When COVID-19 hit the scene, Americans were taken by complete surprise. In the blink of an eye, life as we knew it changed with jobs coming to a screeching halt and social distancing becoming the norm. While many things may have changed, one did not – debt collectors are as aggressive and persistent as ever.
The Current Situation
With consumer debt already hitting record highs before the coronavirus became a household name, debt collectors were already working overtime to harass those who owed money. Once the pandemic was in full force, they didn’t stop; instead, some professionals state that these debt collectors have grown even worse. With Philadelphians now stranded at their homes, debt collectors have the perfect opportunity to get in touch with them, filling them with fear about the future and threats to their financial security. And, as individuals spent more time laid off from work, their existing debt load continued to grow.
What the Future Holds for Debt Collection
While states are beginning to open back up, many people are still out of work or operating under reduced hours. As they scramble to pay daily bills such as rent and food, it’s likely that individuals will turn toward their credit cards, putting them even deeper in debt. Kiran Sidhu, who works in policy counsel for the Center for Responsible Lending warns that debt collectors are only likely to become more forceful in their attempts as the pandemic rages on. Instead of trying to help out those struggling financially, debt collectors are only worried about getting paid regardless of the cost. Pennsylvania’s statute of limitations on debt collection gives them an additional incentive to threaten and harass in an attempt to get as much money as possible before they can no longer sue.
On top of dealing with debt collectors, homeowners are also troubled to learn that many banks are now starting the foreclosure process.
How to Save Your Finances in the Midst of COVID-19
If you are one of the many people struggling with harassing debt collection calls, you are not alone. Across the country, other individuals are dealing with the same situation. While it can seem hopeless, there are legal steps you can take to get away from exhausting debt collectors. Bankruptcy is one of the most popular options to eliminate debt and regain financial freedom. As the pandemic continues to rage on, countless families have turned to bankruptcy to get them back on track. A bankruptcy can include eliminating debt entirely or simply refinancing financial obligations so that they are easier to manage.
With the moratorium coming to an end in Philadelphia County, at least for the foreseeable days, you can expect banks and collection callers to jump on the opportunity to finally collect payments again. And with eviction notices, sheriff sales, and foreclosures restarting they will be less lenient in expecting your repayment at the end of your forbearance period. Whether you fear losing your home or just want to make the harassing calls stop, finding a Philadelphia bankruptcy attorney or Philadelphia foreclosure attorney can be the best answer. Our attorneys will walk you through your options and help you get the relief you deserve from financial burdens and harassing calls.
COVID19 has challenged us enough as we struggle to keep ourselves and our families safe and healthy. Don’t let mounting debt add to your frustration. Contact Sadek and Cooper today to learn more about the ways that bankruptcy can stop the harassing collection calls and end the fear of foreclosures. In today’s world, it can be difficult to find the bright side of life. With the help of bankruptcy, there can be some light at the end of the dark tunnel and hope for a better tomorrow.
The attorneys at Sadek and Cooper Law Offices have handled thousands of Bankruptcy cases in Philadelphia and the surrounding counties of Montgomery, Delaware, Bucks, and Chester. We are also licensed in the State of New Jersey. Contact us today to schedule your free consultation.