 Hurricanes have been in the news again recently as Hurricane Sally is wreaking havoc, slowing moving along the gulf coast with damaging winds and heavy flooding expected from the Florida Panhandle through Southeastern Mississippi. The COVID-19 crisis can be viewed as being hurricane-like in its impact, moving slowly along the national landscape causing damage of all kinds. While some recent numbers have been encouraging, many experts are concerned that we may be in the eye of the hurricane...a brief calmness before the second wave of the storm hits. They are concerned that a relaxing of measures leading into seasonal flu season and upcoming fall and winter weather driving people into fewer social distancing options....could result in a spike we are not prepared to handle. Regardless of whether or not their health concerns are accurate, there is no denying the economic impact is certainly about to be felt in a 'second wave' type pattern.  Yesterday, for example, Nashville released figures stating that the crisis has cost the city nearly $3 BILLION in tourist revenue alone. (story here)
Economies all across the nation, across Tennessee, and in every local county and town are being affected by this crisis. The tax revenue impact is ultimately felt by everyone, as governmental services will be affected and ultimately those who need help the most are hurt worst. The effects of the COVID-19 crisis haven't really been felt just yet, and they will be long term in their reach. Smart families are planning their next steps, including debt resolution or bankruptcy choices. If you already feel your financial situation is out of control...contact us for a FREE CONSULTATION for debt resolution and/or bankruptcy at (731) 423-1888. The law office of T. Verner Smith has helped thousands overcome financial problems, and can help you too. Call today!  Since mid-March, when the pandemic started shutting down businesses, over 800,000 Tennesseans filed an unemployment claim over the six months afterward. That equates to one out of every four Tennessee workers who previously held a job in February. While many have gone back to work, in some capacity, Tennessee's unemployment rate is still more than twice the level of last year at this time. Combine that with workers finding their jobs may offer fewer hours, fewer benefits, and fewer opportunities for bonuses or advancement...and you soon realize times are still tough for most folks. In a story last week from WalletHub, Tennessee is among the 10 worst states for job recovery. (story here)  In addition, according to a story from CBS News, income inequality has become decidely worse during the pandemic. Current research shows nearly 40 million Americans are living in poverty, and up to 54 million may not have enough to eat this year. And while more than 29 million are collecting unemployment benefits, during this same time period, the net worth of over 600 billionaires in the U.S. grew by 20%. (story here)
Most families admittedly were already living paycheck to paycheck even before the crisis, and the 'new normal' isn't exactly a rosey picture. The fact remains the vast majority of Tennesseeans were unprepared for this crisis and as bank accounts dwindle, debts continue to mount, and bill collectors are determined to COLLECT...the average family's financial stress will soon become too much to handle. Smart families should be preparing to take legal steps now. If you already feel your financial situation is out of control...contact us for a FREE CONSULTATION for debt resolution and/or bankruptcy at (731) 423-1888. The law office of T. Verner Smith has helped thousands overcome financial problems, and can help you too. Call today!  The Tennessee Department of Health has recently issued new quarantine guidelines, recommending a total of 24 days instead of the previous 14. To quote the document (seen here), "Household contacts must be quarantined for 14 days AFTER the case has completed their 10 day isolation period (whether the case is symptomatic or not)." 'Household contacts' are individuals who share any living spaces with a case. That includes bedrooms, bathrooms, living rooms, kitchens, etc.
So in this scenario....if one of your family members is determined to be COVID-19 POSITIVE, then EVERY family member who shared any room in the home with them should then be isolated for 10 days, then quarantined for an additional 14 days. What would 24 days of missed work do to your finances? Nearly four weeks with no pay? What if you're a typical two-paycheck household and both are missing work for 24 days? Tennessee families just are not prepared for this type of additional blow, after already sustaining previous financial hits from work stoppages, slow downs or business closings. Compound that with the additional financial burden of many families impacted by 'remote schooling' - and the boulders just continue to be piled onto backs of West Tennessee families. How many boulders can your family's shoulders sustain? Smart families are pre-planning their next steps, including debt resolution or bankruptcy choices. If you already feel your financial situation is out of control...contact us for a FREE CONSULTATION for debt resolution and/or bankruptcy at (731) 423-1888. The law office of T. Verner Smith has helped thousands overcome financial problems, and can help you too. Call today!  A new article at bankrate.com states that 67% of parents with young children say 'virtual or remote learning' for school will negatively impact their finances.
