At this time, we are all facing challenges—both as individuals and business owners. The long term effects of the COVID-19 pandemic on our economy are uncertain. Although we are hoping for a quick recovery, many economists are warning of a recovery that may take eight months or longer. We know that things will never be as they were before. Some industries will take much longer to recover than others.
What does this all mean to us? Well, if we are in a business or career that is likely to be hard hit and have a slow recovery, it will mean that even though best efforts are made, it is just not possible to meet every financial obligation. It will be essential to consider what options are available. It may be possible to negotiate settlements with landlords, mortgage companies, and other creditors. It will be crucial to prioritize those payments that "must" be made vs. those that can be allowed to be a little bit late.
If we have reviewed those options and are still unable to see how we might be able to dig our way out of this situation, then it may be time to consider filing a Bankruptcy Petition seriously. In Bankruptcy, there are a few choices and planning strategies that can help to protect more of your assets and savings. Some forms of Bankruptcy completely wipe out your debt and others give you a repayment plan with payments you can afford over a 3 or 5 year period.
Like many things, early planning is essential. Although you may not be ready to file for Bankruptcy today, it would be wise to plan for what might be a reality early. Your attorney can help you decide if Bankruptcy will be a good move or if other options may make more sense for you. There are many factors to consider, and your lawyer can help lift that heavy burden from your shoulders.