On 3/27/2020, Las Vegas Bankruptcy Lawyer and staff write:  COVID-19, the Coronavirus, has turned the Las Vegas economy into something a little darker.  There is a lot more uncertainty now than there has been for a long time. The people of Henderson and Vegas most affected are the people least able to afford it.  Service sector employees are some of the lowest paid people. However, with casinos, bars, restaurants, and even offices closing, service sector people like dealers, waitresses and custodians are going to be the most vulnerable.

Bankruptcy will come up as the best option for a lot of folks.  Whether Chapter 7 bankruptcy or Chapter 13 bankruptcy, filing personal bankruptcy is usually the best bet.  Bankruptcy will wipe out debt instead of asking for concessions from creditors like debt relief companies. Therefore, instead of asking to pay half, the federal court will simply tell creditors they don’t get paid at all.  That is a powerful and beneficial tool.

Many Famous People Have Filed for Bankruptcy Through the Years

Even though bankruptcy will be the best option for most people who lose jobs or go without income, there is still a stigma that comes with it.  This should not be the case. Throughout history, some of the most respected figures have gone bankrupt.

1.  Abraham Lincoln.  Sure, his face is on the five dollar bill, but he could have used some of that money before he became president.  Honest Abe bought a store in Illinois before he was president. Things did not go as planned and he ended up with some debt.  It was only $1000, but that was a big deal back then. His creditors took him to court, but he did not have bankruptcy laws to save him.  Although he was bankrupt, he ended up paying creditors for years.

2. Thomas Jefferson.  Yes, he wrote the Declaration of Independence, but he was far from free of debt.  He was on the cusp of bankruptcy when he died a few months before creditors sold his property at auction.

3. Henry Ford.  Even before GM and Chrysler took hundreds of millions of dollars in bailout in 2008, Ford floundered upon inception.  Ford went bankrupt before making it big.

4. Walt Disney  Before Mickey, Walt Disney had to take his company bankrupt to get a fresh start.  If it is good enough for Mickey Mouse, it is good enough for the rest of us.

5. Burt Reynolds.  Among many stars and celebrities, Burt was Hollywood’s biggest star in the 70’s.  After his divorce from Loni Anderson, the Bandit ended up owing over $10 million dollars.  He had to file bankruptcy in the 90s.

6. George Foreman. After boxing, George became a minister.  That did not pay the same, and so he fell on hard times.  He has since sold enough grills to be a multi-millionaire estimating his worth at a cool quarter billion.

Let’s not forget 50 Cent, Toni Braxton, Mike Tyson, and Donald Trump.  If you are considering bankruptcy, you are in good company.

MANY STORIES

These are certainly sensational stories, and there are many, many more.  So how did these people go from worst to first? They allowed themselves to take advantage of help from the government when they needed it, regardless of what people thought.  There is no shame in doing that is best for you and your family, and getting help when you need it.

Shouldn’t You Try To Pay Your Debt Instead of Filing Chapter 7 Bankruptcy?

Have you ever borrowed money from a friend, interest free, and promise to pay her back?  That is the kind of debt you might consider repaying. That is a personal promise between you and a friend.  The arrangement you have with banks and credit card companies is much different. The banks and credit card companies charge really high interest.  The chance of you not paying them back is factored into the interest rate. They assume some people will simply not be able to pay.

The banks and credit card companies are not lending you money because they have your best interest at heart.  Your friend cares about you and wants the best for you. The bank wants to make money off of you. In fact, they make a lot of money.  Just last year bank stocks were up 36%. It is a very different relationship if someone is just lending you money to make more money, or if someone is lending you money because they care about you.  You are keeping your word with your friend or relative. You are just doing business with the bank.

COVID-19 – Coronavirus and the Bank

COVID-19 bankruptcy is going to take a toll on the banks.  However, it will not be anything close to the 2008 housing collapse.  One thing for sure, the Coronavirus is probably going to put you at odds with the bank.  So many people will be forced to miss paychecks that money will be short.  Whether you miss an automatic deposit from your employer, or you miss a credit card payment with your bank, there is bound to be turmoil.  Some people deal better with this conflict than others.

In these times of increased conflict, try to stay calm.  Many people have several questions regarding the Coronavirus pandemic.  The banks will be forgiving to some things during this Coronavirus financial crisis. However, remember, the bank is only talking about money, not you, personally.  If you find the collection calls too much to bear, there is a quick and easy way to deal with them.  Contact an experienced bankruptcy attorney to see what different debt relief options are available to assist you.

Immediately upon filing bankruptcy, there is an order entered by the Federal Court.  It is called an Automatic Stay order. It is a tangible order and has an official looking seal on it and everything.  What it effectively does is prevent anyone from ever talking to you about your debt again when you get a discharge. Nobody can call you or harass you into paying the debt.  Even reporting negatively on your debt is an attempt to collect a debt, and prohibited by the Federal Bankruptcy Court.

Contact Our Nevada Bankruptcy Attorneys When Times Get Tough

Remember, when times get tough, we can help.  Our Las Vegas bankruptcy attorney stops creditor calls immediately.  Also, we can stop lawsuits immediately.  Plus, we can stop garnishments immediately.  If you find yourself stressed out about the ramifications of the virus, we are here to help.

Nobody can predict when any one of us will need help.  Many people in Las Vegas and Henderson will need a COVID-19 bankruptcy.  Fortunately, the government has some programs. If we fall ill, even if we cannot afford a hospital, the government will help us.  Would you refuse to go to the hospital if you needed help? There is no reason to resist considering bankruptcy when you need financial help. Contact us today and see what steps you can take to get help.