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What to do if you cannot pay your bills because of a coronavirus hardship
What to do if you cannot pay your bills because of a coronavirus hardship
We are living in challenging, uncertain times. Covid-19 is wreaking havoc on the global and domestic economy and no one knows when business and life will return to normal. How long the economy will be affected is anyone’s guess. If you find yourself furloughed or laid off due to this pandemic, you are not alone. Millions of people are in the same position right now. To the extent possible, you want to be proactive rather than reactive in managing your finances and debt obligations. Your creditors expect to hear from you. Many are willing to be flexible if you reach out and explain your situation. The government and financial institutions are taking steps to provide additional relief as the Covid-19 situation evolves. If you are struggling with managing debt after a coronavirus layoff, here are some strategies to help you through to better times.
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A. APPLY FOR UNEMPLOYMENT INSURANCE
If you were laid off or furloughed due to Covid-19, you might be eligible for unemployment com-pensation through your state. Some types of workers normally do not qualify for unemployment. However, under the federal CARES Act, categories of eligible workers have been expanded to include independent contractors and some self-employed workers. The CARES Act also increases weekly unemployment benefits with an additional $600 per week of Federal Pandemic Unemployment Compensation until July 31, 2020. You can receive this extra amount even if you’ve previously exhausted your state benefits. To verify your eligibility and find out how to apply for benefits, check with your state’s unemploy-ment office or website. You will want to apply as soon as you are eligible but be prepared for a delay as states work with the federal government to distribute these funds. Continue to check on your application status and if possible continue to check your state’s unemployment website and/ or sign up for coronavirus email updates or alerts. Your state unemployment office might also use Facebook or Twitter to communicate updates. If you’ve already filed an unemployment claim and were approved or are receiving benefits, you don’t need to do anything to receive the additional $600 increase. Most importantly, you will likely have to be patient. News reports each week highlight how state unemployment offices are over-whelmed by the rapid rise in claims. It may take multiple attempts to file your claim by phone or online, and benefits could be delayed as state agencies try to keep up with demand and adjust to new federal guidance from the CARES Act.
B. RESEARCH DEBT RELIEF OPTIONS
Various relief options are available on the federal, state, and local levels. Some of the major forms of relief include:
Mortgage Relief The CARES Act gives homeowners with government-backed mortgages the right to request two periods of mortgage payment forbearance if they are experiencing financial difficulty because of the pandemic. These periods collectively total 360 days of non-payment. During a forbearance period, no additional fees, interest, or penalties may be assessed for the forbearance. This mortgage relief is provided to borrowers who have government-backed mortgages including those insured by:
• Fannie Mae.
• Freddie Mac.
• HUD.
• FHA.
• USDA.
• Veterans Administration. Multifamily property owners who were current on their federally-backed mortgages on February 1, 2020 may request forbearance for 30 days and extensions that equal another 90 days. If you receive a forbearance, you cannot evict a tenant from your property. Other lenders are offering forbearance, albeit for shorter time frames (typically 60 to 90 days). Contact your lender to explain your situation and see what help is available.
Foreclosure Moratorium The CARES Act also provided for a 60-day foreclosure moratorium that began on March 18, 2020 for properties secured by mortgages backed by the federal government. Additional federal relief may be available if Congress passes a new relief bill. Additionally, several states and municipalities are disallowing foreclosures during this time. In other jurisdictions, courts are closed, so the eviction process may not be able to be carried out.
Eviction Relief The CARES Act provides a moratorium on evictions for non-payment of rent for people who live in federally assisted housing or single-family or multi-family properties with federally-backed mort-gages. These rules also prohibit owners of such properties from charging late fees or other fees due to non-payment. Several states and local governments have also enacted special orders that prohibit landlords from evicting tenants during the pandemic. For example, California’s moratorium on residential evictions prohibits eviction if a tenant contacts his or her landlord to notify him or her that the tenant is unable to pay due to COVID-19.
