THE PANDEMIC AND YOUR FINANCES
Many of us have been financially impacted by the Coronavirus pandemic.
There has been a lack of income due to loss of jobs, company layoffs and non-essential businesses being closed. Rent and mortgages are due, monthly bills are stacking up, spending has increased, and credit cards have been maxed out.
The unknown future and burden of financial stress wreaks havoc on the entire family.
Whether you are a small business owner or an individual experiencing financial hardship, there are options available to you.
Here are a few:
Creditor Workout: Contact your creditors to discuss terms that are more manageable.
Loan Consolidation/Refinance: Obtain a new loan to consolidate your existing debt or refinance an existing loan with more favorable terms.
Debt Consolidation: Contact your creditors to settle debt for less than what is owed.
Mortgage Modification: Negotiate with the mortgage company to cure arrears that have accrued over a period of time. This may include adding arrears to end of the mortgage, extending the length of the mortgage, reduced interest rates, and forgiveness of debt.
Bankruptcy: Depending on each individual situation, Chapters 7, 13, or 11 bankruptcy options are available. The filing of a bankruptcy petition will immediately stay all collection efforts and provide some relief from financial stress.
Keep in mind that although we are social distancing and feeling isolated, you are not alone – many people are experiencing the financial effects COVID-19.
Please feel free to call us to discuss the options available to you and/or your business. We can be reached at (845) 778-2121.
Written by: Linda Rodriguez, Paralegal, Jacobowitz and Gubits, LLP.
This is not intended to be legal advice. You should contact an attorney for advice regarding your specific situation.