Acquired debt is enough to keep anyone up at night. Debt compounded by the current world economic situation brought on by the coronavirus pandemic is even more of a nightmare. If you are facing financial woes and an inability to overcome debt during the current government enforced coronavirus lockdown, it is essential to know your debt liabilities and legal rights. Hiring a debt defense attorney in Pittsburgh should always be your first step. A debt defense lawyer in Pittsburgh can help you navigate the numerous options put in place by the federal and state governments designed to aid Americans in debt recovery to include debt forgiveness, debt deference and several payment types.
If you have entered into or accrued additional debt during the COVID-19 crisis, it is important to know your repayment options to include debt forgiveness. Knowing what you are and are not mandated to pay amidst this financial crisis can mean the difference between survival for you and your family and full on despair. To put the coronavirus economic scenario in perspective, there have been over 16.8 million new jobless claims, a United States record, since the start of the pandemic. These numbers have the country’s mortgage lenders bracing for what could be the largest payment default period in history. By current estimates, more than 30% of all borrowers could default on their mortgage. When mortgage borrowers default on payments, the economy is significantly and negatively impacted. These borrowers experience lowered FICO scores making their chances of borrowing money in the future much slimmer. In addition, the homes they can no longer afford become foreclosed causing the property value to drop. In the end, neighborhoods lose value, appeal and residents leading to fewer customers in stores and restaurants.
In bankruptcy proceedings, a debt that by statute is not paid until all other debts have been paid in full is a debt deferred. Debt Deferral is a mitigation option that can be used during the COVID-19 crisis to keep cash in American’s pockets. The expert debt defense lawyers at Fenters Ward can assist clients with the rules and laws of debt deferral in the State of Pennsylvania. Debt deferment is a good way to avoid filing for Chapter 7 or Chapter 13 bankruptcy. The debt defense attorneys at Fenters Ward will always provide you advice to help keep bankruptcy as your last option.
Unemployment rates are reaching astronomical highs with over 30 million Americans having to register for unemployment compensation within the past few weeks alone. Many Americans have looked to unemployment benefits as a lifeline for paying bills and staying afloat during this crisis. The average payout for unemployment is $300 a week for a duration of 26 weeks. That timetable has been expanded to 39 weeks and freelancers and gig workers actually qualify for the first time. From a coronavirus standpoint, people unable to work because they are sick, quarantined or require childcare because of COVID-19, will receive an added benefits payment of $600 per week. The additional benefits can last up to four months.
401(k) Penalties Waived
With this option, the federal government will waive the 10% early-withdrawal penalty for taking money from your 401(k) retirement fund. Qualified individuals can withdraw as much as $100,000 to help them get through this crisis.
Additional Types of Loans and Benefits
To bring relief to Americans struggling with debt during this critical time period, the federal government has passed a stimulus package designed to boost the economy. This package may not be enough to completely save many Americans from loan defaults but it has placed cashflow back into their pocket
$1,200 Coronavirus, COVID-19 Relief Checks
Every individual making $75,000 or less will receive a stimulus check from the U.S. Treasury for $1,200. A couple that makes under $150,000 and files taxes jointly would each receive $1,200 for a total of $2,400. Married couples will get an additional $500 per child. Reduced checks will go to people making between $75,000 and $99,000 a year ($198,000 jointly). Eligibility is determined by your 2019 or 2018 tax return. The government will check your tax return for those years and, if you qualify, you should receive the money by direct deposit or check. If you have registered your bank account when paying taxes to the IRS, you should either have received your stimulus check. Those who receive IRS refunds via regular mail, may not get their checks until sometime in May 2020. Payment tracking is available through the Get My Payment tool on the IRS website. A second stimulus check may become available sometime during the summer months. Many Americans feel this will be needed as the initial payment just scratched the surface of their acquired debt.
A word of warning to the millions of consumers being chased by debt collectors – the collection agency may get to your stimulus check before you do! This is why it is critical Americans who are facing debt issues work with debt defense lawyer in Pittsburgh, such as Fenters Ward, to ensure full awareness and comprehension of all debt litigation laws and how they apply during the COVID-19 crisis. This is no time to get caught flat-footed or to be blind-sided by a creditor.
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Why Fenters Ward
Our law firm has successfully represented hundreds of clients in Pittsburgh, Westmoreland, Butler, Armstrong and surrounding counties in these types of lawsuits. We have had hundreds of thousands of dollars of debt extinguished. Do not let these debt-buyers and credit card companies bully you with a lawsuit. They want you to believe that you have no options, but at Fenters Ward we can turn a lawsuit into a money-saving opportunity and protect your credit score. Call the Fenters Ward Law Firm today at 412-504-7763 or email us at firstname.lastname@example.org to obtain additional information on our debt defense services. We offer free consultations to all potential clients.