- April 24, 2020
- Thomas Adam
If you are dealing with debt during the coronavirus outbreak, it is important to remember that you are not alone. It also helps to realize that there are some critical things that you can do to take control of any debt that you might have.
To help you take control over your debt during this difficult time, this article reviews some helpful reminders.
Maintaining Your Federal Student Loans
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, H.R. 748, was signed into law on March 27, 2020, by President Trump. This regulation suspends payments and interest on federal student loans with the United States Department of Education for six months or until September 30, 2020.
Payment suspensions are automatic and need not be requested. The Act additionally stops collection actions, wage garnishments, and other types of negative credit action during the COVID-19 pandemic.
Taking Control of Mortgages and Foreclosures
If you discover that you will have difficulty making your next mortgage payment, you should not hesitate to contact your loan service to discover what options you have available. Many people during the pandemic are eligible for a forbearance or other types of short-term immediate mortgage relief.
The CARES Act also established a 60-day foreclosure moratorium for federally backed mortgage loans. This moratorium addresses most residential mortgage loans in the country.
Additionally, Governor DeSantis has suspended all evictions and foreclosures in Florida for the next 45 days to make sure that residents remain in their homes during the pandemic.
Credit Cards and Other Loans
Many companies that offer credit cards including Capital One, Chase, and Wells Fargo have announced several types of assistance for consumers during the COVID-19 outbreak.
Some methods that people can use to take control of these types of debt during this difficult time include credit line increases and collection forbearance. Many financial institutes are also currently offering deferred payment and loan extensions.
Entering into Agreements With Creditors
Under the terms of the CARES Act, if a person agrees with a creditor to defer one or more payments, forbear a delinquent amount, make a partial payment, modify an existing loan, or receive any other type of assistance or relief, a creditor cannot report the account as delinquent to the credit report agencies.
To avoid this type of reporting, however, you must continue to satisfy the terms of whatever agreement you enter.
If you experience difficulty paying your auto loan during the pandemic, remember that many motor vehicle lenders are currently offering payment delays and other options to people who are experiencing difficulty making their car payments.
Some of the companies that have already announced car payment plans during the pandemic include Fiat Chrysler Automobiles, Ford Motor Company, General Motors, Nissan North America, Toyota Motor Sales USA, and Volkswagen of America.
Speak with an Experienced Bankruptcy Attorney
COVID-19 has left people facing many challenges including those related to debt. If you or a loved one needs the assistance of a bankruptcy attorney during this difficult time, do not hesitate to contact Adam Law Group today to schedule a free case evaluation.