Across the nation, both individuals and families are struggling to make ends meet in the midst of the COVID-19 pandemic. With many frequently battling to keep debt under control during difficult times, it’s no surprise that debt claims are some of the most common among a rising number of civil cases across the country. Sadly, the pandemic is likely to result in even more cases by putting people further behind on mortgages and payments.
The Growing Debt Problem
The Pew Charitable Trusts recently released a report that states nine out of the twelve states polled show debt claims are their number one reason for civil cases. Within two decades, debt claims doubled as more people grew behind on their payments and bills.
How COVID-19 Makes the Problem Worse
During the current pandemic, people across the United States are struggling daily to deal with the ever-mounting bills. While many people find themselves jobless or dealing with reduced hours, debtors still seek to collect their debts. It is heartbreaking to think that some families are forced to choose between feeding their children and paying their monthly bills, but the pandemic has left many financially vulnerable.
Getting Further Behind
While it is understandable that people have to pay for their basic needs, such as food and shelter, before making other payments – debtors are not always so understanding. Some creditors, like banks, have tried to offer relief through forbearance, but others offer no such option. Not only do they continue to tack on late fees and increased interest rates, but many creditors are now collecting their funds by taking it directly from individuals’ stimulus checks. While the seized stimulus payment may cover some debts, it will put families further behind as they won’t be able to access the funds for essentials. Ultimately, the potential seizure of the stimulus payments may send individuals into a debt situation that will snowball rapidly.
Getting Debt Under Control
If you are battling debt and struggling to keep your bills paid throughout the COVID-19 pandemic, you can’t rely on the stimulus check alone to solve your problems. Rather than allowing your situation to grow worse, you can take control of your finances and secure your future through bankruptcy. Depending on your situation, you may be able to file a Chapter 13 bankruptcy, which will provide you with manageable payments that can be met on your reduced income, or a Chapter 7 bankruptcy that will eliminate the debt completely.
The current pandemic has many people feeling like their lives are out of control and their finances are going down the drain. Thankfully, with the help of bankruptcy, you can regain your financial footing and start getting your family headed back toward success.
Contact us today to learn more about bankruptcy and how we can help you recover your finances during this difficult time.
The attorneys at Sadek Bankruptcy Law Offices have handled thousands of Bankruptcy cases in Philadelphia and the surrounding counties of Montgomery, Delaware, Bucks, and Chester. We are also licensed in the State of New Jersey. Contact us today to schedule your free consultation at 215-545-0008.