CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

COVID-19 and Debt – 5 Ways the Pandemic is Leading More People to Bankruptcy

COVID-19 Debt Pandemic Leading To Bankruptcy Tampa, Florida.

COVID-19 Debt

If you’re considering bankruptcy you aren’t alone. The last few months of 2020 have brought a great deal of uncertainty, most of it connected to the pandemic. COVID-19 debt is accumulating and more and more people are being affected.

What are five ways the pandemic is driving people to bankruptcy?

1. Loss of Income

Millions of Americans have filed for unemployment since the pandemic began in mid-March. There have been more job losses during this time than there were throughout the last two years total. Complete loss or reduction of income is a serious concern for many and for some, the change has caused serious financial strain. Many people are struggling emotionally to cope with their job loss and others are dealing with the worst financial stress of their lives. If loss of income has pushed you off the financial cliff, bankruptcy might offer relief.

2. Extending Job Searches

It’s taking longer than ever to find a job if you are unemployed, which means more people are forced to accumulate COVID-19 debt. There’s no denying a job search is always stressful, but job hunters are finding the process excruciating during the pandemic. Competition in the job market is bigger than it’s been in a long time and many companies aren’t even responding to resumes unless they intend to move forward with the interview process.

The lack of in-person interviewing is also weighing heavily on the job search. Not meeting face-to-face has increased the length of time it takes for a company to make a hiring decision. Some job hunters have reported half a dozen interviews or more before learning one way or the other if they’re getting an official offer.

As the days and weeks pass by without a solid lead on employment, many people are turning to bankruptcy as a way to deal with their growing financial burdens. If you’d like to know more about coping with a job search during this stressful time, check out this information from Glass Door.

3. Using Credit to Pay for Essentials

It’s no surprise the changes in earnings the pandemic has brought has led to more people turning to credit cards to help with their expenses. When there is no cash available to pay for food and other essential items, plastic is the only option for many. If you must use credit to cover expenses during this time, consider applying for a zero-interest card that will keep your debt as low as possible. But if you’ve already found yourself in deep with credit or made a bad situation worse since COVID-19 hit, bankruptcy could help you with your situation.

4. Medical Costs

Medical costs related to COVID-19 vary a great deal. Some people stricken with the illness haven’t paid a dime because their symptoms are so mild. Others have been forced to spend days or weeks in the hospital receiving care. Those who have lost loved ones to the illness are faced with medical costs and funeral expenses.

There’s no denying the pandemic has only worsened the issues that already existed with the cost of medical care and like many who are dealing with significant COVID-19 debt, bankruptcy offers a path out of a dire situation.

5. Triggering Major Life Changes

Many people have found themselves reassessing their situation overall and making significant life changes during the outbreak.

Many people have changed their home selling and buying plans in some way due to the pandemic. Some sped up their timeline, while others have delayed their plans or are now searching for something less expensive than they originally intended to buy. Many renters have realized their situation is less-than-ideal and people from all walks of life have decided to make drastic changes in light of what they’ve had to endure since the spring.

Having to drastically alter plans or do things you hadn’t intended to do six months or a year ago has created a significant amount of COVID-19 debt for many American families. You can read more about how the pandemic has affected home sales and moving here.

A Bankruptcy Lawyer Can Help You with COVID-19 Debt

No matter what life changes COVID-19 has brought your way, bankruptcy might be an option if you are struggling financially. It’s not the answer for everyone, but it does offer a fresh start when there are no other solutions in sight.

For more information or to speak to someone about dealing with COVID-19 debt, contact us at the Law Office of Robert M. Geller at 813-254-5696.

Archive

Tampa Bankruptcy Law Blog

Signs That You May Need to File Bankruptcy [Infographic]

What are the Signs You Might Need to File for Bankruptcy? Not everyone who struggles financially has to file for...
Read More

What You Should Know about Filing for Bankruptcy Multiple Times

Filing for Bankruptcy Multiple Times As hard as it might be for someone who has never considered filing to believe,...
Read More

Wondering How to Remain Eligible for Financial Aid? Here’s What You Should Know about Getting a Loan to Help Your Child Pay for College After Filing for Bankruptcy

How to Remain Eligible for Financial Aid Many parents want to help their children pay for college. But how do...
Read More

What Seniors Need to Know about Bankruptcy

Bankruptcy for Seniors Facing bankruptcy at any age is tough, but bankruptcy for seniors is especially difficult. When you’re relying...
Read More

Should We Expect a Huge Rise in Bankruptcies Due to COVID-19 and Will You Be a Part of It?

COVID-19 News and What's Ahead for the New Year The latest COVID-19 news predicts that there will be a rash...
Read More

Why Does Bankruptcy Take So Long? How a Bankruptcy Law Firm Helps Make the Process as Efficient as Possible

Bankruptcy Law Firm Have you begun the bankruptcy process and you’re wondering why it’s taking so long? You aren’t the...
Read More

When Is It Too Late to Stop Foreclosure? Here’s What You Should Know If You Are Behind On Your Mortgage

When Is It Too Late to Stop Foreclosure? When is it too late to stop foreclosure and is bankruptcy your...
Read More

How to Avoid Being a Victim of Scam Calls for Student Loans

Scam Calls for Student Loans Student loans are one of the biggest burdens faced by college attendees. Even students who...
Read More

Can Medical Bills Be Included in a Bankruptcy? Here’s What You Need to Know

Can Medical Bills Be Included in a Bankruptcy? Medical problems are stressful enough without facing a significant debt burden after...
Read More

I’m Unemployed. Can I Still File for Bankruptcy?

Unemployed Bankruptcy Being in debt is bad enough, but if you’ve lost your job recently or accumulated debt because of...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo comodo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions