I HAVE BEEN WORKING FROM HOME DUE TO COVID-19 AND MY HUSBAND HAS BEEN ON UNEMPLOYMENT. WE HAVE BEEN USING OUR CREDIT CARDS TO SURVIVE. CAN YOU HELP US?
Many people do not know where to turn as a result of the COVID-19 and have incurred large credit card debt for takeout and online purchases due to the situation that New Jersey has been closed for almost three months.
Some Americans are getting stimulus checks and unemployment compensation, while others have not received anything at all. Also, because of the huge amount of unemployment, many people are not getting regular payments, which is putting them behind on all their debts.
Some of our clients are getting mortgage forbearance agreements but many listened to my advice and used whatever money they had to stay current with their mortgage payments.
Delay is Not Forgiveness
Even though Governor Murphy has stopped several creditors activities, this is only a temporary measure and eventually creditors will go after you if you are behind on your bills.
The mortgage forbearance legislation in the Cares Act is only for federally backed mortgages and not a forgiveness. Every notice our office has received for people who get a mortgage forbearance states that the forbearance arrears will have to be paid back. Also, auto creditors have no legislation stopping them from repossessing vehicles. However, many are doing it voluntarily.
Please note: Credit card debt is not forgiven under any law in connection with the current pandemic and creditors will eventually pursue you since a judgment is good for 20 years in New Jersey.
Now is the Time to File for Bankruptcy
Things are hard enough now and you don’t want creditors to sue you when you get back to work and try to levy your bank accounts or garnish your wages since you work too hard for your money.
Also, now is the best time to file for bankruptcy since the Cares Act has made chapter 7 and chapter 13 easier to file from a legal perspective.
Steven N. Taieb, Esquire has been a south jersey bankruptcy attorney for 35 years and is board certified in consumer bankruptcy law by the American Board of Certification which is accredited by the American Bar Association.
We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy Code.