As more and more people choose or are forced to stay at home, businesses and their employees alike are struggling financially. If the situation continues the way it has been for much longer, many of Americans may need to consider filing for bankruptcy in Scottsdale. Decreases in revenue can be expected across all industries, but certain areas can expect to be hit especially hard by the spread of coronavirus.
Airlines
Recreational travel is currently discouraged, so airlines are currently grounding planes or flying at less than full capacity. Airlines are both operating in a partial shutdown mode, and having to refund millions to customers who don’t want to travel in the midst of this crisis. Those who do choose to travel can purchase their tickets at rock bottom prices. Airlines across the world have petitioned their respective governments for bailouts, saying they won’t survive without one.
Automobile Manufacturing
Car sales have halted almost entirely in China. Not only are workers staying home to avoid infection, car parts are harder to come by and demand for new vehicles is down. Some car manufacturers, especially those in China, are shut down. In Europe, Fiat and VW have been shut down. In the U.S., GM and Ford will be closed at least for the rest of the month. Public transportation is especially unreliable currently, but consumers wary of an impending economic downturn aren’t going out to buy new cars.
Hospitality/Tourism
Major draws to cities such as sporting events and Coachella have been postponed or canceled. These types of events can bring hundreds of millions to the host city in tourism industry. Not only is no one traveling, but nationally gatherings of ten or more are discouraged, and many areas have enacted an emergency status restricting dining out to takeout or drive through. Bars, restaurants, and hotels are being hit hard. Even worse, many of the employees in the sector survive on tips. Without customers to supplement their reduced minimum wage, this group will be one of the first to suffer financially. Many individuals will be filing for chapter 7 in Scottsdale and Scottsdale´s chapter 13 in the following days to come. Larger companies in this industry are asking for government bailouts, arguing that they will have to lay off employees, and the cost of their unemployment will be greater than the bailout. It is unsure if these companies are offering to pay their employees’ full wages during this period with the bailout money. This might be terrible considering many of these individuals already had credit card debt.
Medical
The news is plastered with images of doctors in hard-hit areas with faces bruised from their face masks after a long shift treating coronavirus patients. However, hospitals and medical offices in less-affected are canceling non-essential procedures for safety purposes. The high earners at these offices, e.g., dentists, physical therapists, etc., will probably be fine. The hygienists and assistants who make less will struggle with reduced or no work for an indefinite period.
If you are currently working in one of these sectors of the coronavirus, or have recently lost your job and are facing wage garnishments, don´t state to call our Arizona Debt Relief Attorneys. Please know, there are options available to you. Assisting people with debt in a time of need is our business. Call us today at (480) 448-9800 for a free debt evaluation and advice on options you may have in the wake of the COVID 19 pandemic.
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