Student Loan Payment Suspension Student loan payments and accrual of interest under certain federal loan programs are suspended through September 30, 2020 under the CARES Act. The suspension is automatic, but you should contact your loan provider for information about your specific student loan situation. Although you can continue to make loan payments if you choose, consider stopping payments altogether. This is a no-lose situation here because the interest accrual is on hold. Suspending payments can help free-up cash for the things you can’t delay, like food and possibly the mortgage or rent. Unfortunately, the relief program does not apply to borrowers with private student loans. If you are unable to pay private student loans, you should contact your lender and ask about loan mod-ification programs, which many offer. Don’t wait!
Utility Shutoff Moratoriums Your local utility companies may have agreed not to cut off necessary utility services, or your locale may prohibit cutting them off during the pandemic. Since the federal government and the states have declared a state of emergency, there may be additional consumer protections during this time. Additionally, the Federal Communications Commission is requesting that carriers to not cut off consumers’ telecom services.
Community Resources You may have additional resources available on the local level. For example, New York implemented a policy that froze payments on student loan, medical, or other debt owed to the state for at least 30 days. Community and faith-based organizations may be able to help with rent or utilities. Food banks are also available to provide for basic food, household supplies, clothing, and other resources, depending on the organization and availability of resources. Grassroots efforts have also been made around the country, helping with everything from sup-plying masks and PPE to those in need, to clothing and resources for the homeless. Programs to provide financial assistance to laid-off restaurant workers or freelancers have also been estab-lished. For example, the Restaurant Workers’ Community Foundation has set up a relief fund to help distressed workers and restaurant owners. You can check what local resources are available in your area here. You can also check with your local news organizations and government agencies for more information.
C. CONTACT YOUR CREDITORS
Check with your creditors to see what leeway you may have. Many banks are offering customers breaks on credit card payments, but you usually need to ask. Some large insurance companies are refunding a portion of your car insurance payments for March, April, May and/or June 2020 if you have an active policy during this time. If you have a relationship with your banker, a representative at a local utility company, or another one of your creditors, try talking to that person first to see what options may be available. Creditors have a lot of leeway in what they may be able to do to ease the financial burden on you during a time of crisis. They may agree to temporarily waive or reduce fees, reduce interest rates, defer pay-ments or make other adjustments. Some creditors are refunding interest charges and reinstating reward points as a way to help. Be sure that you mention that you were laid off due to coronavirus, which may trigger some of your options. Many companies have hardship programs that are only available if requested and in times of personal or financial crisis. A lot of companies have their COVID-19 policies on their websites, so review this information before calling to see what options may be available. When negotiating with your creditors, be sure that you understand any long-term consequences, such as whether the company will raise your interest rate or report you as delinquent, which can negatively impact your credit score. Also, try to get any agreement in writing to protect you in case you later see a statement that charged you fees or was not in line with your new agreement. Be patient. A lot of customers will be calling for the same reasons you are. It might take a while to get through on the phone. Be prepared to explain the reason for your financial difficulty; the help you would like (skip a payment, extend a due date; waive late fees and interest penalties; don’t report a late payment to credit bureaus); and when you think you can resume payments.
D. CONSIDER YOUR OPTIONS
If you have more debt than income after you have taken all of the steps above, there are various strategies you may be able to use to ease your financial burden during this time. The availability of options will largely depend on your particular circumstances, available resources, and your credit history. Some strategies that you may be able to use include:
Cut Unnecessary Spending and Triage Debt It may seem like an obvious step, but one of the first things you should do is assess your spending and triage your finances. What does this mean? Take an accounting of all your bills and categorize what is truly essential (housing, food, car, healthcare, etc.). Then, cut out any nonessential spend-ing for the immediate future. That may mean making some unpleasant decisions; for example, canceling or suspending gym memberships and subscription services, and even paring down your cable package and streaming services. Try to be realistic about what is truly necessary and try not to get too discouraged. These cuts are temporary and the goal is to free up as much wiggle room in your budget as possible for the things that cannot be put on hold.
Use Balance Transfers If you have been putting off transferring your credit card debt to a lower rate card because you wanted to avoid balance transfer fees or didn’t have the time to do so, now may be the time to make this move. By transferring high-interest-rate debt to a new card with 0% interest, you can potentially save thousands on interest charges if you can devote payments to your debt during the 0% interest period. Additionally, the Federal Reserve has cut interest rates, so even if you are unable to secure a 0% interest rate, you still may be able to secure a card with a much lower interest rate than what you are paying now.
