Bankruptcy Law, COVID-19, Debt Relief

Unemployment Skyrockets as a Record Number of Bankruptcies Anticipated

The coronavirus (COVID-19) crisis has hit the American economy hard, which is evident in the number of unemployment claims being filed. It has been reported that approximately 17 million American workers have filed for unemployment over the course of three weeks after many businesses have shuttered.

Research from three different Federal Reserve banks have shown that bankruptcies related to the economic downturn from the COVID-19 crisis could increase by 200,000 to reach a record 1 million filings. However, this increase is possible only if government stimulus programs do not offset this increase.

Coronavirus, COVID-19, Debt Relief

Tips for Dealing with Debt During the Coronavirus

The coronavirus (COVID-19) crisis has hit South Floridians hard. With stay at home orders issued, many are finding themselves out of work and stuck at home. Many have lost their jobs due to temporary or even permanent layoffs. Without a reliable source of income, these individuals may find themselves struggling to pay their bills. The following tips can help consumers manage their debt during this difficult time.

Federal Student Loan Payments

Under the federal Coronavirus Aid, Relief and Economic Security Act or CARES Act, which was signed into law by President Trump on March 27, 2020, federal student loan payments held by the U.S. Department of Education will be suspended for a period of six months with no interest accruing until September 30, 2020. This payment suspension occurs automatically and does not need to be requested by the individual.

Coronavirus, COVID-19, Debt Relief

How to Receive Financial Help During the COVID-19 Crisis

The coronavirus (COVID-19) has hit our nation’s economy hard, with many Americans finding themselves suddenly out of work.  Countless small businesses have had to close their doors due to the spread of the coronavirus. Financial assistance is available during the COVID-19 crisis.

A record number of American workers filed for unemployment last week, which totaled 3.28 million people. The biggest form of financial help comes in the form of a recent $2.2 trillion stimulus package passed by Congress just last week. President Trump signed the stimulus bill into law on March 27, 2020.

Coronavirus, COVID-19, student loan debt, Student Loans

How Student Loan Borrowers Will Benefit from the Stimulus Bill

The recently passed $2.2 trillion stimulus bill provides several different forms of financial assistance for American consumers during the current coronavirus (COVID-19) crisis. The new bill also provides options for student loan borrowers who are struggling to keep up on their loan payments, which comes as good news for the over 44 million borrowers holding more than $1.5 trillion in outstanding student loan debt.

Borrowers who have federally owned student loans will not have to pay on their loans through at least September 30, including Parent PLUS Loans. This payment suspension will occur automatically and does not need to be requested by the borrower.

Coronavirus, COVID-19, Debt Collection, Debt Relief

Debt Collectors Argue They are ‘Essential’ to Consumer Financial Health During COVID-19 Shutdown

The coronavirus (COVID-19) has hit American consumers hard, putting many of them temporarily out of work. Relief efforts have been made on a state-by-state basis to assist consumers.

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.