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    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
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    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
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    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
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    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
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    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
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    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

Bankruptcy Filings Down Nationwide

Are Americans Waiting Too Long to File Bankruptcy Amidst COVID?  

Roughly 17 million people (about 14% of US households) owe more value in debt  than they do in assets, according to an estimate provided by the Federal Reserve Bank of  New York. However, only 1% of households actually file for bankruptcy in a typical  year.  

The COVID pandemic has actually led to a drastic decrease in the number of  personal bankruptcy filings in spite of record unemployment numbers and a sharp spike  in defaults on rent and mortgage payments. According to the Washington Post, during  the second quarter of this year, personal bankruptcy filings decreased by 40% when  compared to the average number of case filings in the past five years. How and why is  this possible? Is there going to be an avalanche of personal bankruptcies in the near  future?  

Legal System Downtime 

One possible explanation for this recent drop in case filings is the closure of many  courthouses throughout the country at the outset of the pandemic. This caused many  creditors who otherwise may have been able to obtain a judgment to delay their lawsuits.  Additionally, states such as California put a moratorium on all judicial proceedings to  foreclose. A lawsuit or foreclosure can often spur someone into filing a bankruptcy to  protect their future wages from garnishment or save their home from a foreclosure  auction. Without these external pressures, people may conclude they do not need to file  bankruptcy quite yet.  

CARES Act  

Most Americans received a one-time stimulus check for $1,200. Additionally,  unemployment benefits were granted a temporary, aggressive expansion to include an  additional $600 per week. These additional payments expired on July 31, 2020 and likely  contributed to a large number of prevented bankruptcy filings when unemployment was  at its peak earlier this summer. This expiration of benefits combined with lack of  optimism for any future disbursements such as those in the CARES Act may cause more  people to file who otherwise might have done so sooner.  

Fear of Losing Property or Access to Credit  

The main reason people do not explore the possibility of bankruptcy is not  affected or driven by COVID, but rather is a result of misunderstandings on the public’s  part about the bankruptcy process and what assets they can protect when filing. Many  first-time callers to our office express anxiety about losing their home, car or other  important property. A good portion of these callers end up having had no reason to be  concerned about filing and their fear was almost entirely based on what they had learned 

about the process via osmosis from media reports and anecdotes. Calling a bankruptcy  attorney to see how they can help does not commit one to filing a case and does not affect  one’s standing with their creditors in any way. Getting advice early often results in much  better outcomes than for those who wait too long and find out they could have saved a lot  of money and stress by filing sooner.  

 Many potential filers will drain their retirement savings which would have been  protected in bankruptcy in order to keep themselves current on their debts. For many  Americans who are not old enough to freely draw from their retirement accounts, this can  result in a double-whammy effect where they drain their future savings while also  accruing new tax liabilities in order to make minimum payments on a debt.  

 Additionally, many Americans fear the possibility that if they file they will not be  able to acquire any financing options or lines of credit for a long time. The good news  here is that this is simply not true. Credit scores often recover within the first two years  after filing a case and the costs to finance are less than many people believe.  

 Filing for bankruptcy before you drain your personal assets can save you a lot of  money and trouble in the future. If you have any questions about filing bankruptcy please  feel free to reach out to your Stockton bankruptcy attorney at 209-952-0355. 

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