We are living in unprecedented times. In light of the most recent unemployment figures, it’s easy to wish that this were all a dream. But the fact is that the unimaginable has become reality. Many Americans find themselves facing financial issues they cannot will away. Still, there’s always hope, even in the darkest hours, and as a Memphis bankruptcy lawyer I want to help you however I can.
Four months after the coronavirus pandemic first took our country by storm, our ruptured economy shows no signs of improvement. Last week, another 1.3 million people filed for traditional unemployment for the first time. On top of that, an additional 928,500 million people in 47 states field for pandemic unemployment assistance for the first time.
Experts do not expect the tide to settle soon.
“Overall, filings remain high and are declining at a stubbornly slow pace,” Rubeela Farooqi, chief US economist for High Frequency Economics, told CNN Business. “The pace could slow even further or reverse in coming weeks in response to a surge in virus cases and related closures of businesses.”
“The rising UI claims add to the evidence that the recovery may be stalling and come at a critical juncture in the crisis as Covid-19 cases rise around the country and expanded unemployment benefits for Americans are set to expire,” Glassdoor Senior Economist Daniel Zhao said. “The risk of a surprise drop in employment in July is rising, pointing to a roller coaster recovery as the labor market starts to turn down again.”
Bankruptcy is a lifeline during tough times.
If you’re considering filing for bankruptcy during a period of unemployment, you’re not alone. People turn to bankruptcy when they have significant debt. It’s understandable that financial struggles follow the loss of a job.
There are different types of bankruptcy for different situations. Here’s what to know about each.
A Chapter 7 bankruptcy eliminates unsecured debts, such as credit card debt and medical bills. This is a great option when you’re unemployed. You won’t have to worry about making payments toward your debts.
On the other hand, a Chapter 13 bankruptcy is a good option for people who are behind on their mortgage or car payments. It consolidates past-due payments into an affordable repayment plan. Because a Chapter 13 involves ongoing payments, some kind of income is required. Your unemployment benefits can potentially cover it. An experienced Memphis bankruptcy lawyer can discuss your options with you.
Speak with a Memphis bankruptcy lawyer today.
We are known for our compassion and our results. Our lawyers have helped thousands of families navigate challenging times and come out on the other side.
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.