Use Stimulus Funds Many Americans will qualify for stimulus funds, which provide up to $1,200 for single filers and $2,400 for married couples filing jointly, plus $500 per child. If you have not yet received (or spent) your funds, consider the best use of these funds. This may be to pay a couple of months of mortgage payments to give you some breathing room, pay off high-interest rate debt, stock up on groceries, or take other action specific to your situation.
Apply for a Personal Loan Some lenders are providing temporary emergency loans to people to help cover the gap between the date when they are laid off and when they start receiving unemployment benefits. These emer-gency loans are usually structured so that consumers do not have to make payments until 60 or 90 days after the loan origination date. A personal loan may also be a way that you can consolidate your debt to achieve lower payments and a lower interest rate.
Dip into Your Retirement Fund (a Last Resort) Dipping into a retirement account before you retire should probably be a last resort if you need cash to cover necessary living expenses. If you have taken all of the steps above and still have a deficit, you may consider this option. The CARES Act waives the 10% early withdrawal penalty for those under age 59 ½ on distributions up to $100,000 if the distribution is related to coronavirus hardship. You will still be responsible for paying income taxes on the amount you withdraw, but you have three years to pay these taxes. The CARES Act also broadened the qualified retirement plan loan provisions to allow a participant suffering from a coronavirus hardship to borrow up to $100,000 or 100% of the participant’s vested account balance, whichever is less. This applies to loans made within 180 days of enactment of the legislation (March 27, 2020). Additionally, you can suspend existing retirement plan loan repayments due between March 27, 2020 and December 31, 2020 for up to one year. A coronavirus hardship includes a Covid-19 diagnosis for you, your spouse or dependent and financial hardship as a result of business closures, reduced work hours, lay off, furlough, lack of child care, or other factors as determined by the Treasury Secretary.
Try Credit Counseling Another option you may consider is working with a reputable credit counselor who can help you come up with a new budget, explore ways to minimize expenses and develop a plan to consolidate your debt or make new debt repayment plans with your creditors. If you go this route, be sure to properly vet the credit counseling company and make sure your counselor is accredited by the National Foundation for Credit Counseling. Also, be aware that you may have to close accounts you are paying off, and this may impact your credit score and may stave off credit you might need to access in case of an emergency.
File Bankruptcy Finally, you can consider filing bankruptcy. This option is listed last because it is a last resort. It can have a major impact on your credit score and may prevent you from securing loans or new credit in the near future. However, bankruptcy may allow you to discharge debts that are overwhelming you. It may also help you to put a hold on any legal actions being taken against you, such as fore-closure or repossession of your vehicle.
GET MORE INFORMATION
The steps that you should take to manage your debt after a coronavirus layoff are specific to your situation. Speak with a certified financial planner or a bankruptcy or debt relief lawyer to learn more about your options.
The period between Memorial Day and Labor Day is historically the most dangerous time of year for teen drivers. Some research shows up to 30% of all teen driving fatalities occur during the summer months. Teen drivers lack experience, and the summer months provide multiple reasons for increased risk. Not only is there more daylight and warmer weather, but most teens are out of school and have more free time to be behind the wheel. Here are five safety tips for your teen driver to practice, not just in the summer months but all year long. 1. Avoid Distraction . Research shows as high as 60% of all teen vehicle crashes involve driver distraction. One common misconception is that cell phones are the number one cause of distraction for teen drivers but that is actually not the case. Other passengers create more distractions for teen drivers than any other source. 2. Buckle Up . It is discussed so often that it may seem trite but seatbelt use is proven to reduce fatality rates in motor vehicle accidents. but data shows buckling up can reduce the risk of fatal injury by as much as 45%. 3. Impaired Driving . As high as 15% of all teen driving fatalities involve a blood alcohol content of more than twice the legal limit. 4. Limit Passengers. Most states, including Alabama, have graduated license laws restricting the number of passengers in vehicles operated by teen drivers. Literally all available data associates fewer passengers with lower fatality rates in motor vehicle accidents involving teen drivers. 5. Reduce Nighttime Driving. The fatal crash rate of 16-19-year-olds is nearly 400 times higher at night than during the day.
