COVID-19 Has Lead To Income Disparities, Bankruptcy For Some, Best Year For Others

family sitting together while wearing masks

In Columbus, Ohio, the economic disparities between community members are like night and day. For some, COVID-19 has cost them everything--their homes, health, and jobs and now, they are left to stay with family members or be on the streets. But on the other side of town, the residents flourish, buying and selling multimillion-dollar homes and preparing for the holiday season.

According to an article by Reuters, this is because of the “K-shaped” recovery phenomena, where those with higher economic worth continue to climb upward while those on the bottom will continue to suffer. Economists explain that with minimal government aid available, jobs still closed, and many more permanently shutting their doors, it will be increasingly difficult for people to get back to work until there is relief from the novel coronavirus and people no longer fear for their lives.

In Columbus, the economy is rooted in hospitality, education, health, government, and professional services. This has allowed the local economy to fare better than other regions but still, economic disparities have left many wondering what to do as the weather gets colder.

This is especially difficult because, in September, the U.S. Centers for Disease Control and Prevention (CDC) banned all evictions nationwide until Jan. 1 to prevent a surge of homeless. Under the order, landlords cannot evict tenants who can no longer pay rent because they have been affected by COVID-19. Unfortunately, landlords are not required to tell tenants this and can file eviction lawsuits regardless. Only when the tenant knows of their legal right can they stop the eviction, unfortunately, many do not know until it’s too late.

So for those families struggling to keep a roof over their heads and utilities on, they have turned to bankruptcy to salvage the income they have and halt any wage garnishments from occurring.

If this situation sounds familiar to you, you need to act fast. Filing for bankruptcy can help you and your family during this difficult time, as you take care of the ones you love most.

COVID-19 and Bankruptcy

Remember, in order to qualify for bankruptcy, you need to be employed. In addition, you will need to supply:

  • Two months of pay stubs
  • A list of all debts
  • Bank statements
  • Lawsuits or other court papers
  • Car titles
  • Mortgage and deed paperwork
  • A list of all your assets

From there, we can determine if you are qualified for Chapter 7 or Chapter 13 bankruptcy.

We know this has been a difficult year, but we can help you get back on your feet.

Financial restart for those in Columbus and Central Ohio

We know that times are hard, and the last year has been extraordinarily difficult for individuals and families across the country. You may be apprehensive to make any decisions right now, as COVID-19 has fed into much uncertainty and worry. But when you choose The Jones Law Firm, we will work with you to ensure your financial needs are met. If you live in Columbus or central Ohio and are considering bankruptcy, do not delay. Contact The Jones Law Firm today to schedule an appointment.

Categories: General Bankruptcy