinance their home, and save for retirement, all while in bankruptcy. But, you will need to provide detailed information to your attorney to help him/her analyze your circumstances and determine your best options. Don’t wait until you have exhausted your retirement and savings, or borrowed against your home to ask for help.
Take control of your finances now to protect your financial future. Whether you file a bankruptcy or not, a bankruptcy attorney can help you assess your options, and find a path forward.