Identity theft affects millions of people each year and can cause serious harm. Protect yourself by securing your personal information, understanding the threat of identity theft, and exercising caution. Here are 10 things you can start doing now to protect yourself and your loved ones from identity theft: Protect your Social Security number by keeping your Social Security card in a safe place at home. Don’t carry it with you or provide your number unnecessarily. Be careful when you speak with unknown callers. Scammers may mislead you by using legitimate phone numbers or the real names of officials. If they threaten you or make you feel uneasy, hang up. Create strong, unique passwords so others can’t easily access your accounts. Use different passwords for different accounts so if a hacker compromises one account, they can’t access other accounts. Check out the Federal Trade Commission’s password checklist for tips. Never give your personal or financial information in response to an unsolicited call or message, and never post it on social media. Shred paper documents that contain personal information, like your name, birth date, and Social Security number. Protect your mobile device from unauthorized access by securing it with a PIN, adding a fingerprinting feature, or using facial recognition. You can also add a password and adjust the time before your screen automatically locks. Regularly check your financial accounts for suspicious transactions. You can also request and check a free credit report from each of the three credit bureaus every year: TransUnion , Equifax , and Experian . Avoid internet threats by installing and maintaining strong anti-virus software on all your devices—including your mobile device and personal computer. Use a virtual private network (VPN) to stay safe on public Wi-Fi. Do not perform certain activities that involve sensitive data, like online shopping and banking, on public Wi-Fi networks. Protect yourself on social media by customizing your security settings and deleting accounts you no longer use. Also, double-check suspicious messages from your contacts, as hackers may create fake accounts of people you know. Never click on any link sent via unsolicited email or text message—type in the web address yourself. Only provide information on secure websites.
Every accident case is different. Some settle more quickly than others. However, it is not uncommon, for a personal injury case to take a year or more to resolve after the case has been filed in court. Evaluating the Injury Prior to filing a lawsuit, it takes time to determine the full extent of your injuries. Doctors are often unable to give an opinion about the seriousness of an injury until your condition has stabilized. In serious injury cases, it may even take a year after the accident before your doctor can say whether or not your injuries are permanent. It is extremely important to take the necessary time to fully evaluate your injuries. You have only one chance to prove the extent to which you have been harmed. Once you accept a settlement offer, that decision is final. You cannot go back and ask for more money if you later find out your injuries are more serious. An experienced personal injury attorney knows how to keep your case moving through the legal system. Your personal injury case may move through these stages: 1. Written Discovery The written discovery period can last over six months. You will be asked to answer written questions (interrogatories) under oath. You will also be asked to produce documents or authorize others to produce documents such as accident reports and medical records. 2. Depositions During a deposition, you will be asked questions under oath. A court reporter types a record of everything that is said. Not only will you be questioned about the accident and your injuries, you will be asked questions about what your health, education, and work were like before the accident. 3. Mediation and Settlement The Court almost always requires a settlement conference or mediation before personal injury cases can go to trial. At mediation, a neutral trained mediator goes over the issues and evidence with the parties to help guide them toward a settlement agreement. 4. Trial If your case does not settle and goes to trial, a jury decides what your injury is worth. It can take eighteen months or longer to get the trial scheduled. Once the trial is over, there may be further appeals and motions. It's possible for the parties to settle the case during trial or even after trial in order to end an appeal. Your best strategy is to contact an attorney with experience in handling personal injury cases. Your attorney can give you an estimate about the length of time it takes to resolve your type of case. Also, ask your attorney to give you frequent reports on the status of your case so you know that your case is making its way through the legal process. It's understandable that you may be frustrated at the speed your case seems to be moving. However, you should never rush to take the first settlement offer made by an insurance company. The first offer is rarely your best settlement offer. .
