When we welcomed in the New Year, none of us could have imagined what 2020 would bring. With a continuously lingering pandemic, the year is drawing to a close with millions of Americans struggling to regain employment, drowning in debt, behind on payments, and unsure what the future may hold. Millions of renters are behind on their payments and, with no new relief plan in sight, mass evictions could come soon – ushering the next American housing crisis.
The Outlook for Those Behind on Rent
Across the nation, individuals saw their work hours cut and their income diminish due to the pandemic. Even those who had been financially smart and living within their means found themselves in a financial conundrum as COVID19 raged on. Rent payments fell behind as families were no longer able to afford meeting their monthly bills. While many states delayed rent payments, these moratoriums are now ending and landlords are free to once again start the eviction process. Currently, the outlook looks grim for those who have exhausted their savings, continued to collect debt, and are behind on their payments.
How an Automatic Stay Can Help
Thankfully, there is hope for those who have been unable to keep up with their mortgage payments and are frightened of losing the place they call home. Filing for bankruptcy makes it possible for tenants to postpone any eviction proceedings through something called an “automatic stay”. This automatic stay can give individuals the opportunity to regain their financial footing through the court while also buying them time to catch up on rent payments. Bankruptcy can help those struggling with debt and afraid to lose their homes reach a better financial tomorrow.
Other Benefits of Bankruptcy
Some people chose to continue paying for their monthly payments during these tough economic times by putting the cost on a credit card or by taking out loans. While these methods may have secured their homes for a short period, people are finding themselves overwhelmed with huge interest payments along with a serious hit to their credit score. By pursuing bankruptcy, those who are struggling with debt can find financial freedom once again as they see their payments lowered – or their debt completely eliminated. Additionally, bankruptcy filers can more quickly work to rebuild their credit, with many managing to do so within 2 years
Get The Help You Need Today
Our offices understand how challenging the pandemic has been for everyone, but especially for those who own a home. Thankfully, bankruptcy provides the chance for families to catch up with their debts while still keeping their homes. Sadek and Cooper provides payment plans for Chapter 7 and Chapter 13 bankruptcies to aid those who are struggling get started fast.
We’ve all been through enough this year. Don’t end 2020 without a home to call your own. Pursue a bankruptcy to embrace financial freedom and ensure you have a home this holiday season.