We’re here to help debtors get a financial reset
Five years ago, at the beginning of the COVID-19 pandemic, there was a surge of bankruptcy inquiries, just before stimulus checks hit Americans’ bank accounts.
Now, as Business Wire reported, we’re seeing the biggest surge in inquiries since the pandemic—and with more potential economic pain on the horizon, we may be looking at a summer wave of bankruptcy filings.
With so much uncertainty in both the broader economy and individual household finances, it’s important to know your options. If you’re looking at overwhelming debt, it’s a good idea to talk to a bankruptcy lawyer about your rights.
Tariff-driven price increases and financial stress may force more families into bankruptcy
Two years ago, we wrote about how inflation may be forcing some debtors into bankruptcy. While inflation, historically, has not been a major cause of bankruptcy, anything that increases the cost of living can make a huge difference to people who are already struggling with debt.
If tariff-driven price increases materialize in the next few months, the increase in the cost of living could leave thousands of families unable to keep up with their credit cards and other personal debts.
The state of the job market may also be driving an increase in bankruptcy filings. Loss of income is a significant driver of bankruptcy, and prolonged unemployment makes the situation even worse; some families may have reserves to get through a few months, but beyond that, it’s very difficult to keep up with debt repayment.
Many people are stretched thin financially
According to Business Wire, consumer financial strain has been high since last summer, and although it had leveled off somewhat in the first quarter of this year, many consumers are still stretched thin financially. Additional financial stress in the next few months may be enough to send many families into bankruptcy.
The point of all this is to say that if you are unable to keep up with your debt, you are far from alone. Many hardworking people are in impossible situations because of circumstances beyond their control. Bankruptcy provides a way out.
How filing for bankruptcy provides a financial reset
If you are dealing with overwhelming debt, falling behind, and have debt collectors breathing down your neck, filing for bankruptcy may be the financial reset you need. As soon as you file, the court will issue an “automatic stay” that will put a stop to all those collection activities.
If you file for Chapter 7 bankruptcy, you can get most types of debts discharged (eliminated) when your bankruptcy is finalized, typically within four to six months.
Chapter 13 bankruptcy reorganizes your debts into a single repayment plan with an affordable monthly payment; after three to five years of payments, whatever is left will be discharged.
Which option is right for you depends on your income, the types of debt you have, and your overall financial situation.
Talk to a South Carolina bankruptcy lawyer today
Bankruptcy isn’t failure—it’s a reset. With debt pressures rising again across the country, more people are realizing it’s better to take action than drown in financial stress.
The first step is to get advice from an experienced bankruptcy lawyer who can explain your options and guide you through the process.
Is it time for a fresh start? Give us a call or contact us online for a free consultation with Benjamin R. Matthews and Associates, LLC.
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