Most Americans vividly remember living through the Great Recession and housing crisis that began 2008. The economy collapsed, millions lost their jobs and homes, and rates of both business and personal bankruptcies skyrocketed.
The economy eventually recovered, and many of us were comforted by the idea that events like this were rare. Surely, they wouldn’t happen again during our lifetime. Now, just over a decade later, it is happening again. The cause may be different, but the outcomes could be just as bad.
According to news reports, about 420 U.S. companies have gone bankrupt as of August 9, 2020. We haven’t seen numbers like that since 2010, and this year isn’t even over. In many cases, the businesses going bankrupt were not small. They included national chains with employees around the country.
The news of business bankruptcy is bad enough, but it is even worse when you consider the chain reaction it could have for personal bankruptcies. Sudden job loss is a common financial stressor that leads people to file bankruptcy. And between the widespread shutdown of most businesses earlier this year and the subsequent business bankruptcies, it seems likely that personal filings could soon be breaking previous records.
If you are struggling with job loss and financial insecurity right now, please know that you are not alone. There are millions of Americans feeling the same pain. Please also know that if you cannot manage to get out of debt on your own, there are options available, including bankruptcy. Contrary to what you may have heard in the past, bankruptcy isn’t a sign of failure or irresponsibility. It is a tool meant to help people facing overwhelming debt, often caused by circumstances beyond their control.
If you’d like to learn more about your various debt relief options, please contact our office to speak to an experienced bankruptcy attorney today.