Distracted driving has been on the increase for the last several years and continues to be one of the leading causes of vehicle accidents throughout the United States. If you are texting and driving down the highway at 55 mph, that’s like traveling the length of a football field with your eyes closed. You can only drive safely when your full attention is on the road. Any activity that isn’t related to driving is a potential distraction and increases your risk of a collision. While most research points to a mobile phone as the number one culprit, it is far from the only activity potentially stealing a driver's attention. Eating or drinking, grooming, radios, other passengers - especially children, and even pets can also be significant factors. Distracted driving accidents are preventable 99% of the time. Driving can become mundane at times, but we all must remember when driving we have an obligation to the safety of not only ourselves but those who ride with us and other drivers we share the road with. Some studies show listening to podcasts or certain types of music can enhance our concentration. It’s important to practice safe habits behind the wheel. You want to make sure that your passengers know how serious you are about driving without distractions. One of the most effective ways to lead is through example. Be a good example for your friends and family by avoiding driving while you’re distracted.
We see this question all the time. The injured party doesn’t want to use their own health insurance to pay for an injury. They believe it is the responsibility of the person at fault to pay for their medical bills. That may feel like the right position for an accident victim to take but the truth is, most of the time the injured party will end up with a larger settlement if they do, in fact, use their own medical benefits. Here's why; Health insurance companies have a negotiated price for medical services that is about 15 percent less than what people have to pay who don’t have health insurance. If your medical bills are $50,000.00 but Blue Cross Blue Shield pays $15,000.00 and the person who caused the wreck has $50,000.00 in liability coverage, that leaves $35,000.00 available for the injured party versus $0.00. Generally speaking, Blue Cross Blue Shield will reduce the $15,000.00 to $10,000.00 leaving $40,000.00 available. The point is that there’s more money available when you take advantage of your healthcare negotiated rates whether it’s United Health Care, Medicare, Medicaid, or Blue Cross Blue Shield. More money is better. Using your health insurance to pay your medical bills if you are injured, will almost always end up maximizing your settlement.
Once you reach the age of 65 you have many more options than before. As you know if you go on Medicare and you are under the age of 65 your options for health plans are limited. When you turn 65 you will have another open enrollment period to sign up for any plan you wish to get. In other words, just because you are already on Medicare does not prohibit you from having all the options a person not on Medicare and turning 65 would have.
This is one of the questions we get asked the most. In most cases, the answer to this is “no”. When you turn 65, if you are still working and on your employer’s health insurance plan you probably will not need Medicare Part B. I say probably because most employer plans do not file on Medicare if you have a claim. Because you have to pay a premium for Part B, Medicare does not require a person to sign up for Part B as long as you are on your employer’s plan. Also, because the rules can differ for companies with less than 20 employees, the safest thing to do is check with the benefits coordinator at your place of employment for guidance or call us at our office.
Social Security: 3 main reasons why the Government can deny Disability Benefits
For many working Americans, when the unexpected happens and they can no longer work due to a serious medical condition, Social Security Disability Insurance (SSDI) benefits can be a financial lifeline. Most American workers contribute to Social Security through federal payroll taxes. Social Security is designed for income during retirement years however if an individual’s working years are cut short by a severe, long-term illness or injury, they may need income before reaching retirement age. For many who find themselves in these circumstances SSDI provides monthly financial assistance. Seven facts every American should know about the SSDI program 1. SSDI is coverage that workers earn. If an individual has paid enough Social Security taxes through their lifetime earnings, SSDI is intended to provide support by replacing some of their income when they become disabled and unable to work. 2. The Social Security Administration (SSA) has a strict definition of disability. The SSA considers a person disabled if they can’t work due to a serious medical condition that is expected to last at least one year or result in death. SSDI is intended as a long-term solution and is not intended to offer temporary or partial disability benefits. 3. Disability can happen to anyone at any age. Serious medical conditions, such as cancer and mental illness, can affect the young and elderly alike. Studies prove one in four 20-year-olds will become disabled before retirement age. As a result, they may need to rely on Social Security disability (SSDI) benefits for income support. 4. SSDI payments help disabled workers to meet their basic needs. SSDI is not and was never intended to be a full wage replacement. The average monthly Social Security disability benefit is $1,280, as of April 2021, which is intended to allow an individual who has become disabled to meet their basic needs. 5. Social Security works aggressively to detect and prevent fraud. Every American worker who pays federal taxes invests in SSA. The agency is committed to protecting their investment by taking a zero-tolerance approach to fraud. The agency claims a fraud incidence rate that is a fraction of one percent. 6. SSA helps people return to work without losing benefits. Often, people would like to re-enter the workforce. However, many worry they will lose disability benefits if they try working again. They may also fear losing benefits if they are unsuccessful in returning to work. The agency has many programs designed to connect an individual to free employment support services while helping them maintain benefits, such as health care. 7. Millions of disabled Americans depend on SSDI benefits. Nearly 10 million disabled workers and their spouses and children receive benefits through SSA.
