Coronavirus Bankruptcies Are Coming

Many businesses small and large have felt the ever crushing financial effect of the novel coronavirus. Filings of Chapter 11 bankruptcies, a form typically reserved for companies, have increased at an exponential rate since the onset of the global pandemic. As stimulus negotiations have stalled, and unemployment benefits have either expired or been reduced, you may begin to feel the strain in the near future. While businesses have felt the immediate impact of the virus and have sought bankruptcy protection, individual bankruptcy filings are predicted to explode in the coming months as well. Here are a few ways that you can prepare for the ensuing turbulent financial times that lay ahead, and some information on how the coronavirus may impact bankruptcy filings in the coming months.

Prioritizing Your Financial Obligations

While all of your current financial obligations are important to pay attention to, some are more pressing than others. If you are facing financial difficulty due to the pandemic and currently have a mortgage, you’ll want to pay special attention to the government programs and provisions that may provide you with relief during this time. Still, if you are able to make your monthly mortgage payments, it is recommended that you make this a priority.

Relatedly, student loans backed by the federal government may be eligible for forbearances during this time. Contacting your loan servicing provider to see if your loans are eligible may provide you with some temporary relief. Depending on where you live, your utilities (gas, water, electric) may temporarily be immune from being shut off. However, these unpaid past due balances may continue to accumulate, so you should make payments on them now if you are able. For all of your other bills, consult with your servicing provider to see if you are eligible to suspend payments or get them waived altogether.

Prepare For The Future

With no end in sight to the global pandemic, if you can afford to preserve your funds for your most pressing obligations, it would be wise to do so. In the event that the pandemic continues for longer than anticipated, you will have some money to continue making payments toward your essential bills like food and other necessities. Reserving your remaining funds for the essentials will also ensure that if you file for bankruptcy in the future, then you did not waste it on bills that ultimately may be discharged.

Contact A Bankruptcy Lawyer

If your financial situation is dire and you want to see which options are best for you moving forward, it is recommended that you consult with a bankruptcy attorney as soon as possible. With the potential wave of coronavirus bankruptcies looming, you might want to take advantage of filing sooner rather than later so that you can be closer to a fresh financial start. The Bankruptcy Team, PLLC is devoted to helping clients resolve their financial issues through bankruptcy, foreclosure or other viable means so that they can get the fresh start that they are entitled to. We are here for you.  Our experienced bankruptcy attorneys will thoroughly review your situation with you and will position sound solutions which fit your unique needs. To consult with The Bankruptcy Team, PLLC, call or contact us today.