Few Americans were prepared for the severity of the coronavirus pandemic. In fact, I think it’s fair to say that few of us were prepared to face a pandemic in the first place. With every new day, the outlook seems more grim. Just as the spread of the disease itself has intensified, so too have the economic pressures. Economists are now predicting a much worse forecast than they were even two weeks ago. As a Memphis bankruptcy lawyer, I know we all need to prepare for that outcome.
There’s always a reason for hope, even in the darkest hour. However, true change requires not only hope, but action as well. Here’s my advice to anyone who is concerned about debt in the midst of this crisis: don’t delay filing for bankruptcy. Now is the time to prevent a full-blown catastrophe.
10 Million Unemployment Claims in Two Weeks
Not all records are cause for celebration. Last week, the total number of people filing new unemployment claims soared past the 6 million mark, according to data from the Department of Labor. That was twice as much as the record set the week before, 3.307 million claims. In contrast, last year at the same time, the weekly total was 211,000.
There’s not a corner of our country untouched by the virus, including right here in Memphis. As of yesterday, at least 2,800 people in Tennessee had tested positive for coronavirus, including more than 580 in Shelby County alone. Numerous schools and businesses across the state have closed.
Now is the Time to Avoid Financial Catastrophe
As a Memphis bankruptcy lawyer, I’ve received lots of inquiries in the past few weeks, as folks have begun to anticipate increasing financial problems. I want to commend everyone who has already found the strength to take action in this challenging time. I also want to encourage those who haven’t to do the same. The sooner we tackle the problem, the sooner we can find the solution.
What You Should Know About the Coronavirus Aid, Relief and Economic Security Act (CARES Act)
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) includes key provisions that expand access to bankruptcy relief for consumers. The bill amends how income is defined in the code for Chapter 7 and Chapter 13 bankruptcy, excluding coronavirus-related payments from the government.
Those are the two primary types of bankruptcy for individuals. An experienced Memphis bankruptcy lawyer can determine which one best serves your needs. Each approach has different advantages. It all depends on your individual circumstances.
A Chapter 7 eliminates all of your dischargeable debt, including credit card debt, medical bills, and more.
A Chapter 13 lumps all of your debt into affordable monthly payments spread out over the course of three to five years.
Either option allows you to create a clean financial slate and start over.
Talk to an Experienced Memphis Bankruptcy Lawyer
We take pride in our compassion. We’ve helped thousands of families navigate challenging times. We’ve watched them ultimately come out on the other side. We can do the same for you.
This is a difficult time, and it does not need to get more difficult. If you’re thinking about filing for bankruptcy, let’s start the conversation today. Fill out our online form or give us a call at (901) 327-2100.