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COVID-19, Evictions, and Mortgage Moratoriums

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COVID-19, Evictions, and Mortgage Moratoriums

The COVID-19 crisis left many Hoosiers in a tough spot financially. When eviction and mortgage moratoriums prevented people from losing their homes during the pandemic, it came as a huge relief.

Now many of these moratoriums are approaching expiration and you’re probably wondering what happens next. Will you lose your home? If you’re behind on your payments, here are some options to explore.

Ask Your Landlord About Extensions and Exceptions

Some renters are lucky enough to have an easygoing landlord who’s willing to work with them to avoid eviction. A number of Indianapolis-area property management companies are giving extensions and making exceptions to encourage their renters to stay put, despite the impact of the pandemic.

But not everyone is so lucky. Some landlords are tougher than others. Even if your landlord is willing to make some kind of deal with you, there may still be a huge balance due on your account that must be settled somehow.

Ask your landlord exactly how much you owe and how you might be able to clear out your old, overdue balance. They may be willing to work with you, or they may dig in their heels and prepare to evict you. Either way, you stil have some options.

Here’s What to Do if You Are Facing Eviction

It’s time to start planning now to prepare for the road ahead. If your landlord insists on keeping a large overdue amount on your account, a bankruptcy can help you clear that balance and stop them from pestering you for old rent payments.

Bankruptcy may allow you to finally get your landlord off your back and stay in your rental, at least temporarily. It may be possible in some cases to reorganize the rent arrears. That is because landlords have to follow bankruptcy laws, just like everyone else, and they may have no option but to take a payment from a bankruptcy reorganization plan.

In some cases, eviction is inevitable – or even welcome, if you dislike your rental! You may need to accept the eviction and move, with a bankruptcy discharge helping you secure a new rental home or apartment. Chapter 7 bankruptcy is a way to erase old rental debt and start fresh.

What to Do if You Are Using the CARES Act

If you’re a homeowner/homebuyer using a Coronavirus Aid, Relief, and Economic Security (CARES) Act forbearance, you’re probably facing a large future mortgage payment that will be difficult to make. Now’s a good time to contact your mortgage company to talk about modification.

Modification is a way to adjust the terms of your mortgage, permanently or temporarily, to allow you to get caught up. If your mortgage company will not work with you on modification terms you can afford, a bankruptcy lawyer may be able to help you use Chapter 13  bankruptcy to save your house and free yourself from worrying about those overdue mortgage payments.

Chapter 13 bankruptcy can force a creditor like your mortgage company to accept a reorganization plan. This means you have the opportunity to spread out your overdue balances over a period of up to five years.

These are just a few of the bankruptcy strategies you can use to stay financially stable during and after the COVID-19 pandemic. Call us today for a free consultation. We are here to help you find the right solution for your situation.

Sawin & Shea—Indianapolis Bankruptcy Attorneys

Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process.

Please do not hesitate to call us today at (317) 759-1483 or send an email for a free consultation. We are ready to help.

Video Transcript:
Hello, my name is Andrew Sawin. I’m one of the attorneys at Sawin & Shea.
 I wanted to talk to you a little bit today about COVID, the pandemic, and mortgage and eviction moratoriums that are in place right now. If you are in an apartment, or a rental house, and you have fallen behind on your rent, right now, landlords are stayed from being able to pursue an eviction, but that’s going to end at some point in the near future.

It’s time to start planning, now, to deal with that situation. If you don’t think your landlord’s going to make some kind of a deal to help you get caught up on your rent, a bankruptcy can help you clean out the old rent arrearages, and move forward. Now, you’d have to do that with a new rental space, but it would pave the way for you to be able to move on, get a new apartment, get a new rental house, and find a new place to live with a fresh start.

If you’re in a house that you’re buying, and you are under a CARES Act forbearance, and you don’t know how you’re going to get that caught up, now is the time to start thinking about modification with your mortgage company. If the mortgage company doesn’t allow you to modify the loan to get caught up, we can use a chapter 13 bankruptcy to help you save the house and get caught up. We can force the creditor to accept a reorganization plan, where you can pay that arrearages back over a period of up to five years. So, we do have options in bankruptcy. Call us today for a free consultation. We’d be happy to talk to you about your current situation. Thank you very much.

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