Is There Such Thing as a Covid Bankruptcy?

Posted by Wesley Scott on July 29, 2020 at 12:37 PM
Wesley Scott

medical_bankruptcy_in_minneapolis_mnThe other day, I had a caller ask me is there such a thing as a COVID 19 bankruptcy? I said that is interesting question and the answer is yes and no. No, there is no specific bankruptcy called COVID 19 bankruptcy but yes there are plenty of bankruptcies that are the direct result of COVID 19. It is the same thing as when someone asked about whether there is a bankruptcy dedicated to just medical bills, you know, like a medical bankruptcy. The answer is the same. No, there is no such thing as a medical bankruptcy but medical bills cause a lot of bankruptcies.

There simply is no doubt that millions of Americans financial lives have been, and will be, devastated by COVID 19. COVID 19 has affected all segments of society. If you want to hire a contractor to put an addition on your home that may be great but that contractor may not be able to get the windows you want because a certain part for the window is not being made due to COVID 19. That one tiny part for the window can delay the entire project because you cannot build an addition without windows! 

This sort of example is the type of thing that is going on all over the world. We are so intertwined globally that the end product can be a collection of parts from all over the world. Any interruption in those parts, or even just a few of those parts, can bring entire projects to a halt. 

 This is not to mention the number of jobs that have been lost and reduction in income to many other jobs because of COVID 19. If you are considering filing bankruptcy due to COVID 19, you are not alone!

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A Word from a MN Bankruptcy Attorney, Wesley Scott