This Pasadena Attorney Is Predicting a Big Rise in Bankruptcy Filings in 2021

No one was ready for 2020. The novel coronavirus pandemic has profoundly impacted the finances of millions of people and even businesses. With the increase in cases of COVID-19, many companies had to close their doors indefinitely due to the quarantine. Thousands of companies ceased operations overnight and began to bleed money. As a result, many people lost their jobs and were forced to take on huge debts to survive during the lockdown. We all lost something this year; some lost their jobs after years of service; others lost their life savings.

The pasadena bankruptcy attorneys at Huprich Vega have observed and analyzed the crisis carefully, and everything points to a dramatic increase in bankruptcy filings in the year 2021.

Why bankruptcy?

Many people think that bankruptcy represents the failure of a person or a company. However, this belief only exists thanks to years of misinformation and common misconceptions.  The truth is that in times of crisis such as these, bankruptcy is one option to get rid of debt and even get a fresh financial start.

There is no global crisis big enough to stop some creditors. When your debts pile up, you can be constantly harassed or even threatened with legal action if you don't pay them. Thankfully, another positive factor of bankruptcy is that it legally protects you from harassment, collections, and potential lawsuits.

Why will bankruptcy filings will increase in 2021?

Amid the economic crisis caused by the pandemic, many companies and individuals were hit in different ways. One thing that both people and businesses have in common is that many were forced into excessive debt to stay afloat. However, the future remains uncertain, and if the economy doesn't open up soon, for some it will be impossible to pay these debts.

That's why Huprich Vega predicts that there will be a significant increase in bankruptcy filings in 2021 - an alternative that possibly millions of people and businesses will turn to to get a fresh start.

What types of bankruptcies are there?

Fortunately, there are different types of bankruptcies for each situation. For example, if you want to get rid of your debts as quickly as possible, and are considering potentially giving up your car in the process, then Chapter 7 Bankruptcy may be your ideal option.

On the other hand, if you’ve managed to maintain some income during the lockdown, but still wish to relieve your debts, then Chapter 13 Bankruptcy may be the answer. In Chapter 13, you will need to restructure your finances and develop a payment plan that allows you to get out of debt over time by making monthly payments. Also, as long as you make your payments, you won't lose any of your assets and will rid yourself of significant debt.

Talk to a Bankruptcy attorney.

If you live in Pasadena or one of the surrounding areas and the pandemic impacted your financial situation, you may want to consider bankruptcy as an alternative. To ensure that your petition is successful, the best decision you can make is to work with experienced attorneys who have the knowledge to guide you every step of the way to a fresh start. Huprich Vega’s team of attorneys is ready to listen to your story and help you get back on track. Call now for a free consultation so that you can evaluate all your options!

This article is Legal Facts Approved