Inflation Driving a Flood of New Bankruptcies

Inflation is incredibly high, and it’s impossible to ignore. Everywhere you turn, someone has a comment—the news, social media, people you make small talk with. Inflation is just up past 8.5%, putting it at the highest it’s been in 40 years. This sends a ripple through every part of the economy and is expected to result in a wave of bankruptcies.

What does this mean for you? If you’ve been treading water financially, it may be time to get out from under your pile of debt and get a fresh start. Learn more about bankruptcy options by calling Padgett & Robertson at 251-342-0264 to set up a consultation.

Trouble is Looming

The winds of change are blowing, and people are worried. COVID-19 has permanently changed many aspects of American society, changes we’re seeing in many other parts of the world. This affects investors, business owners, consumers, and workers at every level.

Legal matters that have been stagnant for years are finally moving through the court system, and those who have been putting off debt repayment or rental payments due to COVID-19 are being forced to face the music. Commercial real estate lenders are finding themselves stuck with blocks of empty office buildings as more workers choose to work from home permanently. Food costs and gas costs are rising, and there doesn’t appear to be an end in sight.

The World Returning to Normal

A large part of this is driven by the world “getting back to normal” as COVID-19 recedes. The issues that plagued the world during this time haven’t disappeared, and supply chain issues remain.

For some, this has pushed them to their financial breaking point. They may have been barely getting by before, and gas prices suddenly hitting nearly $6 per gallon and food prices jumping dramatically are now too much to bear. While this may all settle down in the long run and find some balance, that doesn’t help people who aren’t getting by right now.

Preparing for What Comes Next

How can you prepare for what comes next? It’s time to take a long, hard look at your finances. For those who have gotten through the COVID-19 time by maxing out their credit cards, borrowing from loved ones, skipping payments to get by, and shuffling maxed-out card balances to new cards, this might be where that all ends.

Banks are cautious about lending money and they’re coming to claim what they are owed. This is a good time to think about how you plan on making the most of your finances in the months and years to come, and what goals you’d like to reach.

Is Bankruptcy the Right Choice for You?

If your debt has been steadily growing over the last few years, you feel a sense of dread every time you open up your credit card bills, or you lay awake at night wondering how you are going to make your money last through the next month, it may be a good time to explore bankruptcy. Don’t let pride keep you away from an option that could change your financial future and give you the chance to hit the restart button on your debt load.

There are multiple bankruptcy options, each with its own set of requirements. Before you make a final decision either way, it’s recommended that you connect with a bankruptcy attorney in Mobile, AL. A review of your current debts, assets, income, and overall financial status can help you understand your current situation. Sometimes, you just have to see the cold, hard numbers associated with your debt to know exactly what your next step should be.

Explore Your Options with Padgett & Robertson

At Padgett & Robertson, we know how difficult inflation and an uncertain economy can be for consumers like you. When even necessities like gas, food, and rent are tough to cover, it’s time to look into your options for protecting your financial future. If you are considering bankruptcy, we’re here to take a look at your finances and help you make your next move. Schedule a consultation now by calling us at 251-342-0264 or sending us a message online.