With a new school year already underway or about to start for most West Tennessee systems, many are offering (or in some cases REQUIRING) virtual or remote learning. Bankrate.com surveyed over 3,000 adults and found that 67% of those with children aged 5 to 10 say their finances will be impacted in the following ways:
Until now, families have been relying on government stimulus programs, expanded unemployment benefits, personal savings and credit cards to stay afloat. With those options running out, and the additional burden of parents who are unprepared for at-home schooling, many families are feeling the pressure. The handwriting is on the wall, and smart families are pre-planning their next steps, including debt resolution or bankruptcy choices. If you already feel your financial situation is out of control...contact us for a FREE CONSULTATION for debt resolution and/or bankruptcy at (731) 423-1888. The law office of T. Verner Smith has helped thousands overcome financial problems, and can help you too. Call today!  According to a new article (here) from MarketWatch, business bankruptcies are on the way to a 10 year high with over 400 companies having filed so far this year. Some of the well known names include Remington, J.C. Penney, Neiman Marcus, Hertz, 24 Hour Fitness, and Men's Wearhouse.
Categories hit hardest include:
Those business categories are some of the largest service-industry employers in the nation, and is an indicator of the personal bankruptcies that are soon to follow, as businesses have reduced hours, furloughed or fired many of their workforce during this crisis. Until now, families have been relying on government stimulus programs, expanded unemployment benefits, personal savings and credit cards to stay afloat. Those options are soon ending or are running out. The handwriting is on the wall, and smart families are pre-planning their next steps, including debt resolution or bankruptcy choices. If you already feel your financial situation is out of control...contact us for a FREE CONSULTATION for debt resolution and/or bankruptcy at (731) 423-1888. The law office of T. Verner Smith has helped thousands overcome financial problems, and can help you too. Call today!  That extra $600 per week you got for the pandemic crisis...the government may want a piece of that back!
Tax preparers say millions of Americans who received unemployment benefits during this crisis may not know they could owe the IRS for it when they file next year. Jobless benefits are subject to federal income taxes, and workers who are collecting for their first time may not know it. When applying for unemployment benefits, you have the option to have 10% of the payments withheld for federal income taxes. But tax experts said most may not know about the option or how to sign up for it. According to an online article seen here, tax experts say the unemployment benefit tax problem is "...a bigger issue now because of the volume of people who are unemployed..." Stimulus checks, by contrast, are not taxable, as they're considered advance payments of a tax credit. If you already feel your financial situation is out of control...contact us for a FREE CONSULTATION for debt resolution and/or bankruptcy at (731) 423-1888. The law office of T. Verner Smith has helped thousands overcome financial problems, and can help you too. Call today!  SMALL BUSINESS COULD FACE CATASTROPHIC CONSEQUENCES Over 100 business executives sent a letter to Congress this week, warning of CATASTROPHIC consequences if small businesses aren't bailed out due to COVID-19. The letter states "By Labor Day, we foresee a wave of permanent closures...by year end, the domino effect of lost jobs, as well as lost services and products...could be catastrophic." The letter was signed by a number of business leaders including representatives of Starbucks, Facebook, Microsoft, Walmart, and the Chamber of Commerce. In it, they said legislation needs to guarantee federal loans to sustain small businesses through 2020 and well into 2021...adding that a two or three month program won't be enough. More details about the story here.  TENNESSEE RESIDENTS MAY FACE EVICTION
Meanwhile, in another story this week, the headline reads: "Wave of evictions expected...in many states." Within the article, the writers note "with 30 million unemployed...and the federal eviction moratorium that expired July 25th...if not extended, landlords can initiate eviction proceedings in 30 days....it's going to be a mess." A survey last week found that 30% of Tennessee residents said they weren't able to make last month's rent or mortgage payment and had little or no confidence they could pay this month's. Read the story here. Most families admittedly were already living paycheck to paycheck, and new stimulus packages being proposed by the government ultimately tells them they'll need to get by with even less. The fact remains that the vast majority of Tennesseeans were unprepared for a crisis such as this, the goal posts keep getting moved, and as the money tap is now slowly being turned off...bank accounts will dwindle, debts will continue to mount, and bill collectors will be feeling the pressure as well to COLLECT, by whatever means necessary. Smart families should be preparing to take legal steps now. If you already feel your financial situation is out of control...contact us for a FREE CONSULTATION for debt resolution and/or bankruptcy at (731) 423-1888. The law office of T. Verner Smith has helped thousands overcome financial problems, and can help you too. Call today!  Back in February, you were employed, looking at possible raises in 2020, and the future seemed bright.
