Life changed for all of us in March. Governor Wolf’s stay-at-home order, issued to protect the public from the coronavirus, was about to have immediate and unintended consequences. Consequences that none of us saw coming. With little time to fully process the change that was occurring, businesses and families scrambled to comply with orders. Face masks, social-distancing, and hand-sanitizer have become part of our every-day lives. While some of the restrictions have eased, we are all keenly aware of the “new normal” and the devastating damage left behind as result of efforts to manage this pandemic. Debt.
The burden of debt is heavy. Last month, the federal government reported the total debt balance at 14.3 trillion dollars. To put this in perspective, this is roughly 1.6 trillion dollars higher than the figures reported during the Great Recession! Mortgage balances and unemployment figures continue to remain high. Alternatively, Auto-loans, credit card balances and consumer spending are down. To combat this, federal and local governments have put several plans into place and bankruptcy courts remain open.
Freeze on Evictions & Foreclosures
Governor Wolf has extended his moratorium on evictions and foreclosure proceedings through July 10, 2020. On the other hand, it is important to note that rent and mortgage payments are still due. Landlord and lenders, however, are prohibited from pursuing eviction and/or foreclosure measures. Attorney Dan Foster of Foster Law Offices warns, “If you can make your payments, you should. When the order is lifted the banks will be aggressively pursuing foreclosures and repossessions”. Several lenders are urging customers to reach out if they need help. Wells Fargo is asking client’s who are struggling to give them a call. According to their website, they will review the account of their customers on a “case-by-case basis” for fee waiver, payment deferral, and eligibility for other expanded assistance options.
Bankruptcy Courts are Open
Bankruptcy Courts continue to remain open and operational to assist individuals seeking debt relief. “I am meeting with clients, filing cases, and attending hearings just like before”. Foster continues, “the only difference is that the hearings and meetings are via telephone or virtual video software”. If you are struggling with credit card debt, falling behind on your vehicle or mortgage payments, accumulating credit card debt, bankruptcy may be a good option to consider.
The automatic stay in bankruptcy stops the collection process. This includes any pending judgments, foreclosures, repossessions, and the harassing calls from creditors. Further, bankruptcy allows individuals to virtually eliminate unsecured debts. Individuals who meet income guidelines can eliminate medical bills or credit card debt. Most Pennsylvania bankruptcy attorneys offer free consultations, so you won’t have to shell out any money until you know for sure if it makes sense for your individual situation.
Bankruptcy Lawyer Needed
If you are looking for a lawyer with experience in the bankruptcy field, I hope your journey leads you to our office. For more information on filing bankruptcy in Pennsylvania, please contact us via our web form or call 877.673.3282 to schedule a FREE CONSULTATION with Attorney Daniel Foster.
Disclaimer: Foster Law Offices, LLC is a debt relief agency, helping people file for relief under the United States Bankruptcy Code. The information contained in this article is provided for informational purposes only and should not be construed as legal advice on any subject matter.
