Could Georgia See a Surge of Bankruptcies Due to COVID-19?

While the health impact of COVID-19 has been covered extensively by new organizations, the economic impact of the virus is sometimes less of a priority for reporters. With so much government intervention in the form of stimulus checks and economic relief programs, perhaps many citizens of Georgia have the necessary support systems in place when dealing with financial pressures. On the other hand, there are plenty of people who may be “falling through the cracks.” Some experts predict a sudden surge in bankruptcies as individuals begin to feel the delayed economic impact of COVID-19.

The good news is that help is always available for these individuals. If you are considering bankruptcy during these uncertain times, it is best to team up with a qualified attorney who specializes in bankruptcy law. These legal experts can explain the various options, including Chapter 7 bankruptcy and Chapter 13 bankruptcy. Once you have decided on the best course of action, your bankruptcy lawyer can guide you through the next steps. 

The Statistics are Troubling

Amazingly, bankruptcies are actually down in Georgia. Before the pandemic began, more people were filing for bankruptcy. Since the pandemic began, the total number of bankruptcy filings has dropped significantly. Experts attribute this to the considerable degree of financial assistance that the government has offered its citizens during this time. 

However, experts also understand that the bankruptcy rate tends to “lag behind” economic developments. Many individuals wait until the very last second before filing for bankruptcy, exhausting all other options first. This means that government assistance could be merely delaying the inevitable as individuals try to scrape together the cash to keep themselves (and their businesses) afloat. 

The statistics are worrying. In March of 2021, it was reported that 20% of families with children did not have enough money to adequately feed themselves. The number of Georgians on food stamps is steadily rising. Workers in hard-hit sectors have little options, especially since these sectors are not expected to rebound until after the pandemic fully passes. Generally speaking, creditors have been pretty patient about unpaid debts. But when the economy recovers, they will start to “squeeze” borrowers. This is when experts believe that bankruptcies will surge. 

Foreclosures can Happen Fast in Georgia

Due to Georgia’s “rapid foreclosure laws,” bankruptcy can be daunting for many citizens. Chapter 13 bankruptcy allows you to keep your home, but there are many restrictions. Chapter 7 bankruptcy generally requires that you liquidate your assets completely. This is one reason why some individuals might be delaying moving forward with their bankruptcies. When you work with a skilled attorney, you can alleviate many of these concerns and proceed with confidence. 

Enlist a Qualified Attorney Today

If you have been searching Georgia for a qualified, experienced bankruptcy attorney, look no further than Lankford & Moore Law. We specialize in bankruptcies, and we are passionate about helping individuals in Georgia overcome the financial pressures that are so common during this pandemic. Remember, there is always help available for those who need it. Reach out today, book your consultation, and we can take steps to address this issue together.

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Mahatma Gandhi

Lankford & Moore Law in Downtown Lawrenceville

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