Call Now
(916) 780-7005
Click Here
Free Case Analysis
MENU
  • Spectacular!

    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
  • Highly Recommended!

    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
  • Very Professional.

    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
  • Non-judgmental.

    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
  • More Than Expected!

    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
  • Very Impressed!

    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

Cares Act And Rate Of Bankruptcy Filings

Recently several news outlets have reported that due to the CARE’s act, bankruptcy filings are down 34% nationwide. Some are saying that the reduction is due to the temporary assistance from CARE’s act payments and moratoriums on evictions and foreclosures. While the stimulus payments may be a temporary Band-Aid on a larger problem, it may not be the only reason bankruptcy filings are temporarily down. This recent news article did not take into consideration the law firms that have also had to abide by the shelter in place orders during this time and have potentially seen slows in productivity as firms halt in-person meetings and either close temporarily or adapt to working remotely.

The slight reduction in filings are most likely temporary. In July when Care’s Act funds and stimulus payments are no longer being issued, many businesses and individuals will further feel the sting from the economic impact COVID has had. It is also interesting to note that the states and major cities that report the most drastic reductions in filings were hit hardest with COVID-19 confirmed cases and had a longer shelter in place mandate, New York, and Manhattan to be specific.

Stimulus Payments

The stimulus payments may have kept the boat temporarily afloat, but it was just a brief reprieve from the inevitable. With landlords and property management companies providing COVID related deferments to their tenants, it won’t be long before the property owners begin to fall behind on their mortgages with the lack of rental income. This will cause a chain reaction of foreclosures and evictions later down the line.

Smaller businesses like restaurants, salons, and bars may have managed to stay afloat for now if their lease payments have been deferred. When those businesses re-open and it is time to catch up on those deferred payments, will that be realistic or feasible after months with little to no income? Reopening at a lesser capacity to encourage social distancing means that many of these businesses will be operating with the same expenses and still suffering a reduced income.

Second Stimulus

There are still so many variables to the COVID-19 equation that have not yet been solved. There are discussions of a potential second stimulus in various forms that either put funds directly into Americans’ pockets or provides incentives to bail out the struggling travel industry. The curve that we have worked so hard to flatten over the last three months has begun to spike again as businesses begin to reopen. As devastating as the last shelter in place was economically, a second wave and a second shelter in place are not unrealistic concerns.

For more information, contact your Folsom bankruptcy attorney at (916) 780-7005.

Categorized in: