After months of lock-down due to COVID-19, both businesses and individuals are suffering extreme economic stress. Nonessential shutdowns and public fear of virus infection have affected personal paychecks and shuttered businesses of all sizes, creating the domino effect felt by most Americans. For those whose business failed, or laid off from work, people struggle to pay basic necessities, so debts are piling up (including rent or mortgage payments). Many people are losing everything and even face homelessness, with no relief in sight.
The number of personal (and business) bankruptcies filed this year will set records. We are already seeing record numbers of small business closures, numerous industries struggling and organizations of all sizes struggling to meet their financial obligations. These closures and their ripple effects mean a growing unemployed population, or folks taking positions and getting paid much less than before the COVID hit us all.
That there are more bankruptcies being filed shows that it is one remedy, which may help save people from losing “Everything.” If one has lower income, bankruptcy can wipe all debts away, so that when things improve, one can start fresh with no debt dragging them down and drowning them.
Bankruptcy is a great solution for many people and small businesses to reorganize or start fresh. But, with the rising case volumes around the country, some bankruptcy courts are bogging down under the stress of the COVID pandemic. The rise in bankruptcy cases could mean longer waiting periods to file and difficulty finding an attorney. Add in that the traditional model for finding an attorney requires venturing into public, going to an office, and risking one’s personal health!
“Bankruptcy attorneys are seeing cases that are the result of COVID-19 totally blindsiding families,” says attorney John Compton of Compton Law Firm, LLC, a South Carolina law firm focusing on bankruptcy and asset protection. “COVID may not have impacted their health, but its impact on the economy created a temporary financial hardship for many. Bankruptcy may be their best option, and they should seek a lawyer with great experience, to file quickly and avoid unnecessary weeks of delay.” Using their app and video conferencing, Compton Law Firm’s clients receive virtual consultations, complete bankruptcy questionnaires, and electronically file documents. “Now that the courts are also offering virtual services, my clients can save time and complete the entire process online — without having to go to an office or court in-person.”
Depending on your particular financial situation, one of several bankruptcy types may apply, whereby you can seek payment plans or potentially discharge certain unsecured debts, including personal loans and credit cards. Depending on the Chapter 7 or Chapter 13 bankruptcy, the process could take months to years to complete, respectively. Know your options before you decide to file for bankruptcy.
Businesses, themselves, have bankruptcy options too, especially small sole-proprietorships. In fact, though COVID has destroyed many small businesses, Bankruptcy provides multiple options for relief, and NOT solely under Chapter 11, which most people think is only for BIG BUSINESS. Small businesses actually have that option too, in addition to Chapter 7. Farmers can reorganize under Chapter 12. And, if there is enough personal debt on a person’s plate – business debts (depending on how they were incurred) may be dischargeable in a personal bankruptcy. On the other hand, the Business owner can also look at ways to file both personally and as a business, but these situations require an experienced Bankruptcy lawyer, to see how the debts and assets stack up, and which strategy makes the most sense, for that individual situation.
“A resurgence of COVID-19 could explode at any time and bring more shutdowns or stay-at-home orders, or affect us in different ways in the near future. Those struggling to manage their finances would be smart to cut spending and consider options such as bankruptcy to protect their assets while they regain their footing.” Most importantly, being able to access quality legal advice without roaming around in public, especially if a person is at higher risk, Compton Law Firm is set up to serve you, from the safety of your home. “I care about my clients’ physical health and am inspired to give them the best legal service possible, with the utmost convenience, privacy and safety.”
For more information about Bankruptcy relief, visit Compton Law Firm at https://www.comptonlawfirm.com/bankruptcy.