An article by firm shareholder Jeffrey S. Berlowitz was featured as the expert guest commentary column in the Business Monday section of today’s Miami Herald. The article, which is titled “Community Associations Must Cope with a Coming Wave of Unit-Owner Bankruptcies,” focuses on how associations must be prepared to contend with an expected spike in bankruptcy filings by those who lost their jobs and businesses due to the pandemic. His article reads:
. . . Even with the massive COVID-19 economic fallout, bankruptcy filings in 2020 so far trail those from last year, thanks in large part to the federal stimulus package and state moratoriums on foreclosures and evictions. The additional $600 per week in supplemental unemployment assistance, on top of the national average state unemployment benefit of $340/week ($275 per week maximum for up to 12 weeks in Florida), meant that many individuals who lost their jobs were suddenly receiving more money than when they were working.
This supplemental federal benefit expired in July and was replaced by an allocation from the Federal Emergency Management Agency for $300 or $400 per week, depending on states’ participation and contributions, which was paid retroactively from August 1 for up to six weeks. With no more federal aid apparently forthcoming, economists predict consumer bankruptcy filings are bound to rise.