Bankruptcies on the rise as pandemic aid ends

According to an article from CBS news: "The end of federal pandemic aid is putting many Americans and businesses under mounting financial pressure, leading to a spike in bankruptcies. Total bankruptcy filings in January shot up 19% in January to 31,087, up 19% from a year ago, according to data from Epiq, a legal research firm. The number of Americans who filed for bankruptcy across Chapters 7, 11 and 13 shot up 20% in January from a year ago. The surge in filings comes as rising interest rates and high inflation continue to stress household budgets."

The COVID-19 pandemic has had a significant impact on the economy, causing financial hardship for individuals and businesses alike. With the pandemic aid programs now coming to an end, bankruptcy filings are on the rise nationwide. Banktuptcy attorney Verner Smith in Jackson, Tennessee, is seeing an influx of clients from all across West Tennessee seeking debt relief.

As an experienced bankruptcy attorney, Verner Smith understands the challenges facing individuals and businesses struggling with debt. He is well-versed in the bankruptcy process and can help clients navigate the complex legal system to achieve the best possible outcome.

The pandemic has affected many different industries, from travel and hospitality to retail and manufacturing. With so many people losing their jobs or experiencing reduced income, it's not surprising that bankruptcy filings are on the rise. The pandemic aid programs, such as stimulus checks and unemployment benefits, provided some relief for those in need, but now that these programs are ending, many people are finding it difficult to make ends meet.

If you're struggling with debt, it's important to seek the help of a knowledgeable bankruptcy attorney like Verner Smith. He can evaluate your financial situation and recommend the best course of action to help you get back on track. Bankruptcy is not a one-size-fits-all solution, so it's important to work with an attorney who can provide personalized advice based on your specific circumstances.

One of the benefits of filing for bankruptcy is that it can provide immediate relief from creditor harassment, wage garnishments, and other collection activities. It can also give you a fresh start by wiping out certain types of debt, such as credit card debt and medical bills.

If you're considering bankruptcy, seek the advice of a qualified bankruptcy attorney like Verner Smith. With his help, you can make an informed decision about whether bankruptcy is the right option for you.

Through financial restructuring, debt resolution, or legal options including but not limited to bankruptcy, there are ways to relieve the pressure and chart a path to a better future. Don't be embarrassed, don't be hesitant, you are not alone, and taking action now is the smart approach. 

​Call us at (731) 423-1888 and schedule a free consultation.

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