2020 will be marked as the year of the COVID-19 (coronavirus) outbreak. With the pandemic has come business closures and Shelter in Place orders throughout the country and the world. While we are all facing this strange time together, some households in the United States are bound to feel the financial burden of quarantine and closures more dramatically.
While the economy feels like it has ground to a halt with the COVID-19 pandemic, financial obligations and transactions are still a reality. Many people are temporarily unable to work at all, and this means some households might have no income coming in for weeks or months. A recent poll from earlier this year indicates the following:
- 41 percent of Americans have savings to cover at least $1,000
- 37 percent stated they would need to use a credit card, seek financial help from family, or take out a personal loan for a $1,000 emergency
- 13 percent would need to significantly reduce other spending to cover the emergency
- 3 percent had no idea how they would cover $1,000 in unexpected costs
While 3 percent might not seem like a lot, that could come out to nearly 10 million people in the U.S. who have no way to keep up with $1,000 in expenses without income. Millions more will likely be racking up credit card debt to stay afloat. For these reasons, once the pandemic is over, Chapter 7 bankruptcy might be the solution for many households that struggled through these closures.
Contact a Chapter 7 Bankruptcy Lawyer in Memphis Today
The Hurst Law Firm, P.A., can help determine whether Chapter 7 bankruptcy is right for you, as well as walk you through every step of the process. Call 901.725.1000 or contact us online to speak with a Memphis bankruptcy attorney.