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Is COVID-Induced Debt Driving You to Bankruptcy?

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It’s not fair to say that the viral pandemic caused all the current and often devastating debt problems in the US—but it definitely sent millions of hardworking individuals on an unfortunate and unexpected downswing. As COVID-19 persists stronger than ever, few of us could have imagined the length of time we would have to worry about serious health issues, shutdowns and lockdowns, and unemployment. Fears regarding money problems and the potential need to file for bankruptcy quickly became valid nationwide.

Previous to worries over coronavirus, far too many adults were living paycheck to paycheck; now though, recent news cites statistics showing that 63% are doing so, along with going further intdebt. And while 44% say they were already under financial duress before the pandemic, the situation has grown dire for many—especially as unemployment benefits decrease, and debt collection agencies are back on track for more aggressive activity to see debts satisfied. Over half say they are out of savings.

Even more alarming, eight out of ten people polled say that they could not cover a $500 emergency. Deferments on student loans and moratoriums are due to end soon too, meaning added stress for Americans within the next couple of months unless there are further extensions. If you are beginning to run on empty everywhere from the checking account to the savings account to the credit cards, filing for bankruptcy may seem like the only route in the midst of pressing basic expenses, along with credit card debt, home and auto payments, and so on.

Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. There may still be the potential for negotiation. If so—and if you can come up with the cash for a one-time lump sum payment—your current worries over outstanding debts could quickly be resolved without the complications of filing for bankruptcy. While bankruptcy can be a great financial tool when necessary, it should be viewed as a last resort.

Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at info@debtorprotectors.com.

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