The COVID-19 pandemic and the ensuing lockdown have put people and the economy in an interesting situation. With many businesses shutting down for an indefinite period of time, people have been stuck having to live with the bare minimum, while awaiting further instruction from the government. As a result, many people and companies are being forced into bankruptcy situations, due to the fact that they are not able to pay off their loans and debts. If you are facing a situation like this, it is important not to panic and to make the correct decisions right away.
Here are the latest bankruptcy updates during the COVID-19 outbreak.
Getting a Free Debt Assessment
The steps towards declaring bankruptcy still remain the same during the outbreak, and it is important to touch up on the steps or learn them if they are something new to you. The first step towards bankruptcy is going to get a free debt assessment. These assessments will help give an idea of how much money you owe, your budget, and what you can do to get out of the situation. These assessments will also help determine if you need to declare bankruptcy or not.
Where can you find a free debt assessment? There are places in every country that can help advise you on situations such as this. Whether it be in New York or Quebec, you will find the service and help that you need. If you are looking for specifics, you can view and find useful info on a variety of websites. These websites will list all the places in your area that can help you out. From there, you need to get in touch with them and book an appointment. Always remember to get a debt assessment when you are starting to worry about your funds and thinking about bankruptcy.
Many Companies Are Starting to Go Bankrupt
The economic shutdown has been extremely tough on many businesses that were forced to shut down. Even ones that were declared essential took massive hits as the number of customers dropped to unprecedented lows. As a result, many companies were put in situations where they could no longer afford to keep running and have had to shut down permanently. The question to ask, then, is: What happens to their stocks and products? To do their best to pay off their outstanding debts, these companies will sell all of their remaining assets for extremely low prices to pay off whatever they can to the banks. This has happened with some car companies during the outbreak and, as a result, there is a large number of car deals.
As a consumer, if you are in a financially sound situation, you can take advantage of this by looking to buy from these companies. It is unfortunate that we are going to lose many different businesses and restaurants due to the crisis. However, with proper financial planning, you can gain an economic advantage. Be aware of what companies are starting to go under, as you can potentially offload their stocks beforehand or cash in on some deals.
Bankruptcy Is Not Permanent
One of the things that terrify people about bankruptcy is the thought of being stuck in it forever. It is important to understand that bankruptcy is not a permanent thing and that the majority of people are out of bankruptcy within a year or two. Bankruptcy will provide you with relief to help pay back all of the people you owe at an agreed rate, and once this is done, you are free to continue your life as usual.
While you might be embarrassed to fall into such a position, just know that this system has been created to help you out and allow you to get out of debt. Even some of the world's richest people have had to declare bankruptcy at some point to save themselves from debt. While bankruptcy is unfortunate, it is by no means a permanent problem and will aid you in getting your life back in order.
If you are put in a position where bankruptcy is the best option for you, do not be ashamed to take it. Remember to make sure you are in a position to declare bankruptcy as well, as declaring bankruptcy while you are not eligible is a crime with jail repercussions. Look to take advantage of deals and bargains if you notice certain companies are starting to go under and remember that bankruptcy is only a temporary thing. Some stores that have declared bankruptcy will bounce back in a few years if given the right opportunity. As the COVID-19 lockdown is beginning to be lifted, are you in a financially stable situation?