Are you one of the millions of Americans who were laid off because of the novel coronavirus (COVID-19)? Or, are you a small business owner whose business has been hit hard by COVID-19? If your answer is “Yes” to either question, unfortunately, you have lots of company. The U.S. economy has been hit hard by the pandemic and no one knows how long the impact will last or when America will fully recover.
Certain industries, in particular, were hit harder than others. If you happen to work in retail, food service, transportation, travel, tourism, entertainment, or another “non-essential” industry and you were laid off, it’s not surprising. And, finding another job in a different industry may only be a Band-Aid as you patiently wait to get back to work in your area of expertise. Then, if you’re married and your spouse was laid off too, you have an even bigger problem – a Chapter 7 bankruptcy may be your solution.
Stimulus Checks May Not Be Enough
Most Americans are excited to receive their economic stimulus checks, which are $1,200 for individuals and $2,400 for married couples, plus $500 per household for each child under the age of 17. While the stimulus checks are very much appreciated and will certainly help inject cash into our strained economy, for unemployed folks, the checks won’t offer a long-term solution, but bankruptcy can.
If you have been laid off due to COVID-19, you may want to consider filing a Chapter 7 bankruptcy, which is reserved for the debtors who need it the most, namely people who have little to no income rolling in the door. Through Chapter 7, debtors can literally erase or wipe out various types of debts including:
- Medical debt
- Credit card debt
- Taxes of a certain age
- Past-due utility bills
- Personal loans
According to an article in MarketWatch, “It seems like everyone is just trying to make ends meet.” The article’s author, Nicole Lyn Pesce noted how many people in the upper class are seeing their six-figure incomes slip through their fingers. Pesce went on to explain how one study found that “...one in four families making $150,000 a year or more are living paycheck-to-paycheck, while one in three earning between $50,000 and $100,000 also depends on their next check to keep their heads above water.”
The MarketWatch article was published in January, two months before President Donald Trump declared a national emergency due to the coronavirus. One can only imagine how things are looking now for the millions of Americans who’ve been living check to check.
If your finances have been impacted by COVID-19, we urge you to contact our firm to find out if bankruptcy can help. Call today to learn more.