Keep on Trucking: Overcoming the Financial Challenges of the Trucking and Logistics Downturn

Hi, I’m Emil Fleysher, a Florida bankruptcy attorney and the owner of Fleysher Law, PA. If you’re a truck driver or work in the logistics industry, you’ve probably felt the financial strain that has hit the industry in the last few years. After the COVID-19 boom, freight rates dropped, fuel costs skyrocketed, and many owner-operators have struggled to keep up with loan payments, equipment costs, and day-to-day expenses. If you’re feeling the pressure, you’re not alone.

The good news? There are options available to help you get through tough times and back on the road to financial stability.

Step One: Assess Your Financial Situation

The first thing to do is take a close look at your finances. Whether you’re an owner-operator or a company driver, understanding your income, expenses, and outstanding debts is crucial. Prioritize essential expenses like your mortgage, truck payments, insurance, and food. If credit card debt, personal loans, or unpaid taxes are piling up, now is the time to evaluate your options.

Step Two: Avoid Common Mistakes

Financial hardship can lead to snap decisions that cause more harm than good. Here are some key mistakes to avoid:

• Draining retirement savings: Your 401(k) and IRA are protected in bankruptcy, meaning creditors can’t take them. Don’t empty your retirement accounts to stay afloat temporarily.
• Using high-interest credit or payday loans: Short-term loans with high interest can trap you in a cycle of debt that’s hard to escape.
• Delaying action: Many truck drivers wait too long before seeking help, hoping the market will improve. Addressing your debt now can prevent bigger problems down the road.

When Bankruptcy Makes Sense for Truck Drivers

If you’ve exhausted your options and still find yourself buried in debt, bankruptcy may be a solution. Many truck drivers hesitate because of common misconceptions, but bankruptcy is a legal tool designed to help hardworking people get a fresh start.

• Chapter 7 Bankruptcy: If your income has dropped and you’re struggling with unsecured debts like credit cards and medical bills, Chapter 7 may wipe them out completely. This is ideal for drivers who have minimal assets outside of necessary tools and vehicles.
• Chapter 13 Bankruptcy: If you want to keep your truck and restructure your debt, Chapter 13 allows you to create an affordable repayment plan over three to five years. This is often a great option for owner-operators who need to catch up on payments without losing their rig.

Timing Considerations for Filing Bankruptcy

Truck drivers need to consider a few important factors when filing for bankruptcy:

• Fluctuating Income: If your income varies due to load availability, filing when your earnings are lower could help you qualify for Chapter 7.
• Asset Protection: If you own your truck outright or have valuable assets, planning your bankruptcy filing carefully can help protect them.
• Recent Purchases or Transfers: If you’ve recently bought equipment, transferred money, or refinanced loans, these transactions could impact your bankruptcy case.

Let Our Florida Bankruptcy Attorney Help You

If you’re a truck driver struggling with debt, you don’t have to go it alone. At Fleysher Law, PA, I’ve helped thousands of hardworking people find relief from overwhelming financial burdens. Bankruptcy is not a failure—it’s a tool that can give you a second chance.
Call me today for a free consultation, and let’s talk about your options. Together, we’ll find the best path to get you back on the road—without the weight of unmanageable debt holding you back.