Keeping up with rent and other necessary bills can be difficult for Philly residents under the best of circumstances. During the COVID-19 pandemic and the shutdowns that surrounded it, meeting monthly expenses became impossible for numerous families. While many individuals feared facing homelessness following the end of eviction moratoriums, a new stimulus package provides much-needed relief and hope for the future.
Eviction Moratorium Extension
In the midst of the pandemic, the government realized that paying for rent would be impossible for many families. While it didn’t completely do away with rent payments, they did enforce legislation that made it impossible for tenants to be evicted from their homes for a set time. While this moratorium was set to expire on December 31, 2020, it has now been extended to January 31, 2021. The extra month will provide individuals with much needed time to get up to date on their bills – but for many, an uncoverable lump payment becomes due February and evictions draw near. Additionally, foreclosures restarting from January 7th in Philadelphia.
Rent Relief From Evictions
The newest relief package also provided $25 billion in rent relief funds. This money will be spread across the states, territories, and tribal communities in the USA with experts expecting each state to receive around $200 million. However, only those families considered low-income or have been unemployed for the last three months will be eligible for rent relief. Leaving many middle-class families and struggling families impacted by COVID-19 uncovered. These everyday Americans will have to seek out other financial relief options, like foreclosure defense and bankruptcy, to help resolve their financial hardships and eviction stays.
Extra Benefits to Renters
On top of the rent relief and eviction moratorium extension, the relief package added some additional help for families across the United States. It worked to ensure that each individual gets a $600 stimulus check, it puts more money onto food stamp cards and continues with the $300 per week in unemployment benefits over the next three months. However, the total stimulus payment of $1,800 which has been received over the span of the pandemic does not come close to covering upcoming rent and mortgage payments for the majority of Americans. More than 2.3 million homeowners remain 90 or more days past due on their mortgages and at risk for foreclosures.
What This Means for Families Behind on Rent
Those who are behind on their rent and facing potential eviction should use the extra month to save back as much money as possible to pay upon the rent that is due. But if you owe any additional debts, outside of the forborne rent or a mortgage, and the current governmental assistance is not enough to help in your rent repayment then you should consider contacting a legal advocate, such as a debt relief or foreclosure lawyer. A local Philadelphia foreclosure lawyer can help you get rid of your debts and minimize your payments moving forward to help you better manage your financial situation throughout the pandemic and beyond.
What if it’s Not Enough?
While the relief package is chalked full of options for those behind on their rent and facing eviction, for some people who are seriously in debt or who do not meet the outlined criteria, it may not be enough. If you are weighed down with rent payments, regular bills, and other debts, the stimulus money and other relief efforts may seem like a drop in the bucket compared to the looming bill. If you feel like you are drowning under debt and see no possible way to recover by the end of January, Bankruptcy and Foreclosure defense maybe your best option. Through a bankruptcy, you can work to do away with bills completely or refinance them into more manageable payments all while still taking advantage of relief options.
Don’t feel like life is hopeless and homelessness is your only option! Contact one of our nearby foreclosure lawyers or bankruptcy lawyers today to explore all of your financial relief options.