Nearly 40 Percent of Americans Plan to Use Stimulus to Pay Debt, Credit Expert Says Bankruptcy Better Option

PHOENIX - March 31, 2020 - (

​​​In the midst of the Coronavirus Recession, a nationwide credit-expert and the founder of is telling Americans to stop paying bills and prepare for bankruptcy.

“This situation is precisely why bankruptcy laws were created,” said Philip Tirone, creator of a credit-rebuilding program and 720 System Strategies, a bankruptcy marketing firm.

“People think bankruptcy is a last resort. In reality, it is a lifeline designed to help save people from disaster,” he said.

Tirone surveyed more than 80,000 students in his credit-score improvement program, many of whom lost thousands of income dollars due to the Coronavirus Recession. Yet, 34.95 percent plan to spend their one-time stimulus check and twelve-week unemployment benefits on paying down debt.

“This is the wrong move,” said Tirone. “We don’t know how long this will last or how much worse it will be. You might run out of money. In three months, the checks stop coming. Then what?”

“Spend your money on food and essentials. Save anything extra.”

Tirone said people should make the minimum payments on debt obligations only if they have enough money to protect their families. Otherwise, he advised people to call their creditors’ hardship departments and request revised payment plans.

“Take it from someone in the credit-improvement business. If ever there was a time to default on your bills, now is that time. Prioritize feeding your family over paying your bills and protecting your credit score.

“Your credit score and debt obligations are not important right now. Your family’s safety is.” 

Tirone predicted that the number of 2020 consumer bankruptcies will skyrocket past the 2010 high of 1.5 million.

People are afraid of bankruptcy because they think they will be unable to buy a home or a car, but this is untrue, Tirone said. 

“If you rebuild your credit after your bankruptcy, you can have a normal life 12 to 24 months after the discharge or confirmation,” said Tirone. “People have it wrong. They think bankruptcy is the ball and chain, but bankruptcy is actually the way to reset and eliminate the ball and chain.”

Beyond that, declaring bankruptcy opens the door to rebuilding credit.

“People think their credit scores will be ruined if they declare bankruptcy, but this is also untrue,” said Tirone. “Your credit score is ruined when you make late payment after late payment. Once you declare bankruptcy, you can start paying your bills on time, and your credit score can be 720 or higher 12 months later.” 


Philip Tirone is the CEO of 720 System Strategies, a consumer bankruptcy marketing company, and creator of 7 Steps to a 720 Credit Score, a credit rebuilding program offered by 

Philip Tirone​ |​ | 602-691-7570​

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