Money Problems and COVID-19
Four weeks ago most people have never uttered the word “coronavirus” or “Covid-19” today it’s used in our everyday language. With half the population either out of work or working from home the economic effect is being felt by everyone, every day in every living room.
We worry about money in good times but today there rages a fear its front and center and causing emotional and economic distress. Having been a bankruptcy lawyer for over twenty years I deal with financial crisis’s on a regular basis. If you are fearful and worried about your financial future here are a few ideas that might help in this tying time:
Health and Safety
Make sure you and your family stay safe and follow compotent health care professions and sane community leaders. In near term crisis focus on food, medicine and shelter. Once the basics are covered then start to prioritize your other obligations. For example I would next look to cover your insurance and auto loan paymentss. After those debts are squared away then consider payments on past medical bills, credit cards and student loans.
Most Everyone is in the Same Situation
Most of this country cannot survive more than a few weeks without a paycheck. As of this writing million of people just missed their first paycheck. So keep informed on the number of federal and state programs that are quickly being formulated to help. Stay up to date on not only the medical news but the financial news to see what options you may have available to you.
Right now programs are being introduced all over the country to help however not all the announced programs apply to everyone. (Most are state or city specific so before you skip a mortgage payment you might want to make sure the program you have heared about actually applies to you.)
- Bans on evictions, foreclosures, and utility shutoffs
- Restrictions on negative credit reporting
- Mandated extensions of repayment on existing debt
- Bankruptcy code changes
- Partial or total forgiveness of student loan debt
- Low cost loans or grants for small businesses
- Penalty-free late payment of income and employment taxes
- Individual companies have offered free or reduced rate internet access; free online books and courses; on line exercise classes; and the list goes on.
Future
Time will tell just what the proposed remedies actually look like. I know things can often look bleek but that is usually just before the solution is found. Having been though the 2000 Tech Financial Crisis, the 9/11 Financial Crisis, the 2008 Housing Crisis I have a bit of understanding a knowledge on how this things work. My office is here to help.
If you have money problems and COVID-19 has caused you to contemplate bankruptcy for yourself or a business give us a call. In Utah we help you make a decision based upon you specific situation and our analysis of probable outcomes given years of experience in the bankruptcy world. We are now offering – what I never thought I would offer – telephone or video consultations. Call us at 801-221-9911.