You Aren’t Alone: Bankruptcy Filings Increase as a Result of Economic Turmoil

If you’re facing financial struggles and considering bankruptcy, you aren’t alone. Bankruptcy filings have increased a great deal since the economic turmoil of 2020 began. Experts expect this trend to continue for the foreseeable future.

The debt load is a combination of many factors. Some people have huge amounts of medical debt, in some cases exacerbated by the COVID-19 pandemic. Others are dealing with job loss or reduced wages. High levels of inflation are compounding these issues.

Even some of those whose financial situations haven’t changed much since 2020 are struggling because so many things cost more than they did a year or two ago.

The number of people filing for personal bankruptcy increased approximately 30 percent from the month before in March 2021 – approximately a year into the pandemic. That was the biggest increase there’d been since the initial onset of the pandemic.

Many of the government programs put in place to help people deal with financial issues related to the pandemic have expired. Some failed due to improper implementation or they weren’t what they initially appeared to be.

In some cases, people were told the cost of their COVID-related expenses would be covered only to have those offers later rescinded by their health insurance providers. Some policies were only temporary, providing assistance during the first wave of COVID patients, but haven’t offered much for those affected by the Delta or Omicron variants.

There’s also a concern for what the future holds regarding medical complications from COVID and what that means financially for those affected.

Some see an increase in long-term COVID complications, including a variety of chronic neurological and cardiovascular issues, on the horizon. And there’s currently no plan for dealing with long-term illness aside from turning to Medicaid if you qualify.

The bottom line is many of the people affected by the pandemic slipped through the cracks. The safety nets set up to provide financial protection failed. This has left many with only one option: bankruptcy.

Should You File for Bankruptcy?

How do you know if bankruptcy is the best option for you?

If you’ve been affected financially by the health pandemic, a job loss, inflation, or a combination of these factors, you might be wondering where to turn. Few things make us feel more desperate and alone than financial challenges.

The good news is you aren’t alone.

Bankruptcy lawyers have seen an uptick in filings over the last year or so. It might offer little consolation depending on your circumstances. However, bankruptcy no longer carries with it the stigma it once did.

The fact is many people are dealing with hard times and bankruptcy is a tool available to help them. Nobody should be ashamed of turning to something that was once seen as drastic to deal with the situation millions of Americans find themselves in now.

What Can You Do If You Think Bankruptcy Might Be an Option for You?

If you’re considering bankruptcy and you aren’t sure whether or not to move forwards, it helps to speak to an expert. They can evaluate your financial situation, explain your options, and administer the bankruptcy means test. This test allows you to determine if you qualify for Chapter 7 bankruptcy (debt discharge) or Chapter 13 (debt reorganization).

If you’d like more information or you’re ready to speak to someone about bankruptcy, contact R. Flay Cabiness, II, P.C. at (912) 417-5041 (Brunswick, GA); (912) 809-2141 (Hazlehurst, GA) or; (912) 324-3176 (Jesup, GA) to schedule a consultation.