Published On: April 26, 2020

April, 2020 – The Federal Trade Commission released suggestions on managing your bills during this very difficult time (COVID-19 quarantine).

paying bills during COVID-19COVID-19 has disrupted life for everyone on the planet.  Each of us is asked to sacrifice for the health of the entire nation and world.  Unfortunately, that sacrifice comes at a cost for many.  They are unemployed or their income has been reduced, but the bills for their regular living expenses (rent, food, utilities, car payment, and insurance) continue to come, month after month.  Yes, there are a few programs that might assist, but most of the programs only delay the inevitable – THEY MUST BE PAID.  You don’t get a free place to live.  Even if there are mortgages and rental programs, they don’t forgive the debt. Instead, the payments are just postponed to a future date (which may only be 3 months in the future).

Seniors are hit extra hard: not only they are one of the most vulnerable population to COVID-19, but most are on a fixed income, so do not have additional resources if they have unexpected expenses (medical, etc.).

In summary here is what the FTC suggested:

  • Know what you owe and will owe for the next year.  Make a list of your monthly bills: rent/mortgage, car payment, utilities, student loans, medical bills, and anything else. Look at your bank statements and credit card bills to find occasional expenses (such as annual insurance payment or insurance paid every quarter) and those expenses that only happen occasionally, but are very expensive (such as medical, home and car repairs).  By putting this in writing you have something to compare your current spending.
  • Don’t be afraid to ask for help, 90 percent of us are in the same situation: Pride can kill you!!  If you are not taking care of yourself, then you are more susceptible to the virus. Many companies have special programs to help people right now. Contact the companies you owe money to and try to work out a new payment plan with lower payments or delayed due dates. Make sure to get any changes in writing.
    • Find out if your state or local government offers programs that will allow you to hold off on paying some bills right now.
    • Trouble paying your mortgage? Here’s some advice on how to manage that. If you have a government-backed mortgage, you may be able to delay the payment by contacting your servicer.
    • Need additional help? Check out ftc.gov/creditcounselor for tips on how to choose a counselor who really helps you out.
  • Prioritize your expenses: If you still can’t pay everything on time, look at what would happen if you couldn’t pay each bill and decide which to pay first. Is a place to live and food to eat more important than paying credit cards?  I would think so.  Do not worry about your credit report at this stage – it is, what it is.  There is nothing you can do about it today.  Instead, focus on having the basic necessities.
  • Educate yourself about your options and the legal obligations of the creditors.  Don’t assume what a creditor says is accurate (they are in the business to get paid and will lie).  Rules govern what a creditor or collection company can do.  Some of these rules are brand new (it takes new law at least five years to be interrupted by the courts).  Know your rights: what is protected from creditors? Can creditors take my stimulus moneyHow does bankruptcy work? Check out the FTC’s advice on how to cope with debt in the short term, and how to get out of debt when you are able.
  • scamWatch out for scams: In stressful times, scammers are everyone and focus on our seniors, but you too may be vulnerable. Beware of any company that guarantees that creditors will forgive your debts, or makes you pay up front for help. If you are looking for debt relief, make sure to find help you can trust.

paying bills during COVID-19

MUSINGS FROM DIANE:

paying bills during COVID-19This is a very scary time for everyone, but please remember ‘you are not in this alone’.  But you are the only person who can take care of you (even if you are in a busy household).  Today, even more than in the past, it is important to know your needs (financial and emotional).  Eventually we will return to a new ‘norm’, but it may not be the norm we had last year.  Please don’t ignore the current situation.  Instead, every day take a few minutes to lay out a survival game plan.  Of course, no one know how long this situation will continue, so be flexible in your plan.  Focus on what you need to survive – food, a place to live.  NEVER be bullied by a debt collector to send money that you should use on life necessaries.
NOT SMART: Buying a fancy gift for your young child is not going to help them, if there is no food in the house.  It is amazing how resilient children are in emergency situations.  Don’t hide the truth from them, but make sure they are involved in some household decisions.
By |Published On: April 26th, 2020|Last Updated: March 4th, 2023|

Share this article

About the Author: Diane Drain

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau

“You folks are the BEST OF THE BEST in Arizona.” M.H.

You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.

“My only regret is that I didn’t find Diane sooner.” K.H.

I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.

“Filing for bankruptcy can be a stressful life event” R.A.

Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.

Related Posts

  • PEOPLE MAY WANT TO FILE A TAX RETURN – EVEN IF THEY ARE NOT REQUIRED TO DO SO Posting from the IRS IRS Tax Tip 2023-27, March 2, 2023 [...]

  • New Consumer Law Rights Taking Effect in 2023. This NCLC article lists federal and state consumer law rights scheduled to go into effect or expire, during the period from November 17, 2022, through December 31, 2023. Other consumer law changes will be enacted later in 2023 and will go into effect in 2023; this article lists changes whose effective dates have already been scheduled.

  • Published On: January 22, 2023

    New Consumer Law Rights Taking Effect in 2023. This NCLC article lists federal and state consumer law rights scheduled to go into effect or expire, during the period from November 17, 2022, through December 31, 2023. Other consumer law changes will be enacted later in 2023 and will go into effect in 2023; this article lists changes whose effective dates have already been scheduled.

  • Want to avoid dishonest debt collectors?  Watch this video from FTC’s Consumer Advice By Joseph Ferrari,July 22, 2022 (reprint from FTC, Consumer Alerts) During Military Consumer Month 2022, the FTC [...]

My intention is to put you back in control of your life
Start with $0 down*. We provide affordable payment plans.