Now as July finishes up, you've been unemployed for 5 months, unemployment is drying up, the $600 per week bonus appears to be gone, and the prospects for the future look dim. At best, according to political suggestions this week, you may qualify for 70% of what your old weekly salary was (with a $500 cap)...and experts say most states won't be able to roll that out for weeks, if not months. Until then, they say, good luck....and here's an extra $200 a week. The new stimulus package being promoted, is called the HEALS act (an acronym for Health, Economic Assistance, Liability Protection and Schools Act)...and until it can be rolled out, the plan calls for two months where unemployment beneficiaries would receive a flat $200 a week on top of what they would otherwise receive at the state level. If and when the HEALS act would actually begin, recipients (if still unemployed), could receive up to 70% of their old salary (with a $500/week cap). See the story here. Most families admittedly were already living paycheck to paycheck, and this new package ultimately tells them they'll need to get by with even less. The fact remains that the vast majority of Tennesseeans were unprepared for a crisis such as this, the goal posts keep getting moved, and as the money tap is now slowly being turned off...bank accounts will dwindle, debts will continue to mount, and bill collectors will be coming out with guns ablaze. Smart families should be preparing to take legal steps now. If you already feel your financial situation is out of control...contact us for a FREE CONSULTATION for debt resolution and/or bankruptcy at (731) 423-1888. The law office of T. Verner Smith has helped thousands overcome financial problems, and can help you too. Call today!  Despite most of the nation's school systems moving toward reopening soon, there has been some push back of late, including Florida largest teachers union filing a lawsuit.
Earlier this week, the Florida Education Association is accusing the Governor and other state officials of violating the state's constitutional mandate to keep public schools 'safe and secure'. In legal paperwork filed in Miami, the union is asking the state court to halt the schools' reopening. Florida is struggling with a recent surge in new cases, starting this week with 10,000+ per day, and teachers say they are fearful for their own health. Some school systems in Texas have pushed their opening date from mid August to late August, and other school systems nationwide are straddling the fence as well. Locally, the Jackson TN NAACP has announced their opposition to the current August 24th start date, stating: “Tennessee has been identified as one of the states on the rise with COVID-19. Because of the recent local increase of infections and deaths, our students, teachers, staff and their families would be at risk. We encourage school administration, elected leaders and health department officials, to rethink their position of returning to schools and instead prepare teachers, parents and students for virtual on-line learning until this virus is under control. Saving lives should be our number one goal.” As schools go....so do households. If school systems struggle to open, are delayed in opening, or households are forced to educate their children from home, the effects will be immediate and personal. Most homes will be affected financially, creating additional hardships. The continuing pandemic is creating a ripple effect that will be felt for weeks, if not months, or years. If you already feel your financial situation is out of control...contact us for a FREE CONSULTATION for debt resolution and/or bankruptcy at (731) 423-1888. The law office of T. Verner Smith has helped thousands overcome financial problems, and can help you too. Call today!  According to at least one on-line article, the current unemployment rate is nearly DOUBLE what they say it is.
In an article written earlier this week (here), the author says "the Bureau of Labor Statistics doesn't actually count the number of people who are employed/unemployed; they rely on a sampling survey of employers, which is more like an election poll than an actual measurement." He goes on to say that the data collectors "ignore the 14.3 million contract/gig workers who are currently drawing emergency Federal unemployment via Pandemic Unemployment Assistance, and the 936,000 in the Pandemic Emergency Unemployment Compensation program." Additionally, he writes "...even the 21% real-world unemployment rate doesn't reflect the full unemployment picture (which should include) previously full-time workers who have had their hours cut to part-time." He notes those tabulations aren't figured into the totals at all, yet they do exist. And finally, a group that is often left out of the unemployment picture are small business owners who have closed. Those who are incorporated and paid unemployment insurance on THEMSELVES qualify for unemployment, HOWEVER, many owners didn't pay themselves as employees - and their status is uncertain and uncounted. Ultimately, as the article clearly notes, while an unemployment figure of 12% is more than triple what it was less than 6 months ago...the ACTUAL number is much worse than reported. If you already feel your financial situation is out of control...contact us for a FREE CONSULTATION for debt resolution and/or bankruptcy at (731) 423-1888. The law office of T. Verner Smith has helped thousands overcome financial problems, and can help you too. Call today! |
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