In the face of the deadly coronavirus contagion and the significant effects that the spread will continue to have on the global economy, the U.S. government took some extreme cautionary measures. In addition to declaring a national emergency and deploying Federal Emergency Management Agency (FEMA) and National Guard relief, the federal government passed the CARES Act (the Coronavirus Aid, Relief, and Economic Security Act) on March 27. This act provides financial support to individuals struggling with little to no income during these uncertain times. The act may help to an extent, but the longer the pandemic continues, the harder it will be for many to keep making ends meet. If you are unable to make debt payments each month, you can find other sources of debt relief in Marshall, MN. With the help of Behm Law Group Ltd., you can use bankruptcy as one option to secure debt relief and long-term financial stability.
Bankruptcy can seem like a drastic option, even for those struggling significantly, but it’s a government-sanctioned process that has helped countless millions of individuals and businesses find their way through a recession like the one we, as a country, are working through now. The CARES Act offers some more immediate options for debt relief to all individuals as we continue to work through state lock-downs.
CARES Act Provisions
- Mortgages: Anyone struggling to meet monthly mortgage payments has options for relief. Many homeowners are eligible for forbearances that provide short-term relief of their mortgage debt. This means you may skip some payments and spread the amount skipped throughout future payments. You may also be able to make a lump sum payment on missed payments later. In addition, many major mortgage providers—including Freddie Mac, Fannie Mae, VA-guaranteed, FHA-insured, and some federally backed lenders—have an imposed 60-day moratorium on foreclosures.
- Student Loans: The CARES Act effectively suspended all collection activities and interest accrual on federal student loans for the next six months (until September 30, 2020), and these suspensions will be applied automatically. This act also suspends the reporting of negative credit information on credit reports, wage garnishments, and other collection actions on behalf of student loans during the national emergency.
- Auto Loans: While there are no official federal rules with the CARES Act, many auto lenders are providing leniency to debtors. If you are struggling to make payments on your car loan, contact your loan provider. There is a good chance you’ll be able to delay payments or make other debt payment modifications.
- Property Tax: Those with property tax debt or who are facing foreclosure because tax debt delinquency might be able to take advantage of a moratorium many counties are implementing. That moratorium varies by county, so check with your county treasurer’s office for more information.
In the second part of this blog, we’ll cover the additional resources the CARES Act offers for debt relief in Marshall, MN, during the coronavirus pandemic. To learn more about the options bankruptcy provides, contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com.
