New York residents have been given a 30-day freeze period from state-owned medical debt and student loan debt collections. Another similar announcement came from the mayor of Chicago with respect to city debt through April 30, 2020. The Department of Education has suspended collections on federal student loans, and they are encouraging private student lenders to do the same.
Federal legislation has been proposed that would prevent debt collectors from pursuing a number of collections actions to push a consumer to pay on a debt, including shutting off someone’s utilities or garnishing wages until at least 120 days after a major disaster or emergency has ended.
Debt collectors are pushing back hard. They argue that debt collection is ‘essential’ to the financial health of consumers and an important industry for helping medical providers and other lenders. They also claim that suspending collection of debt would put an undue burden on their industry.
The fact that approximately 3.3 million new unemployment claims have been made indicates that consumers need help. Postponing collection proceedings, including wage garnishment, will arguably give consumers the relief that they so desperately need during this stressful time.
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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.