Before the massive shutdowns, many workers made enough to live on but not enough to save, leaving Americans in a particularly precarious financial predicament when Covid-19 shut the doors of many businesses and leaving many workers now unemployed.
Roughly half of Illinois households have no emergency savings – no one to borrow from, nothing of value to sell, and no rainy day funds to cover what is now over 6 weeks of shutdowns across the nation.
Even with expanded unemployment benefits and other forms of government assistance, many of the 17 million plus Americans that lost their jobs in recent weeks will struggle to make ends meet without the benefit of savings.
As the shutdown drags on, millions of Americans are skipping their credit-card payments or loans for lack of funds. Although some issuers of credit cards have paused payments, waived fees or stopped interest for the short term, for many, the payment wiggle room still may not be enough.
Americans were already over extended when Covid-19 appeared. For many the resulting economic disruption represents the proverbial straw that broke the camel’s back – a situation that bankruptcy protection is actually designed for.
Chapter 7 Bankruptcy Relief | Chapter 13 Repayment Plan
Consumers who have few assets and high unsecured debt such as credit card or medical debt who are struggling financially may be eligible to file chapter 7 bankruptcy to get a fresh start. For those who have regular income and a number of assets, who are nonetheless overwhelmed financially because of a reduction in pay or a temporary job loss or business closure during Covid- 19, a Chapter 13 repayment plan may be an option get back on their feet.
Contact an Experienced Illinois Bankruptcy Attorney for Help
If you have been hit hard by Covid-19 and you are in a difficult financial situation, contact Peoria bankruptcy attorney Charles E. Covey at 309-674-8125 to decide if bankruptcy is a good strategy for your financial situation. Bankruptcy is your legal right and in these unprecedented economic times, bankruptcy protection may offer you the help you need to get through this difficult time.