End of Additional Unemployment Benefits Has Many Considering Bankruptcy

group of business professionals waiting for a job interview
Nearly 30 million Americans are currently receiving unemployment benefits. But now, as House Democrats push for another round of emergency relief, Senate Republicans and the White House are urging Americans to get back to work as soon as they can. While some Americans have been able to find temporary employment, additional relief options, and postpone mortgage and rent payments, many more are wondering how they will stay afloat once the additional $600 runs out. For those with mounting debts and no financial relief in sight, bankruptcy is becoming more of an option.

Personal Bankruptcy in the COVID-19 Era and Unemployment Benefits

Without a stable income and health insurance, many families in the United States are suddenly faced with an influx of debt that never before was a problem. For those who were already in financial hardship, the economic implications of COVID-19 have been catastrophic. But when you lack a sense of stability and there seems to be no relief in sight, how can you work through your debts while a global health crisis continues to plague the nation? Bankruptcy can help alleviate some forms of debt--but not all. In general, bankruptcy can diminish debts from:
  • Medical bills
  • Credit and store cards
  • Home loans
  • Car loans
The common misconception has been that COVID-19 has impacted only those in lower-income earning brackets. The reality is that the coronavirus does not discriminate. Those employed in the following industries were hit hardest during the pandemic largely due to travel bans, stay-at-home mandates, and business closures across the country:
  • Airlines
  • Casino and event venues
  • Automotive and oil
Small business owners were also among those impacted by the country’s quarantine measures. According to MarketWatch, Yelp reports that 55% of small businesses on its platform have reported closing for good during the COVID-19 pandemic. If you have been impacted by COVID-19 and now are considering bankruptcy, there are a few things you need to know.

COVID-19 Influenced Bankruptcy for Small Business Owners and Individuals

Whether you are a small business owner who has been forced to permanently close your doors forever or an individual who has been out of work for months, bankruptcy can be the relief you need to help you through this trying time. But there are some considerations that you need to make:
  1. There are bankruptcy fees. In addition to attorney fees, there are also court and filing costs associated with bankruptcy. This is not a free process; however, it can be managed.
  2. Bankruptcy takes time. Bankruptcy can take months or even years to complete so while some stresses will be removed, the process is not automatic.
  3. Your credit will be impacted temporarily. While you are likely already experiencing a poor credit score, it will take time to rebuild your credit. The plus side is once you file and begin paying your bills, that score will continue to improve.
Bankruptcy isn’t for everyone. But if you are facing debts you cannot pay, The Jones Law Firm can help you navigate the bankruptcy process during this trying time.

COVID-19 & Bankruptcy: The Jones Law Firm

If you live in the Columbus, Ohio region and are considering bankruptcy for the financial hardships COVID-19 has caused, you need The Jones Law Firm. Contact bankruptcy attorney Michael Ryan Jones today.
Categories: General Bankruptcy