Bankruptcy Attorneys in Minneapolis, St. Paul, Brooklyn Park & Blaine
Many Americans are facing financial difficulties which could not have been predicted and bankruptcies are expected to increase. Who would had anticipated the mass closings we are facing in order to protect our health, and the very lives of those with respiratory difficulties or compromised immune systems.
Nevertheless we must face the financial crisis created by the highest levels of unemployment in years. Resources for relief programs are limited. Some laid off workers may not receive enough help from acts of congress or state government. Chapter 7 bankruptcy may be necessary for many. Many question if their $1,200 stimulus checks are protected.
Walker and Walker & Walker Law Offices PLCC can help those facing difficulty keeping up with creditor demands to decide if chapter 7 is the best answer for their situation. PLLC is a bankruptcy law firm based in Minnesota. We have offices in Minneapolis, Brooklyn Park, St. Paul and Blaine.
The Scope of Unemployment Due to the COVID-19 Crisis
“It’s a wreck”, says a recent New York Times post, of the unprecedented surge in unemployment filings due to the coronavirus crisis. A few short weeks ago, only 200,000 workers filed for unemployment. In the half century since the government has been keeping track, the one week record was only 695,000, back in 1982.
The recent week when mass closings of restaurants and non-essential business was ordered by some government entities, over three million new claims were filed. Even optimistic predictions say at least a million more jobs may be lost, and many of the closed businesses may never reopen, if the shutdown lasts as long as some say is necessary. The scope of this situation could rival that of the Great Depression.
More Chapter 7 Bankruptcies May Be a Necessary Side Effect
Another statistic that may rise right along with new filings for unemployment and the list of closed businesses is the number of Chapter 7 bankruptcy filings. Why will Chapter 7, rather than Chapter 13, likely be the most common choice for many unable to pay debts due to unavoidable unemployment during the COVID-19 crisis?
Chapter 7 offers the possibility of a complete fresh start; the chance to wipe one’s slate clean and begin building a new record of credit in only a couple of months. When filing chapter 7, all accrued debt can be eliminated.
We all hope that unemployment benefits will be enough to tide workers over until the crisis recedes and people can return to their jobs or find new ones as the economy rebuilds. Preventive measures may be enough to prevent many of us from being exposed to the COVID-19 virus. But considering the Center for Disease Control’s predictions and the difficulty of creating a perfect, well-funded safety net which can be easily accessed, Chapter 7 bankruptcy may be the best option for citizens who become seriously ill, already have a large amount of amassed debt, or whose creditors are not willing to work with them.
Everyone considering Chapter 7 should first familiarize themselves with the requirements and the steps for filing. Next they must consult a knowledgeable bankruptcy law firm for guidance concerning their particular case. Chapter 7 isn’t for everyone. Sometimes Chapter 13 or another solution may better suited to the situation.
Bankruptcy isn’t a process anyone wishes to undertake. But if administered by a lawyer who thoroughly understands the process and who is determined to act in the client’s best interests, it can be a lifesaving option for those who face insurmountable debts.
Contact Walker & Walker PLLC For A Free Consultation Today
Walker & Walker PLLC is a talented legal firm specializing in bankruptcy law. We have offices in Minneapolis, Brooklyn Park, St. Paul and Blaine. Contact us We are here to help during this crisis, and have the ability to work with clients and file cases remotely.
