Coronavirus Layoffs: Creditors and Repayment Options

Coronavirus Layoffs, Creditors, and Repayment Options

COVID-19 led to business closures and shutdowns and people are still struggling with Coronavirus layoffs. While many employers took advantage of COVID-related loans and relief options, the limitations and shutdowns continue to lead to layoffs and financial crises in many families. Depending on the situation, you may have options to make it through a layoff.

In this short article, Joseph Wrobel, Ltd. offers some tips on saving money and negotiating repayments. You should also understand your Chapter 7 discharge and Chapter 13 reorganization options in Bankruptcy if eliminating debt obligations would make life easier.

Some Chicago area residents are having a difficult time finding a new job if they had a Coronavirus layoff. Many people are taking on extra side jobs and creative income opportunities while looking for a job. In many households, one parent is working while the other is job hunting. There are all kinds of ways to cut costs.

Chicago COVID-19 Financial Help and Funds

Mortgage and Rent Payments

COVID-19 relief extends to mortgage and rent payments. Mortgage lenders can agree to move one or more months of payments to the end of your home loan, so you do not have to make those payments while looking for a new job. Additionally, there are local moratoriums on evictions and foreclosures during the pandemic. However, those grace periods will end, and you must communicate with your mortgage lender and see what they can work out with you.

Coronavirus Layoffs and Bankruptcy Coronavirus Layoffs

Student Loan Payments

Coronavirus relief for student loan borrowers in the CARES Act, suspended federal student loan payments through September 30, 2020, extended by President Trump, through December 31st. Even though you have a deferment period and do not have to pay on federal loans, student loans from private lenders are not automatically deferred. If you have private student loans, call your loan servicer and see what options they have for you if you cannot afford to make payments.

Utility Bills and Monthly Subscriptions

Please pay close attention to how much money you are paying in utilities and monthly subscriptions. For example, people who learn new alternatives to cable television can save lots of money. Others are looking into their mobile phone and device plans to save some money. During COVID-19, you should be cautious about your ComEd bill not getting out of hand. Especially with people working and doing school from home, a loss of electricity is a serious problem. See ComEd Coronavirus updates.

Chicago Bankruptcy Attorney Joseph Wrobel Coronavirus Layoffs

Chapter 7 and Chapter 13 Bankruptcy Options for Coronavirus Layoffs

If you were already paying the minimums on credit cards or having a difficult time stretching your paycheck, Joseph Wrobel, Ltd. has bankruptcy options you might like, especially if you had a layoff from your job because of Coronavirus. When you call for a free consultation, Attorney Joseph Wrobel will meet with you and let you know how he can help.

A Chapter 7 bankruptcy discharge wipes out all your debts as allowed by the bankruptcy code. While you must agree that the trustee may be able to sell some of your assets to pay creditors, your personal property is exempt under Illinois law. There is a means test we can calculate to determine if your income and debts allow you to file for Chapter 7. In the alternative, and for several reasons you might prefer Chapter 13.

Chapter 13 Coronavirus Bankruptcy with Joe Wrobel Coronavirus Layoffs

A Chapter 13 bankruptcy reorganization allows you to repay your creditors through affordable monthly payments. The moment your Chicago bankruptcy attorney files your Chapter 13 petition, all creditors must stop collection activity and they cannot call and bother while your case is active. Lawsuits, letters, and wage garnishments must stop. People often file Chapter 13 to save their homes when facing foreclosure. Chapter 13 repayment plans can be up to five years and the amount you will need to repay can be 10 percent to 100 percent of what you owe. Joe Wrobel will help you get the most affordable repayment plan.

Coronavirus Layoffs Threaten Many Chicago Area Families and Chicago Bankruptcy Attorney Joseph Wrobel Has Options for You When You Call for a Free Consultation (312) 781-0996

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