While the health concerns of the Coronavirus pandemic are affecting people of all ages, most patients have minor symptoms and can recover at home without hospitalization. There’s no doubt that managing the public health threat is a priority. At the same time, there is also a wide-spread concern right now about the economic toll and long-term financial consequences for people across the nation – and throughout the world.
The stock markets are on a wild rollercoaster, “Stay Home” orders have closed the doors of small businesses and large corporations, and millions of people are suddenly filing for unemployment due to a loss of income. How has your family been affected by these economic changes?
How Will Coronavirus Affect Personal Finances?
If you have a job that allows you to work from home, then your income might be ok for now. Additionally, some employers have offered to continue paying employees, even while the business is closed.
But many people are experiencing a reduction or even complete loss of income:
· Employees aren’t being paid while the business is closed.
· Payments are deferred while the business is closed.
· Businesses are experiencing decreased revenues.
· Who knows the long-term economic effect that will be experienced?
The people who will be most affected by the economic downturn are those who have been living paycheck to paycheck. When the income stops coming in, it becomes impossible to keep up with debt payments due to the gap income. These circumstances also increase the likelihood of higher debt balances as families use credit cards to pay for life necessities, such as food and utilities.
Managing Debts with Bankruptcy
Can you see that you are on the path to financial disaster because of a loss of income? If you can’t keep up with your payments, then it might be time to talk to a bankruptcy lawyer about your options. These debt balances can be managed through bankruptcy, helping you find relief from the debts that are owed.
Bankruptcy should be considered on a case-by-case basis, which is why it is smart to talk to an experienced attorney about your options. Our team at Miles & Hatcher, LLP is here to answer your questions and assist in designing the right legal plan for your individual situation. Call for a free consultation: (909) 481-4080.