Floridians and people across the United States are facing significant uncertainty about their finances because of the current health crisis. This has placed many businesses in turmoil, left people out of work and called into question how difficult the circumstances will get. Statistically, that has led to an unusual situation in which bankruptcy filings have hit the lowest rate since 2006, but experts suggest that may change at the end of the year. People confronting financial hardship should be cognizant of how bankruptcy might help them. Even those who are currently financially stable might want to think about how bankruptcy could be a reasonable solution to assist them.
Bankruptcies on the decline
The numbers show that there were slightly more than 34,400 bankruptcy filings in November. There was a major disparity between personal bankruptcy filings and business bankruptcies. Compared with 2019, there was a 40% increase in Chapter 11 cases. For Chapter 13 bankruptcies in which people can pay their debts over a three or five-year period and retain properties like a home or a car, the numbers were down 45%. Chapter 7 liquidations were down by 21%.
A main reason for the lack of filings is believed to be due to assistance from the government in the form of moratoriums on evictions and other financial benefits. With the pandemic still resulting in uncertainty, the financial markets have seen positive improvements because of the vaccines that may be available soon. The absence of bankruptcy filings is believed to be due more to uncertainty than stability. At the end of 2020, the moratorium on evictions and foreclosures could end and force people to think about bankruptcy protection.
Financial challenges can be addressed through bankruptcy
People who are confronted with financial issues for any reason should know how bankruptcy might be able to help. This is true if the person has suffered job loss, has massive medical bills, has accrued enormous credit card debt or is dealing with other problems that have led to financial challenges. Bankruptcy can help a business reorganize and benefit and individual to regain their financial footing and move forward. To understand all the options, it is wise to consult with an experienced legal professional who understands all aspects of the bankruptcy process. Calling for advice and guidance is the first step.