As the coronavirus makes its way across the country, many Americans and Utah residents are starting to experience serious financial consequences. Any non-essential worker who is unable to work from home has probably been laid off or given reduced working hours.
Schools are closed, forcing parents to concoct inventive ways to occupy their children, let alone, find ways to compensate for their children’s postponed schooling and a lack of open daycare facilities for younger family members.
Americans are filing unemployment benefits at rates we haven’t seen in our lifetimes. The month’s bills are not yet being paid as Americans wait for their unemployment benefits and stimulus checks.
Despite the CARES Act and stimulus payments, small business owners and homeowners are bracing for tough economic times for the remainder of 2020, and even beyond. Of course, as humans, undoubtedly, we will show our resilience and overcome the current hurdles presented by the coronavirus pandemic.
Unfortunately for small business persons and homeowners, bankruptcies are not expected to decline during these stressful times. It does not take an expert to deduce that quite the opposite seems to be true. Whether this will trigger any crisis in the credit market or simply be a ripple remains to be seen. Just the same, financial experts believe there are legitimate reasons for concern.
One distinguished bankruptcy professor, NYU Stern School of Business professor emeritus Ed Altman claims the current level of distress in the corporate debt market is just now reaching the same status as the 2008 financial crisis. Altman made the following statement:
“Bankruptcy and default potential for high-yield companies doubled from 5% to 10% in just a few weeks. These numbers are showing a likely default rate over the next twelve months of just under 10 percent, which is a huge, unprecedented increase in just a few weeks. “It does signal a crisis in the credit market whenever you get to that 10% level.”
Thus, it seems that bankruptcies and other default strategies are going to increase exponentially in the near future. A national recession on the same scale as the one in 2008 may even occur. If you’re experiencing firsthand the effects of the pandemic on your finances, contact the Morrison Law Group today. We can help you obtain a fresh start without losing your home, car, retirement savings, or any other personal property.
The Morrison Law Group strives to achieve complete client satisfaction with the services we provide throughout a bankruptcy case, as well as the ongoing services that we provide post-bankruptcy. Not all Utah Bankruptcy attorneys can make this statement, but the Morrison Law Group is not like other Utah bankruptcy law firms. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.