L Law Firm

PLEASE DO NOT PANIC!

Fri, 17 Apr 2020 15:44:36 GMT

In these uncertain times, it is very easy to become alarmed over financial issues that come up. First, take a deep breath and evaluate your situation. The most important thing is to set your priorities. Usually, these are keeping the roof over your head, food on the table, lights and heat on, car running and insurance.

Right now, many of these creditors understand that times are difficult and they are willing to work with you. The key is communication. There is a moratorium on utility shutoff for now. This moves them much farther down the list of necessary expenses on a limited income. This does not mean that you should not pay them if you can, and you will have to deal with payments not made in the future, but for now, if you have to skip a payment it is not the end of the world. Similarly, the mortgage companies and landlords are prevented from evicting you or foreclosing you out of your home. They know this and are usually willing to discuss reduced payments during the crisis. Again, once times get better, you will have to catch up but for now, you can stretch your budget a bit further.

The last thing you should worry about is the general unsecured creditors. Credit cards and medical bills are at the bottom of the list of things to be paid in tight times. They may call and sound threatening, but do not do things that will hurt you in the long run. One of the worst mistakes you can make is to tap into your retirement funds to pay these unsecured debts. Once you take money out of your IRA or 401K, it becomes taxable income to you. The IRS is generally not as forgiving as other creditors. By taking money out of your retirement accounts early, you are trading a credit card problem for a tax problem. That money is there for your future, and I know it is tempting to pull it out now but Don’t.

Once everything settles down and you are back to work, then you can begin to get back on track with your other creditors. There are many non-profit budget and credit counselors who for little or no fee will work with you to help you restore your credit. If they cannot help you work out of your situation, the last resort is to file a bankruptcy. That is where we can help.

While bankruptcy should never be your first choice, you should be aware that the decisions you make while in a panic, can put you in a position where a bankruptcy is less effective. A bankruptcy can effectively deal with missed credit card payments and past-due medical and utility bills. It is not effective to deal with taxes due to early withdrawals from retirement accounts.

Before making a decision which you may not be able to recover from, call and we will be happy to discuss your situation.

Supplemental Security Income (SSI) recipients will receive automatic Economic Impact Payments.

Wed, 15 Apr 2020 15:47:07 GMT

Supplement Security Income Recipients Will Receive Automatic COVID-19 Economic Impact Payments

The Social Security Administration announced today that Supplemental Security Income (SSI) recipients will receive automatic Economic Impact Payments directly from the Treasury Department. Treasury anticipates these automatic payments no later than early May.

SSI recipients who have qualifying children under age 17, however, should not wait for their automatic $1,200 individual payment. They should now go to the IRS’s webpage at www.irs.gov/coronavirus/non-filers-enter-payment-info-here and visit the Non-Filers: Enter Your Payment Info section to provide their information.

If you find that you won’t be able to make mortgage payment

Fri, 10 Apr 2020 15:51:00 GMT

If you find that you won’t be able to make mortgage payment by the due date, you should contact your lender or servicer right away, before you miss your payment due date or make a partial payment. Your mortgage servicer is the company that sends you the bill for your mortgage payment. Write down all the steps you take, such as any phone calls you make and who you talk with, emails you send, and what types of information or documents you have shared. If you need help to figure out your options for catching up with future mortgage payments, contact a HUD-approved housing counselor through the Federal Making Home Affordable at https://www.makinghomeaffordable.gov/pages/default.aspx .

Information on protecting your finances during the Coronavirus Pandemic

Fri, 10 Apr 2020 15:49:52 GMT

For tips and the latest programs for staying on top of your finances during the coronavirus pandemic visit https://www.consumerfinance.gov/coronavirus/ .

Electric Disconnections

Fri, 10 Apr 2020 15:48:54 GMT

Wisconsin’s Governor Evers’ declared a public health emergency in Executive Order #72, the Public Service Commission (PSC) stopped disconnecting residential service for nonpayment and will reconnect service that had already been disconnected until the state of emergency has been lifted. Wisconsin already has a moratorium until April 15 on disconnection of Public Service Commission utilities used for heating, so this order extends that moratorium during the emergency and adds water not used for heating since water is needed for hand washing. Wisconsin Emergency Order #11 also extends the guidelines to PSC utility providers to stop assessing late fees, not require a deposit for reconnection, and now includes commercial, industrial, and farm accounts. The Energy and Policy Institute is also tracking utility disconnection suspensions across the U.S.on their website.