In mid-March, Pennsylvania took steps to protect its citizens from creditor collection actions. Millions of Pennsylvania residents were experiencing drastic loses of income through mass layoffs due to the COVID-19 pandemic.
State courts were closed, which left creditors unable to file or
proceed with lawsuits. Evictions were put on hold. Sheriff's sales were delayed and utility shutoffs were prohibited.
It’s been less than a week since Pennsylvania Gov. Tom Wolf ordered all bars and restaurants to provide take-out service only due to the Corona virus crisis. It’s been less than 24 hours since the governor ordered all non-life-sustaining businesses to close their physical locations. It’s been less than three full days that I have been working from home and it already feels like the calls and emails from people being impacted by these shutdowns are non-stop.
Nobody wants to file for bankruptcy.
It is all too common for people to delay reaching out for help. But more often than not, waiting can be a big mistake.
People don’t take credit card debt seriously enough. They don’t think the credit card companies can do much to collect money other than calling and sending letters. Some people find out the hard way just how far the bill collectors can go.
Almost everyone has been asked for financial assistance from a friend or a family member. Sometimes the friend or family member wants you to co-sign a debt for them.
Many people mistakenly believe that by being designated as the co-borrower, or secondary borrower, that the lender will only be able to collect against the primary borrower in the case of default. When a default arises, the co-signer can be surprised and greatly disappointed to find that is not the case.