Higher Prices and Consumer Bankruptcy

In South Florida, many consumers have started to worry about the possibility of grocery prices rising significantly over the coming weeks. News media outlets, as well as notable economists, have suggested that the tariffs ultimately are likely to result in a rise in consumer prices as businesses pass on added costs to consumers. If you are already worrying about debt, the prospect of higher prices and the possibility of an increase in inflation may be particularly stressful. If you were already considering a personal bankruptcy filing, you may be thinking about it more seriously now.

Is now the time to file for consumer bankruptcy? For many Floridians struggling with debt, it could be the right time to begin preparing a bankruptcy petition and taking the necessary steps to file for bankruptcy. One of our West Palm Beach bankruptcy lawyers can tell you more.

Considering the Possibility of Consumer Prices Rising 

As you think about the debt you owe and any purchases you may need to make — from small and routine purchases at grocery stores to major purchases in your home, for example — it is important to understand what goods are most likely to rise in cost.

According to a report from CBS News, consumers should plan for the possibility that the price of electronics may rise. This includes smartphones and television sets. Motor vehicle prices are also expected to increase, according to the report. Even American-made motor vehicles often have imported parts, which means those parts will be subject to the tariffs. In total, the report suggests, “American consumers could end up paying an additional $2,500 to $5,000 for the lowest-cost American cars, and up to $20,000 for some imported models.” Clothing, shoes, and other goods sold in stores like Walmart and Target are likely to go up in price, as will a lot of furniture. If any of these goods are currently, or will soon be, necessities for you or your family, they could end up costing more.

Bankruptcy Options for Consumers in South Florida 

If you are considering personal bankruptcy, it is important to understand the options available to you. Generally speaking, consumers tend to consider either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 is a liquidation bankruptcy, while Chapter 13 is a reorganization bankruptcy. In a liquidation bankruptcy, the debtor’s nonexempt assets are liquidated and they receive a discharge of eligible debt, whereas a Chapter 13 case involves a repayment plan over three to five years and no assets are liquidated.

Chapter 13 is typically known as a “wage earner’s plan,” whereas Chapter 7 requires a debtor to show that their assets and income are limited enough to qualify for a liquidation bankruptcy.

Contact a West Palm Beach Bankruptcy Lawyer Today for Assistance 

Consumers throughout Florida are concerned about the possibility that prices for a wide range of consumer products — from food to other necessities — will increase in the coming weeks and months. If you are concerned about debt and want to determine whether it could be smart for you to file for bankruptcy now, you should seek advice from an experienced West Palm Beach bankruptcy attorney at Kelley, Fulton, Kaplan & Eller.

Sources:

cbsnews.com/news/which-products-most-affected-tariffs/

time.com/7274651/why-economists-are-horrified-by-trump-tariff-math/

law.cornell.edu/uscode/text/11