It is clear that individual debt is rising and is almost out of control.
There is a tremendous debt outstanding by individuals in the U.S. For example, as of September 2020, there was 21.0 trillion debt by the public.
As of Sept. 30, 2020, the federal debt was $26.9 trillion—up $4.2 trillion from last year, due largely to the government’s COVID-19 response as audited by the GOA (https://www.gao.gov/products/GAO-21-124#:~:text=30%2C%202020%2C%20the%20federal%20debt,the%20money%20for%20federal%20operations.)
With COVID-19, unemployment, and the ending of loan forgiveness, individuals are facing increased pressure to get further into debt. Although the amount of bankruptcy filings in NJ are decreasing, debt is rising. Below are just a few reasons many are holding off filing for bankruptcy:
- Evictions are on hold.
- Loan forgiveness
- Cares act payments
- NJ Foreclosures are on hold: https://nj.gov/governor/news/news/562020/approved/20201024a.shtml#:~:text=do%20exactly%20that.%E2%80%9D-,Executive%20Order%20No.,by%20the%20COVID%2D19%20outbreak
- Extended unemployment payments
When the COVID-19 crisis comes close to herd immunity, many will find themselves deeper in debt.
Timing of getting rid of your debt is key in evaluating when to file NJ Bankruptcy.
If you are currently earning less, you can benefit from filing bankruptcy. Most individual’s income is lower at this time. That factor is key in bankruptcy law. In bankruptcy, the last 6 months of your income is considered. That may be the lowest income and will help you qualify for Bankruptcy.
Individual debt is rising and, as a bankruptcy lawyer I urge you to evaluate whether now is the best time for you to file Chapter 7, Chapter 11 or Chapter 13 bankruptcy.
I am here to help you. I am a NJ Board Certified Bankruptcy Lawyer and offer free consults.
Call me today: Ralph A. Ferro, Jr., Esq. (201) 446-5904 https://njbankruptcylawfirms.com/timing-of-your-bankruptcy-during-the-pandemic/