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Natural Disasters like Hurricane Sandy can Lead to Increase in Bankruptcy Filings

Hurricane Sandy devastated some parts of the East Coast. Homes and businesses were destroyed. Some are left without a place to live. Some businesses will be closed for months.

Storm damage across a neighborhoodEarly estimates of the damage are in the billions, but the true financial impact may not be known for some time. The pace of the cleanup effort will impact businesses, jobs, and economic recovery.

For some, Hurricane Sandy and other natural disasters like it don’t just represent a loss of property. Natural disasters that cause as much damage as Sandy did can cause devastating financial loss that can lead to bankruptcy.

First, these natural disasters can destroy personal property and possessions. While some homeowners may be protected by insurance, many others only carry basic protection, which may not cover damages from a natural disaster. Still others may only be renting their homes, and may not carry renter’s insurance to protect against damages.

Not only can a natural disaster wipe out a person’s home, but it can also destroy valuable personal possessions. When the tally is totaled for the home, cars, and personal items, the damages could be hundreds of thousands of dollars. Few of us have that kind of money in our savings, and without good insurance to cover those damages, few of us would be able to withstand that kind of financial blow.

Second, as Hurricane Sandy showed, natural disasters can shut down businesses for months, leaving some workers without a way to earn a wage. Without savings, a few months without a steady income can be a financial blow to anyone. For some, it could mean losing everything.

Many who are in the path of devastating natural disasters like Hurricane Sandy may find relief from the overwhelming financial stresses through bankruptcy. Depending on the extent of the debts you face as a result of the natural disaster, the type of debts, and your income, you may be able to eliminate some of the debts and seek a fresh financial start.

North Carolina Bankruptcy Lawyers

At the Law Offices of James Scott Farrin, a North Carolina Board Certified Specialist in Consumer and Business Bankruptcy Law may be able to help you find debt relief through bankruptcy. Call 1-866-900-7078 for a free evaluation of your case.