Florida’s Record Unemployed Remain Unpaid. Is Bankruptcy on your Horizon?
The personal decision to file for bankruptcy may be complicated; however, it may be the only option. Is bankruptcy now on the horizon for many who would have never considered bankruptcy as an alternative?
Many of Florida’s record unemployed remain unpaid. Many Floridians are unemployed, and unemployment benefits may expire in a few months. Others are struggling with a broken unemployment system and are receiving no payments or only partial payments. Sadly, they may not be able to meet the necessities of life, such as housing and food.
Florida’s unemployment rate in March 2020 was 4.4%. Currently, Tampa’s unemployment rate is 13.1%, and Orlando’s is 16.2%. Anywhere in Florida, especially in Tampa Bay and Orlando, daily newscasts and newspaper reports describe the frustrations of the record number of unemployed Floridians.
Many who first filed for unemployment benefits at the end of March 2020 are still trying to get their first state unemployment benefits. Eligible unemployment claimants receive a maximum of $275 per week, and, if related to the coronavirus shutdown, enhanced federal benefits of $600 per week on top of the state monies. State government officials continue to say that every eligible unemployed worker is being paid, or will quickly be paid, their state benefits. The voices of the unemployed, journalists, and others, however, paint a different picture.
Many have received no income from any State or Federal source for well over two months. If not for the federal CARES Act and many creditors working with individual consumers on relaxed payment options, many would have already started considering their chapter 7 or 13 bankruptcy options. Others may have entered into a forbearance agreement on their mortgages where they deferred up to three months or more of payments. For some, the full amount deferred may come due at the end of the forbearance period. Creditors temporarily suspended credit card or auto loan payments, on average, for 1-2 months with payments resuming soon.
Unfortunately, many furloughed workers may lose their jobs while others in hard-hit industries will experience furloughs for months. During these unprecedented and unique times, bankruptcy may be an option for financial relief. For some, a Chapter 7 bankruptcy may provide needed relief and a fresh start. Chapter 13 Bankruptcy may help others keep their home by restructuring their debt over 3-5 years.
If bankruptcy could soon be on your financial horizon, remember that filing bankruptcy does not signify failure or make you less of a person. Regardless of whether you file a chapter 7 or chapter 13 bankruptcy, once you submit the Bankruptcy Petition, an automatic stay is immediately in effect. The automatic stay protects your property. Creditors must stop any attempts to collect, cease harassing phone calls, stop legal proceedings including foreclosures, repossessions, and garnishments. If you are behind on your bills and are considering bankruptcy, please call 813-308-9045 today for a free initial consultation. I am here for you, and, as always, Press on Regardless.
