As businesses begin to open and restrictions are lifting, we are starting to see life return to some form of normalcy. Unfortunately, while the world is starting to feel a little more like the place we once knew, COVID-19 has left our country’s economy in a tragic situation financially. Everyone from big corporate business owners down to individual families are feeling the strain of the current economic crisis. While bankruptcy tends to be a consumer’s last thought as an answer to their debt problems, some studies are now showing that debt relief programs may actually be the saving grace of our nation’s economy.
The Debt Problem
While debt is certainly not the best answer to money issues, it is no secret that almost everyone has acquired some level of debt. From individuals needing financing to purchase homes and vehicles to business owners who take out loans to fund their startups and increase their company outreach, debt is a huge part of what keeps our economy in motion. The pandemic hit the entire nation with such a surprising force that few people were prepared for the financial damage that it would cause. Almost overnight, store owners were forced to shut their doors, thousands of workers were no longer essential, and individuals were unable to pay their regularly coverable expenses. With the decrease in income, loans and debts were put on the backburner, incurring additional fees and putting a strain on families across America.
How Debt Relief Helps the Economy
The government understands that debt relief is one of the best ways to help jumpstart the economy and keep it going – you can see proof of this through the bailouts and programs that are presented to business owners as well as the decision to send out stimulus checks. America has also helped less-developed countries in the past by providing them with debt relief agreements, which helped their own economies catapult. The moment businesses are out and fully open once again, job postings will increase but the acquired consumer debt may be too great for the new jobs to cover. By filing for Chapter 13 or Chapter 7 bankruptcy consumers will be able to either fully get rid of their debt or create a feasible and financially sound plan to pay the debt back. Choosing to get out from under crushing debt will then reinvigorate the economy by allowing more consumers to spend their newly available income – which would have once gone toward loan and debt repayment – and keep moving toward financial freedom.
How Debt Relief Can Help You
Big debt isn’t just a situation for businesses – individuals alone make up $14.15 trillion dollars in household debt across the USA. Credit card debt, student loans, mortgages, and car payments are just a few things that are overwhelming homeowners around the USA. These debts, many of which were already reporting frequently delinquent payments, have grown even more serious with the pandemic. While you may not have the government offer to forgive your debts, you can secure financial freedom through a Chapter 7 or Chapter 13 bankruptcy.
Across the nation and around the globe, the majority of individuals and business owners are finding themselves in a financial crisis following the COVID-19 pandemic. While you may not be able to help the entire world, you can do your part by taking advantage of debt relief options and getting your debt load under control. Contact us to learn more about debt relief solutions and how we can help you.
The attorneys at Sadek and Cooper 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.