The Coronavirus is spreading throughout the entire world. Governments have locked down countries, airlines are not flying, and people are ravaging supermarkets to stock up on basic supplies. What does this virus mean for the world and the future? At this moment in time there is going to be stimulus checks going out to low income earners over the next few months. Even with this stimulus check, these small amounts most likely will just help with just buying some groceries. For most people this check won’t even be enough to take care of their monthly rent costs.
Certain studies have shown that it could be as high as 75% of American live paycheck to paycheck. If these Americans are not able to get their jobs back then this can be a real problem for the economy of the United States. Especially those who work an hourly job, their income will basically go down to zero for the next few months. This will cause a ripple effect throughout the entire economy because people will not be able to afford their rent payments, car loans, mortgages, credit card debts, and so on.
Even though at this moment in time it doesn’t seem like there is an increase in bankruptcies, one interesting thing to consider is that certain bankruptcy websites have seen a surge in traffic recently. This most likely means that Americans are getting more and more interested in filing for bankruptcy due to the Coronavirus. Over the next few months we will probably see a surge in bankruptcy filings due to the everlasting effects that the Coronavirus had on the world economy.
Large companies such as J.C. Penney may have their bankruptcy process be accelerated due to the Coronavirus. They were already struggling before the Coronavirus but now the future does not look too bright for them. It will be interesting to see if this once department store behemoth will be able to survive the effects of something that can only be seen by a microscope. In the future following the Coronavirus pandemic, it is most likely that J.C. Penney will not be the only large player that will be heading for bankruptcy.
Airlines and cruise companies have also been taking huge financial hits due to the Coronavirus. For example, Carnival Corp, the company that is responsible for some of the largest cruise ships to sail the ocean, saw their stock drop from $51.90 all the way down to $7.97 in a matter of a few months. Trump has already signed a $58 billion bailout to help the airline industry go through this tough time. Airlines are an essential business and we need to get things back to normal because these stimulus funds can’t go on forever. It is rumored that Virgin Australia has already declared bankruptcy.
The Coronavirus isn’t just affecting Americans. There are stories even in Thailand of famous restaurants, like Pattaya BBQ Hut that may have to file for bankruptcy if the government doesn’t end the lockdown. At this moment in time restaurants are only able to serve take out, they are not allowed to have customers sit and relax inside the building. It is reported that certain restaurants have seen a decrease in revenue of up to 80%. The Coronavirus is making for a sad situation for many mom and pop businesses. Large fast food chains will be able to survive the hit to revenue but basic small shops will most likely not be able to make it through if this continues for more months.
Certain governments around the world are even making changes to their bankruptcy laws to help with the Coronavirus situation. In Australia they have made some changes to the bankruptcy law, for example, it used to be the debt threshold for a creditor to apply for bankruptcy notice against debtor was $5,000 but will now be increase to $20,000. The timeframe for a creditor to commence the bankruptcy proceeding has been increase from 21 days to now being all the way up to six months. There is also a temporary protection period that prevents unsecured creditors from trying to collect funds from 21 days to now six months.
Recent college graduates are also feeling the affects of the Coronavirus. With everybody being on lock down and companies struggling it is harder than ever to find a good paying job. With that being said, many college graduates do not have to pay their student loan payments for the next 6 months. They will not be charged any interest during this 6-month period.
The world is in total lock down and we are not sure when the government will allow things to go make to normal. Even when everything goes back to normal the world will probably never be the same as the post virus world. People will still be scared, possibly continuing to wear masks for years, or even buying a new freezer to stockpile meat. It will be interesting to see how everything plays out over the next few months. We will have to just wait and see what ends up happening.
With that being said, if you are interested in filing for bankruptcy feel free to contact us at The Weller Legal Group. We have over 25 years of experience in helping our clients with their bankruptcies. Filing for bankruptcy can be a great start to a fresh new beginning. If the Coronavirus or any other reason has made your financial situation difficult we are here to help. Many people are overwhelmed with their financial situations but we can help you every step of the way in understanding and getting through the entire process. We have offices located all throughout Florida, including, Clearwater, Port Richey, Lakeland, and our Tampa office. Give us a call today at 1-813-229-3328 and set up an appointment to discuss if filing for bankruptcy is the right option for you and your family.
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