Coronavirus changed almost everything. Dealing with this virus was actually tough for all the countries. Spreading drastically in the United States and other countries, this pandemic came as a nightmare for individuals. The COVID 19 was harmful and this lead to the closure of all main sectors. Other than health sectors, other businesses like restaurants, gyms, and theatres were strictly closed. The effects of local government actually managed it appropriately. Even though in recent months the cases of coronavirus have reduced but it has affected a large population financially.
This virus results in an economical halt. The instant closure and restriction on several sectors made it difficult for individuals to survive. A large portion of the population was left with no proper income source. Closure of businesses impacted the daily lives of individuals and made it hard for many to pay for their basic living expenses. Even when it was impossible to stop the after-effects of coronavirus, the government took several measures to manage the finances. Tucson Bankruptcy Attorney can help individuals meet financial issues appropriately.
How to deal with financial issues caused by Coronavirus?
There is a basic concept one could opt for dealing with financial issues. Every expense must be prioritized. Define your obligation and know which one to pay first.
One must understand that expenses such as food and shelter are the basic needs for everyone. It is of no use to pay for cars when you lack in providing basic food to your family. When you can define your utilities like your rent and shelter, the second is to pay for loans.
Differentiate between different loans you need to repay. Pay for due house lease first and then opt to pay for car debts. After all, you cannot sleep in your car. The last is to pay for a credit cards bill.
There are different ways; an individual can deal with different types of debts. These debts can be:
Mortgages are covered under the CARES Act. According to which lenders have to provide help in case of financial issues due to coronavirus. In such cases, it is better to contact a Mortgage Company to enjoy payment deferral or modification in payment. There are many options that include suspension of mortgage payments for at least 12 months, removal of delayed or late fees, and suspension of eviction proceedings or foreclosure.
In case, you cannot find any suitable option with your lender, you get enough time to plan your payment till the lender plan for the final forecloses of your home. According to Chapter 13 bankruptcy, any arrears on the mortgage are cured through Chapter 13 bankruptcy over time.
Even when there were restrict evictions implemented by federal or state regulations during the COVID-19 period, there were no particular terms that stated anything about the payment of rent. There were no laws that entail how landlords will receive the rent after the restrictions expire.
In such cases, the owner could offer some deferrals but if they do not offer an alternative, the rent payer was left with only one option to cancel the lease and search for the cheaper option. This is a little difficult and in such cases, another alternative is available in Chapter 13 bankruptcy. According to this, one can keep the complete property so as to catch up on missed rent payments over time. This is quite different when compared to Chapter 7 bankruptcy.
3) Car payments and other secured loans
In case you are suffering from financial issues, you can contact the lender to know about the payment alternative to repay the loan. Many companies may offer several benefits.
As per Chapter 13 bankruptcy, one can enjoy the benefit of stretch-out payments. This can allow increasing the payments over up to 5 years. This also brings an option of modifying monthly payments and reducing the initial amount to be paid. One can decide the alternative depending upon the necessity of the car and other secured loans.
Tucson bankruptcy lawyer can help you pay your tax liabilities by modifying the payment cycles. In case, you are facing financial issues, you can contact the taxing authority to get the benefits of delayed payment on your tax liabilities. If the authorities do not provide any help, you can check for the options from Chapter 13 bankruptcy which provides the benefit of modifying the tax payments.
The recent pandemic proved to be misery for everyone. After almost a year, everyone is trying to face its consequences. One of the biggest drawbacks of Coronavirus is the financial issues that every family is facing today. While dealing with the financial losses caused due to coronavirus, it is important to remember that any pandemics is temporary and just like other pandemics, this will pass too.
In such cases, it is important to plan everything so as to face this bad situation in the best possible way. By following simple tips, one can easily manage their finances to face such situations. Tucson Bankruptcy Lawyers can help repay loans and other debts in a well-managed way with benefits from Chapter 13 bankruptcy.