As the tide of the coronavirus pandemic plunged the nation into an unprecedented period of uncertainty, the economy stalled.
By June 8, 2020, the National Bureau of Economic Research published its official findings that pointed to February 2020 as “the end of the expansion that began in June 2009 and the beginning of a recession.”
But what does that mean for you? And how can you find financial freedom and hope in such an unstable economy, particularly if the COVID-19 closures wreaked havoc on your personal budget or employment?
How COVID-19 Has Impacted The Nationwide Economic Landscape
This recent period of expansion following the Great Recession through to 2020 marked the longest U.S. economic expansion in our nation’s history.
However, following this final peak in February, unemployment began to rise as a result of nationwide coronavirus lockdowns, effectively sparking business closures, layoffs, and slashes in revenue across all industries.
Thus, the U.S. Bureau of Labor Statistics reported that the nation’s unemployment rate rose to a record high by April 2020: A startling total of approximately 14.7 percent.
Thankfully, as states reopen their economies and the initial wave of infections begins to pass, this worrisome rate is expected to drop on a month-by-month basis.
What This Might Mean For You
If you are one of the 20.5 million people laid off between the months of February and May, you’ve undoubtedly found yourself second-guessing your budget and scrambling to ensure you have everything you need to pay your bills each month.
Of course, even if you were not struck by layoffs, you still may have found yourself wading in the unexpected waters of a temporary furlough, thereby negatively impacting your monthly income without eliminating it entirely. Otherwise, you may have unwillingly taken on more debt in an effort to make ends meet and keep food on the table.
Fortunately, many government lenders, a well as private lenders and landlords, have responded with a modicum of flexibility when it comes to charges or hard payment deadlines. However, while unemployment benefits and a temporary hold in evictions may have provided you with a safety net, it goes without saying that you cannot hit “pause” on your overall expenses just because your employment situation fell into limbo.
Finding Hope With Bankruptcy
When your finances become the victim of unexpected emergencies or, in this case, the COVID-19 pandemic, it can be easy to fall into the trap of high-interest payday loans, maxed out credit cards, second mortgages, or even the temptation to cash in your retirement in order to stay afloat.
But before you leap unknowingly into the arms of predatory lenders, we want you to consider bankruptcy as an option to wipe the slate clean.
Bankruptcy is not only a source of hope in terms of financial recovery — it’s also an avenue for finding relief, as filing will not only provide you with a fresh start, but it will put an end to the harassment of credit collectors, as well as protect your assets and end wage garnishment.
So, are you ready to get to a brighter and more hopeful future through the benefits of bankruptcy? Then it’s time to reach out to Dolaghan Law. To learn more about how filing can benefit you, contact Dolaghan Law today by calling (904) 354-4935! You are not alone.