When will the Band Stop Playing

Headline from a recent Wall Street Journal Article: “Most Big Debt Collectors Backed Off During the Pandemic.”

When Covid-19 hit the economy, most debt collectors gave borrowers a break, cutting back on lawsuits amid lockdowns, closed courts, and loan-forbearance initiatives. For some, this has given a little breathing room to get themselves on top of their finances and in a better position when we come out of the pandemic. For others, it only has had the effect of snowballing balances as unpaid interest has become principle making the amount owed insurmountable.

Thankfully we are starting to see the light at end of the tunnel of the pandemic. As more and more people are vaccinated, and states begin to re-open and normalcy returns, these companies will get back their aggressive collection efforts.

In many cases, bankruptcy is a great option to clear the debt that you cannot pay.The attorneys with the Bond & Botes Law Offices can help by explaining your options so the end of the pandemic is truly a fresh start.

Government Extends Eviction Moratorium For 3 Months. Here’s What Renters Should Do

The Centers for Disease Control and Prevention (CDC) has given a reprieve to renters who had been facing the end of the nationwide eviction moratorium at the close of March. The CDC on Monday extended that moratorium deadline to June 30. The moratorium was put in place last fall to curb the spread of Covid-19 and has been considered successful by housing and health experts.

What if you owe back rent and cannot pay.

Back rent is treated as unsecured debt in bankruptcy. Just like medical bills, credit card debt, and personal loans, you can include your back rent in your bankruptcy. In a few rare situations, back rent is treated differently, but in most cases, you will be able to discharge your back rent in bankruptcy.

If you are facing eviction, bankruptcy might be the right choice for you because it will delay the eviction. An automatic stay will begin once you file for bankruptcy. The automatic stay stops all creditors, including your landlord, from trying to collect a debt that is owed to him or her. The eviction will typically be delayed until such time as your landlord obtains relief from the bankruptcy court’s automatic stay.

Before deciding to file for bankruptcy or break your lease, you should consider factors such as your relationship with your landlord, your emotional attachment to the place that you live, and the reality of your debt situation. If you need help determining the best option for your situation, please feel free to contact us to arrange a free initial consultation with an experienced attorney.

Have You Missed Mortgage Payments, Gotten a Forbearance, or Some Other Consideration from your Mortgage Servicer as a Result of the Pandemic? What Happens Now.

Many struggling homeowners have been provided with a forbearance on their mortgage payments as a result of the COVID pandemic. After their period of forbearance ends, those who can afford their old mortgage payment hope to pick it back up again, tacking the unpaid amount to the end of the mortgage. Those who can’t afford to do this may seek a modified loan with a lower monthly payment. Homeowners unable to make ends meet under any of these options will face a likely foreclosure which can result in the loss of their homes.

If you are unable to modify your mortgage or meet the terms of your forbearance agreement, chapter 13 bankruptcy may be the right solution to save your home or at least buy time and options. Bankruptcy doesn’t magically put an end to a foreclosure action, but it can stop the clock long enough to work out the best solution for you. If you have sufficient income, Chapter 13 bankruptcy may offer a long-term solution. In a Chapter 13 plan, past-due balances are paid in monthly installments across a three to five-year period.

Talk to an Experienced Bankruptcy Attorney

The attorneys at Bond & Botes have devoted decades to helping people resolve debt and move forward into more stable financial futures. We offer free consultations to people facing foreclosure, wage garnishment, repossession, and other financial challenges. You can schedule yours right now by calling 1-877-581-3396 or by filling out the contact form on this page.