Bankruptcy Law, COVID-19

November Personal Bankruptcy Filings Drop to a 14-Year Low

Personal bankruptcy filings reported in the country for the month of November hit a low not seen in 14 years. Financial analysts believe the drop in personal bankruptcy filings can be attributed to the current national and statewide moratoriums on evictions and foreclosures, as well as the availability of governmental stimulus aid related to the coronavirus (COVID-19) pandemic.

According to figures from the legal services provider, Epiq Systems, Inc., the total number of personal bankruptcy filings in the month of November amounted to 34,440 filings. This is the lowest monthly total reported since January 2006.  

Coronavirus, COVID-19, Credit Card Debt

More Americans Paying Rent on Credit Cards with No Second Stimulus Relief Bill in Sight

The coronavirus (COVID-19) pandemic has hit the country hard.  Many people have been left with no choice but to use their credit cards to pay for basic living expenses, including their rent. Financial analysts fear that this trend could be a warning sign that, without a second stimulus relief package from Congress, the nation’s economy is heading towards another crisis.  

According to statistics from the Federal Reserve Bank of Philadelphia, an increase of approximately 70 percent has been reported on the number of consumers using their credit cards to pay their rent. What this indicates is that the person using their credit to pay for the most basic of living expenses is significantly struggling, does not have any savings to pay for unexpected expenses, and is at risk of losing his or her home.  

Business Bankruptcy, COVID-19

Stimulus Relief Fails to Save Hundreds of Businesses

The financial ramifications of the COVID-19 pandemic have been significant for countless businesses throughout the United States.  At the start of the pandemic, federal stimulus funds were issued in various forms to help businesses survive the economic crisis. However, as the virus continues, many of these businesses are being forced to close.  

According to a Wall Street Journal analysis of legal filings and government data, over 300 U.S. companies that received approximately half a billion dollars in stimulus relief have also filed for bankruptcy this year. These 300 companies employ a total of 23,400 workers who are being adversely affected.  

Coronavirus, COVID-19, Credit Card Debt

How the Pandemic is Changing Americans’ Credit Card Habits

The coronavirus (COVID-19) pandemic has changed the way of life for consumers in both good and bad ways. One change has to do with the way Americans utilize their credit cards post-pandemic. 

A recent study conducted by Money and Morning Consult surveyed how American consumers have been using their credit cards during this crisis. What the study found was Americans are continuing to use their cards. However, the way by which they are using their cards has changed.  

Coronavirus, COVID-19, Foreclosure Defense, Foreclosures

Governor DeSantis Issues Amended Executive Order on Foreclosures and Evictions

The statewide moratorium on evictions and foreclosures during the coronavirus (COVID-19) crisis has been extended via an executive order issued by Gov. Ron DeSantis. However, critics are questioning the language within the order itself as to just what it means for Florida residents facing evictions or foreclosures.

The executive order was signed and announced on July 29. However, the amended language in this new executive order does not prevent all evictions and foreclosures like the previous one did.

Foreclosure Defense, Foreclosures

Federal Ban on Foreclosures and Evictions Extended through End of August

As the coronavirus has put hundreds of thousands of Americans out of work, many are struggling to pay necessary living expenses, including rent and mortgage payments.  At the start of the pandemic, many states, as well as the Federal Housing Finance Agency (FHFA) issued a temporary ban on foreclosures and evictions to help alleviate this burden.

This week, the FHFA has announced that they will be extending this ban on foreclosures and evictions through at least August 31.

Bankruptcy Law, Coronavirus, COVID-19, Debt Relief

A Tidal Wave of Bankruptcies Expected in the Coming Months

As the coronavirus (COVID-19) pandemic continues, many small businesses are filing for bankruptcy to help reorganize their debt and keep creditors at bay. The types of companies being affected include small mom and pop shops, as well as larger corporations.  Hertz and J. Crew, recently filed for Chapter 11 bankruptcy, and the number of businesses following suit are expected to rise.

According to Edward I. Altman, the man responsible for creating the Z score, a figure that is used to predict business failures, the year 2020 is expected to set a record for ‘mega bankruptcies,’ meaning businesses with $1 billion or more in debt will be filing for bankruptcy protection. The effects of this could be devastating to the U.S. economy.

Bankruptcy Law, Coronavirus, COVID-19

Bankruptcy and the Coronavirus: Help for Florida Small Businesses

The coronavirus (COVID-19) pandemic has been hard on businesses. During the shutdown, countless South Florida businesses were forced to shutter or adjust to a new normal, bringing in significantly less income than before. Many of these business owners have also been compelled to make some tough decisions, including the decision on whether to proceed with bankruptcy.

Bankruptcy can be beneficial for businesses that are struggling during this difficult time. The bankruptcy framework and the automatic stay that occurs immediately upon filing for bankruptcy offers relief that individuals and business owners desperately need.