Coronavirus and Debt Relief

Coronavirus and Debt Relief

In 2020, the government enacted many measures designed to provide temporary relief for people whose jobs disappeared overnight due to the COVID-19 pandemic, but now those programs are expiring. People did not always have to make rent or student loan payments. Companies were more lenient than usual about late payments on mortgages, credit cards, and other loans.

Those debts did not magically disappear, however. Now that the economy is slowly reopening and many people can return to their jobs, these creditors want their money. A year or more of missed payments might seem impossible to tackle at one time. A Georgia bankruptcy attorney can help you develop a plan for your individual situation and explain coronavirus and debt relief.

You Are Not Alone

When a person falls behind on payments of essential items like rent and auto loans, it is easy to feel like a failure. You should not be too hard on yourself if you have struggled financially during the pandemic. Many people have, and are still, struggling to deal with debt that was not their fault. Even people who were able to continue working by shifting from the office to working remotely at home had increased expenses because of the pandemic. If your internet cost increased, for example, you know what I mean.

We all need daily supplies that have now skyrocketed due to price-gouging. Simply getting groceries and other stuff delivered costs much more. Everyday life has been turned upside down. Many families now rely on food pantries just to put meals on the table every day. People have to pay for food and other essentials with credit cards when they miss a paycheck, or their wages were inadequate for the increased costs.

Now is the time to rebuild your financial condition. You need to know how to escape the mountain of debt caused by the coronavirus pandemic. Not your fault!

Be Proactive

Banks, credit card companies, and other lenders like it when their account holders reach out to them and ask for a payment plan. Taking the initiative can help you avoid some fees and penalties. 

Also, managing your debt can help you feel more in control of your life and less stressed. Rather than being afraid to open the mail, answer the phone, or check your email can cause extreme anxiety on top of the emotional distress of the pandemic. Countless Americans lost loved ones due to this virus, whether directly or indirectly. Being proactive about your financial future can restore a sense of hope.

Government Relief Programs

The federal government passed legislation that provided financial relief for Americans during the pandemic, including stimulus checks. People who are still unemployed can get additional unemployment benefits temporarily. Some people can get child tax credits and health care tax credits. Our state and local government agencies offer additional economic support for people in need. 

Avoid Scammers

Sadly, there is no end to the number of con artists who will prey on people when they are in their most vulnerable condition. It will only make things worse if you get ripped off by scammers who promise to help you qualify for government benefits, offer fake investments in COVID-related products, or claim that they can get your debt erased if you give them your personal financial information.

However, it can help if you work with a legitimate professional who can help you navigate these challenging times. A Georgia bankruptcy attorney can explain your options and help you understand which strategy would be best in your situation. Contact us today.