According to a news report published on LMTribune.com, the U.S. government has estimated that over 17 million Americans have filed for unemployment benefits since March. At this pace, many leading economists are predicting an unemployment rate of 15 percent or more by the end of April 2020.

Lawmakers and the Trump administration are discussing proposals to add another $350 billion to the recently launched small-business lending program. One of the ideas to slow the rate of unemployment is for the government to forgive business loans that were given to small businesses that retained its employees.

The Federal Reserve announced that it was developing new programs to give $2.3 trillion in loans to aid businesses and municipalities. The President has suggested that he is considering opening up the U.S. economy in the near future. However, it will take businesses extended periods of time to restart business as usual once the lockdown and stay-at-home orders are lifted. This means unemployment rates will continue to increase, and the potential economic recovery may take several months resulting in more people seeking bankruptcy protection. Also, the coronavirus is spreading into more rural areas of the country, which may mean longer delays in reopening the U.S. economy.

Economists believe the jobless rate is expected to remain around 10% at the end of 2020. Last Thursday’s unemployment claims report posted 6.6 million people applied for unemployment benefits. The prior week’s unemployment rate was over 6.9 million workers, and over 3.3 million filed the week before that. In mid-March of 2020, the weekly jobless claims numbers remained about 200,000 and for the previous several months. Six hundred ninety-five thousand unemployment claims in October 1982, was the previous weekly claims record.

In recent news, several large companies sought Chapter 11 Bankruptcy protection. The XFL and AMC Theaters are the most recent, large corporations to announce their intentions of filing for bankruptcy due to the massive financial losses stemming from the Coronavirus pandemic.

Is Bankruptcy the Right Option for Me?

In some cases, bankruptcy may not be the best option for an individual facing financial difficulties. For example, if a homeowner has been “temporarily” laid off from work, the homeowner might be able to defer mortgage payments through special programs offered through their mortgage company. Homeowners, who have federally backed mortgages, may qualify to apply to the Coronavirus Relief Act (CARES Act). The Coronavirus Relief Act is a federal program that helps borrows with federally backed mortgages defer their mortgage payments for up to 12 months.

In other situations, an individual or family may be faced with the hardship of job loss and unsurmountable debts. It is a frightening experience when you are receiving threatening letters and phone calls from collection agencies. We understand how this makes you feel. If you think your debts and job insecurity are too much for you to handle, now may be the time to discuss your financial situation with an experienced bankruptcy attorney.

Speaking with an attorney about your debt issues and learning more about bankruptcy protection doesn’t mean you have decided to file Chapter 7 or Chapter 13 Bankruptcy. In fact, our bankruptcy lawyer offers a free debt consultation to understand your specific legal situation better and answer important legal questions that you have. Our firm will help you understand which non-bankruptcy and bankruptcy options are available to you along with the advantages and disadvantages each has to offer.

Contact Our Santa Clara Bankruptcy Attorney

For more information about obtaining debt relief, contact Gemma V. Reyes at 408-292-6289.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.