What You Need to Know About COVID and Bankruptcy
The last couple of years have impacted nearly everyone in the world, and in the United States, COVID-19 has led millions of Americans into higher debts of all kinds. As a Memphis bankruptcy lawyer for COVID-related debt, I want to let you know how bankruptcy could help you if the pandemic has left you financially overwhelmed.
Debt on the Rise During COVID-19
According to the Congressional Research Service, about half of all US households lost income due to the pandemic. Mortgage debt increased, people lost their savings, and 42% of Americans increased their credit card debt.
Not to mention, millions of Americans also racked up significant medical debt from COVID. Ambulance rides, hospital stays, tests, and dozens of other medical expenses can become astronomical debts in just seconds.
For a while, many people used government programs to get by. They could put certain loan payments on hold or use stimulus money to pay down credit card debt. Now, you may be noticing those programs are no longer an option. And as we try to build a “new normal” as best we can, the debt doesn’t go away.
Foreclosure and Repossession from COVID-19
As millions of Americans returned to work and school in-person, so did the creditors. And now that federal protections are expiring, people have found themselves in desperate situations.
Evictions are on the rise. Foreclosures are soaring. Car repossessions and wage garnishment are a constant threat. Because the housing market is so hot, the banks want to take back your home more than ever. And the same goes with used cars—the market is skyrocketing, so the creditors want your car more than ever.
This situation is causing unbearable stress for millions of people. Maybe you can relate. Maybe after these years of panic and illness, exhausting debates about mandates, and work and educational uncertainty, you find yourself dealing with horrible financial worries, too. And maybe it feels like the last straw—like there’s just no more strength left to get your finances in order.
How Bankruptcy Can Help with COVID Debt
This is where bankruptcy can help. Bankruptcy laws were created by the government to give relief to people who can no longer afford to pay back their debt. It’s an extremely useful tool that elites use all the time for their businesses — even Presidents have taken advantage! So what can it do for you?
Bankruptcy clears your debts and gives you a clean slate. Depending on your situation, you could file Chapter 7 (which discharges all your debts at once and lets you start afresh from scratch) or Chapter 13 (which sets up a personalized payment plan based on your ability to pay and helps you get out of debt for good). Both options are extremely powerful, and no doubt a lot of people will take advantage of them in the coming months.
All those debts you’ve accrued during COVID can be included in a bankruptcy. Whether you’ve struggled to pay your mortgage, car note, credit card bills, medical debt, or all of the above and then some, bankruptcy can work with your unique needs and make your financial life healthy again.
Speak with a Memphis Bankruptcy Lawyer for COVID-19 Debts
As you can tell, if you’re struggling with debt from the pandemic, you’re not alone. There’s no shame in it, and there’s no reason to let it destroy your mental health any further.
There’s no better time to get a fresh start. Our experienced bankruptcy attorneys can help you get out of debts you accrued during COVID and move forward with peace of mind. And if you’re unsure whether bankruptcy is the right choice for you, don’t worry: the conversation is totally free, no strings attached.
Just contact us below to speak with a lawyer at no cost or give us a call at 901-327-2100. We’re excited to help.