As COVID-19 continues its devastation across the country, further relief from the government remains in limbo. With the $600 per week unemployment supplement coming to an end just days after the moratorium on evictions ended, the U.S. is facing a perfect storm for financial disaster.
The CARES Act provided relief and protection to the American people to help during this tumultuous time. Relief that included an extra $600 per week for most of the millions of people filing for unemployment benefits, expired on July 31st, 2020. An extension on these payments or a replacement figure has yet to be decided upon as some lawmakers see the supplement as paying workers to stay at home because many of these people are making more on unemployment than they do at their usual jobs. Under normal circumstances, this could be the case. However, research suggests otherwise, that the supplement is actually putting money into the economy and it will be devastated without it.
Also included in the CARES Act was a moratorium on evictions of renters living on properties with government-backed mortgages. The moratorium kept 12 million people from getting evicted and expired on July 25th. States chose their own guidelines and deadlines for not allowing evictions and some have already expired while others have been extended into the fall.
As the latest relief package gets tossed back and forth in Washington, one thing’s for sure: people are struggling now. We’re living through unprecedented times that could cause financial collapse for consumers and businesses alike. Before the dust clears on this pandemic, it’s expected that this country will see record bankruptcies as people find themselves in a deep financial hole from which they can’t climb out.
The CARES Act also included some provisions to bankruptcy laws to reflect the current circumstances because of the pandemic. Two main changes were the exclusion of any pandemic relief being considered as “disposable income” in bankruptcy filings and the ability to renegotiate repayment terms that have already been confirmed for up to 7 years instead of 5. This would extend the term and may lower the monthly payments to be more affordable.
Whatever is decided with the next relief package, for many people, especially those with high debt before the pandemic, it won’t be enough to dig them out of debt. This is where Miller, Hollander, & Jeda can help.
For more than 35 years, the attorneys at Miller, Hollander, & Jeda have been helping consumers in Southwest Florida get a fresh financial start. We look at your particular financial situation and determine if and which bankruptcy is right for you. We are dedicated to finding the right solution and always represent our clients’ best interests as they find their way out of a difficult situation.
If COVID-19 has left you with high debt and you’re having difficulty paying your bills and would like to know the pros and cons of bankruptcy, call Miller, Hollander, & Jeda today for a free consultation at (239)775-2000.