Did you know that up to 66% of people who file for personal bankruptcy cite medical issues as a key contributor to their financial downturn. Now that Coronavirus disease (COVID-19) has been declared a Global Pandemic, the negative effects to the global, national, and the Miami and South Florida economy are imminent and will be immediate.

While the continued increasing cost of health care has historically been a trigger for new bankruptcy filings, the research shows that the implementation of the Affordable Care Act has not improved things. What most people do not realize, according to one researcher, is that their health insurance may not be enough to protect them.

Filing for bankruptcy is often considered a worst-case scenario for many Americans. A recent study found that almost 67% of all bankruptcies were tied to healthcare issues —either due to high costs for care or loss of work. Well over half a million families turn to Chapter 7 or Chapter 13 bankruptcy every year because of medical bills and sickness.

Other factors for filing bankruptcy include mortgages that are unaffordable or foreclosure, followed by overspending and debt, student loans, divorce and separation.

Many medical experts suggest that the corona virus may take as long as 4 weeks to fully recover. What will happen to the average American employee who has to miss up to one month of work? Many workers don’t receive a paycheck when they miss work. For many families, mortgage payments and car payments will not be paid.

If you happen if you live in an area that is quarantined for 4 weeks? Are you able to work from home? What will happen to the people who cannot?

As this economy comes to a devastating halt because of the corona virus, layoffs are inevitably going to take place. Even if you have are perfectly healthy, you most likely will still be affected by the economic fallout.

Eventually, this pandemic will end and we will all bet back to our daily lives and return to work. This is where a Chapter 13 is going to be crucial in helping people recover.

For someone who may be inundated with medical bills, a Chapter 7 filing can be an option. With a Chapter 7 bankruptcy, you can remove all of your unsecured debt, as long as you qualify.