As the United States faces the global pandemic of the Covid-19 virus, we are seeing the effects everywhere. The stock market continues to decline, oil prices remain depressed, all major sports have been canceled, large plants and factories have temporarily closed and many nonessential businesses have been forced to close or significantly modify operations. The possibility of a recession worse than 2008 looms. The average daily lives of Americans have also dramatically changed as “social distancing” has been added to our lexicon.
Concerns over the economic impact of this virus are being felt by most Americans. The closure of restaurants, bars, salons, gyms, and other public-facing businesses has left many individuals unemployed. In Kentucky, the waiting period for unemployment benefits has been waived. The Governor has encouraged landlords to not proceed with evictions and banks to work with individuals.
The federal government has been working on a series of relief packages that include paid sick leave for workers and student loan relief. The IRS has delayed tax filing deadlines until July 15th. Disaster relief through loans is available to small businesses through the Small Business Administration (“SBA”). With the halt of travel, the airline and cruise ship industries will certainly need some form of bailout relief.
Looking Forward
As the virus is expected to be a prevalent concern until as late as July or August, the full economic impact of Covid-19 is unclear. Due to this uncertainty, as an individual you can reach out to your mortgage company about options. HUD and FHA have temporarily halted foreclosures. During this time reaching out to your creditors about delaying payments or waivers on interest and late fees is highly advisable. Small business owners should investigate their eligibility for the SBA loan relief or reach out to lenders about forbearance on loans pending reopening of business. If businesses are forced to remain closed or operate at reduced levels, it is very likely that we will see a dramatic increase in individual bankruptcies and small business bankruptcies.
About DelCotto Law Group
DelCotto Law Group is Kentucky’s asset protection law firm known for its commitment to the lifetime success of its clients. With offices located in Lexington, Louisville and Danville, DLG serves Kentuckians with complicated financial matters, especially in the areas of bankruptcy and complex litigation. For more information please call (859) 231-5800, email [email protected] or reach us on our contact page.