A circuit judge in Sarasota ruled Monday that the verdict in a legal malpractice case against the Morgan & Morgan law firm should stand. The judge also denied Morgan & Morgan’s motion for a new trial and another motion to reduce the $5 million award determined by the jury. Attorney Donald St. Denis of St. Denis & Davey in Jacksonville, who represented the plaintiffs in the malpractice lawsuit, said Friday he has a hearing scheduled Tuesday in Sarasota on a motion to award his firm $1.6 million in attorney’s fees and costs. “We’ve been working on this for two years. I’ve got a ton of time in this case,” he said Friday. St. Denis made offers on behalf of his clients in August 2016 and again in January 2017 for $2.5 million and $4 million, respectively, to settle the malpractice suit before going to trial, but Morgan & Morgan’s counteroffer was only $1,000, he said. Morgan & Morgan intends to appeal the jury’s verdict. John Morgan “This case is a long way from over,” John Morgan said Friday in an email response. “We defended this case because we think we are right. And we will continue fighting it because we still believe we are right. We fully expect to win outright on appeal and have a judgment in our favor entered by the appellate courts.” St. Denis represented Shawna and Rock Pollack in the malpractice action related to Morgan & Morgan’s handling of a personal injury case the couple filed after their child was permanently injured during birth. On Oct. 17, a jury in circuit court in Sarasota County found that Morgan & Morgan attorney Armando Lauritano was 100 percent responsible for Shawna and Rock Pollock losing their rights to a medical malpractice claim against a Sarasota obstetrics practice, a nurse midwife and the hospital where their child was born. The case began Nov. 2, 2006, when Shawna Pollock was admitted to Sarasota Memorial Hospital to give birth. After she was given a hormone to induce labor, the unborn infant began to experience slowed fetal heartbeat and Pollock began writhing in pain. By the time an emergency cesarean section was performed, Pollock’s uterus had ruptured, depriving the fetus of oxygen, which caused permanent brain damage. After the birth, the Pollocks contacted Morgan & Morgan. An investigator from the firm met the couple at Ronald McDonald House, where they were staying while their infant son was in All Children’s Hospital in Tampa. On Feb. 17, 2007, the Pollocks agreed to be represented by Morgan & Morgan. They agreed to pay the firm up to 40 percent of a recovery up to $1 million, 30 percent between $1 million and $2 million and 20 percent of recovery in excess of $2 million. St. Denis argued to the jury that Morgan & Morgan was focused on collecting a large fee for the child’s brain injury claim to the point that its representative failed to provide the required presuit notice of claims for injuries sustained during the delivery by Shawna Pollock, including that she no longer is able to have children. After it became clear that the baby would qualify for no-fault benefits from the Florida Birth-Related Neurological Injury Compensation Association, and after the statute of limitations period for submitting notice the Pollocks intended to seek compensation for their personal loss had expired, Morgan & Morgan withdrew from representing the Pollocks. The jury found that the OB-GYN practice, the nurse midwife and Sarasota Memorial Hospital were negligent in the care of Shawna Pollock. The medical practice and nurse midwife were found by the jury to be liable for $4.5 million in damages and the hospital was found liable for $500,000 in damages, if the Pollocks had not lost their rights to sue for damages. In its $5 million verdict, the jury further found that Lauritano was negligent in his handling of the Pollocks’ interests, that the Pollacks did not freely and intentionally give up their right to seek compensation from the physicians and hospital and that Lauritano was liable for the loss they incurred. original article https://www.jaxdailyrecord.com/article/court-upholds-dollar5-million-malpractice-verdict-against-morgan-and-morgan