The Long-Term Financial Effects of COVID 19
COVID-19 is something the world has hardly seen before in the lifetime of the current living populace. No matter what age or gender COVID-19 touches everyone. Isolation, social distancing, face shields, and masks the new global fashion statement quickly became the norm across America in late February 2020. This pandemic’s escalation put almost all Americans on alert and questioned those who normally hailed excellent physical, emotional, spiritual, and financial well-being.
Worst yet were the millions of jobs lost to this pandemic, causing sudden and unexpected financial hardships for many. Millions of companies shut down due to the Corona Virus. As though this was not bad enough, riots and unrest quickly spread across America. The business that stayed open amid this virus were done in due to the spread of riots and ransacking of goods and products not yet affected wholly by this virus.
Americans worry about their health and wellness amid this unpredictable virus and add to this little to no extra money even for life’s necessities.
Worry about mortgages
Car loans
The usual amount of bills that Americans deal with every month and the ability to continue to put food on the table
Water, air, heat, electricity
The school system
Worry about senior parents and grandparents
Americans now understand that the virus can potentially cause long-reaching economic effects for millions of people and business owners across America. This pandemic has thrown millions of people onto a financial path that they feel they have no hope of leaving. People are weighing their options about what they can and should do for relief.
The economic crisis brought on by the COVID-19 pandemic has the potential to cause long-lasting consequences for workers, families, and business owners across the country, possibly resulting in bankruptcy as the last feasible option to lessen the weight of growing debt.
The economic crisis regarding the sudden and unexpected closing of schools, restaurants, retail stores, the hospitality industry, and other businesses brought an uncertain future. Millions of families already live paycheck to paycheck with little to no savings to fall back. COVID-19 touches every nook and crook in America.
Reports say that over 30 million people filed for unemployment since this virus rose its ugly head in March 2020. The unemployment rate reached an astonishing 20 percent, and this could increase to 32 percent before a new vaccine controls this virus.
Every business that remains closed takes income away from hard-working Americans, and as time passes, this becomes more serious every day. Personal incomes continue to suffer, bills go unpaid, and more people are laid off. Health insurance becomes a big issue.
If you are not working because your company is closed, the business cannot pay for your health insurance. Soon health care becomes unaffordable for most Americans. The good thing is that nothing lasts forever. This virus is going to end someday. However, what do individual Americans and business owners do in the meantime?
Is Bankruptcy the Answer?
Businesses across America found that they had little to no option but to file for bankruptcy. Those businesses that took safety measures to stay open saw a significant drop in profits. People are not buying products and services because they can barely afford rent and food.
People feel they cannot spend extra money on other things, which presents a significant problem for businesses everywhere. As people become more behind in their debts, many see no way out except to file for bankruptcy. COVID-19 affects every conceivable aspect of American life, presenting a devastating domino effect for many people.
COVID-19 makes many people take another good long look at bankruptcy as the only feasible option. Bankruptcy can, in a roundabout way, protect home and a car. However, you need to contact this bankruptcy attorney to discuss your situation and determine which type of bankruptcy meets your needs in the best way possible.
There is no doubt that filing bankruptcy can remove a great deal of stress and pressure. Bankruptcy can give you the financial freedom you need to get finances back in order, and your bankruptcy attorney can guide and direct you. Know that recently the court system made temporary changes to the bankruptcy laws to facilitate filing bankruptcy for those remaining in quarantine.
Bankruptcy has the potential to help those feeling hopeless. But, bankruptcy does come with risks for decreasing credit scores, haulting any notions for possible future mortgage loans, personal loans, credit cards, and more for at least ten years after filing bankruptcy. Your attorney explains all the ramifications of filing bankruptcy. Everything in life comes with pros and cons, bankruptcy is no different.
The Domino Effect
COVID19 strikes America
Businesses close
Schools close
Churches close
Layoffs begin
People have no income.
Isolation and quarantines start.
Social distancing begins
Face masks and shields are required. when outside
Financial ruin imminent causing,
Physical, emotional, spiritual, and mental illness
A breakdown of the American family
Increased risk for spousal and child abuse
Divorce of a once stable family a potential
Depression
Hopelessness
Financial Insecurity
Three Types of Bankruptcy Assistanc
Chapter 7
This type of bankruptcy is a personal liquidation of assets to pay debts wiping out outstanding debts dischargeable in a bankruptcy case
Chapter 11
This bankruptcy plan is a reorganization of debts, assets, and business affairs. This type of bankruptcy is meant for corporations and companies.
Chapter 13
Restructuring of debt developing a structure repayment plan over time
Make A Call for Financial Help Today
If COVID-19 threatens your financial security, know that bankruptcy is a challenging decision to make. Yet, under the current circumstances of COVID-19, bankruptcy may be a healing option. Call our bankruptcy attorney today for a free no-obligation consult. Find out if this is a financial route that helps your finances heal.
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