Coronavirus Debt Protection Lawyers Melbourne, FL
Several months ago, federal lawmakers passed a foreclosure moratorium to protect homeowners living in Florida and across the country from having their homes foreclosed on if they were unable to keep up with their mortgage payments during the COVID-19 pandemic. The pandemic has created severe financial hardship for many in the country, leaving many people without work and minimal – if any – financial benefits. Anyone who is facing foreclose and/or other financial difficulties should contact one of the coronavirus debt protection lawyers Melbourne, FL clients recommend from Arcadier, Biggie & Wood, PLLC.
Protection from Foreclosure
Homeowners impacted by COVID-19 are eligible for a forbearance plan to reduce or suspend their mortgage payments for up to 12 months, as mandated by the CARES Act. This moratorium is available for borrowers with federally backed mortgage loans. Many private financial institutions also have offered mortgage holders similar opportunities if they cannot make their mortgage payments.
Although the moratorium has been a welcome relief for many Floridians, what a lot of homeowners who have taken advantage of this assistance is that at some point, when the program expires or you have reached the deadline of reducing or suspending your mortgage payments, the total amount you owe is now due. For example, if a person’s mortgage is $1,500 per month and their financial institution allowed them to suspend those payments for 12 months, at the end of that 12 months, that homeowner will be required to pay the mortgage holder $18,000 the day after their moratorium expires.
But filing bankruptcy during the coronavirus pandemic could be a solution for many families who find themselves in this position or otherwise having financial difficulties during this time. Filing for Chapter 13 can not only stop any foreclosure action your lender is threatening, but can also set up a realistic and achievable repayment plan for the amount of back mortgage you owe. In some cases, your lender may work with you and agree to a renegotiated repayment plan or a forbearance. If your lender is not willing to work with you, contact a bankruptcy attorney immediately to find out what legal options you have.
When you file a Chapter 13 bankruptcy, there is an automatic stay on any debt collection that any creditor you owe money to. This not only includes your mortgage company, but also any credit cards, collection agencies, utilities, and more. This automatic stay starts the moment your bankruptcy attorney files your bankruptcy petition with the court and puts a halt on any foreclosure action.
Your attorney will work with you to come up with an acceptable repayment plan of your mortgage and all of your other debts that the court will approve. The repayment plan is for a period of three to five years, allowing you enough time to get caught up and keep your home.
If you are facing foreclosure, eviction, or other COVID-related debt issues, contact Arcadier, Biggie & Wood, PLLC to schedule a free and confidential consultation with one of our coronavirus debt protection lawyers in Melbourne, FL, and find out how we can help.