How Coronavirus May Impact the Bankruptcy Field
With millions of Americans practicing some level of quarantine, politicians are scrambling with how to deal with the economic fallout caused by the spread of COVID-19. The top reason people file for bankruptcy in Arizona is because of medical issues, and bankruptcy filings went up 33% during the financial crisis in 2008. It is reasonable to expect a slight increase in bankruptcy filings as a result of the current crisis.
As of now, it is unclear how much people infected with the coronavirus will have to pay. Out of pocket monies for testing and treatment could be steep. A medical bill of a few thousand coupled with a few weeks out of work is enough to send the average American to the bankruptcy courts. Thus, Lawmakers are considering giving many Americans $1,000. These monies will help deal with the costs of this crisis. However, it likely wouldn’t be enough to help someone deeply affected by the spread of coronavirus.
Coronavirus and Bankruptcy Numbers Increase in Arizona
As the number of confirmed cases of coronavirus in Arizona increase daily. The latest numbers still have the infected in the mid double digits. However, the total number of Arizonans impacted is a far greater number. Between the State of Emergency declared by both Phoenix and Mesa and the numerous loss of jobs, the reach of this virus is massive. Soon the words Coronavirus and Bankruptcy could go hand in hand as many citizens will find themselves in financial peril.
The spread of coronavirus will have a wider impact than just those infected with the virus. As more and more areas are placed under emergency status, more people are staying home, which means they aren’t out spending money at businesses. Employees of these businesses are likely to have their hours cut as the need for staffing decreases. Business owners and those working in heavily affected industries, such as restaurants and tourism, can expect decreases in income in the coming months.
Although interest rates are being lowered to help citizens make due in this time of need, many will likely still be unable to pay back a loan no matter the interest rate. Additionally, it is unsure how much longer the spread of COVID-19 will be in emergency status. Also in question, the depth of the impact it will have on the economy. However, it can be sure that due to the global nature of the crisis, people from many different areas and industries will be affected. Citizens of Arizona included.
Bankruptcy Filings in Phoenix Metro to Go Up with COVID 19
In Phoenix, Mesa, Tucson, and throughout Arizona, bankruptcy filings (both chapter 7 and chapter 13) will naturally go up after times of financial crisis. However, it is unsure how much the amount of filings will go up. Thus, this number may be mitigated by whatever measures lawmakers put into effect to stifle a financial crisis. Either way, debt settlement and bankruptcy firms need to be prepared to handle an incoming of new clients.
If the COVID 19 pandemic is causing you undo financial stress and hardship, contact our Arizona law office for assistance. Also, if the financial stress of coronavirus and bankruptcy is weighing heavily on you, please know there are options. Additionally, we help people with debt relief throughout Arizona. Including the counties of Maricopa, Pima, and Pinal. Plus, the cities of: Phoenix, Tucson, Mesa, Gilbert, Tempe, Chandler, Scottsdale, Glendale, Apache Junction, Peoria, Goodyear, Avondale, and Laveen. We look forward to assisting you through this coronavirus pandemic.
1731 West Baseline Rd., Suite #100
Mesa, AZ 85202
Office: (480) 448-9800
20325 N 51st Avenue Suite #134, Building 5
Glendale, AZ 85308
Office: (602) 509-0955
2 East Congress St., Suite #900-6A
Tucson, AZ 85701
Office: (520) 441-1450
12725 W. Indian School Rd., Ste E, #101
Avondale, AZ 85392
Office: (623) 469-6603