COVID-19 Resources

Khan Law is offering consultations via phone of video conferencing and free access to resources to help you succeed through turbulent times.

Yes, they can. Many of these debt collection agencies have closed their offices, but are still able to work remotely. They can still call you, harass you at work, and force you to pay these debts you cannot afford at this time. Court closures have slowed things, but they can still file lawsuits against you. Bankruptcy may be your only option in permanently wiping out your debt and eliminating these debt collectors from your life. 

Yes, they can. If there is a money judgement against you, they can levy your bank account and seize those funds in that account. Additionally, if you owe debt to the same bank that you possess a checking account with, they can also reach into your account and take part of your stimulus check to satisfy the debt you owe them. For example, if you have a credit card with Chase that is in default, Chase credit card can reach into your Chase checking account and seize part of that stimulus check that hits your bank account. 

If you are experiencing reduced hours or job loss due to Covid 19, your payments are suspended on your federal loans up to 6 months. No interest or penalties are applied during this time. This does not apply to FFEL or Perkins Loans not held by the US Department of Education. 

Private student loans are similar to credit card or personal unsecured debt. Many private student loan companies are willing to work with you to either stop or lower your monthly payments. Call your company and see which options are available to you. 

NO. Governor Gavin Newsom has put a moratorium on evictions throughout California. However, if you can afford to pay your rent, you should. It is largely unclear how renters will be able to pay rental arrears back once the crisis passes. 

The CARES Act helps homeowners with federally backed loans only. You can call your mortgage company and request a suspension on payments if you are experiencing financial hardship due to Covid 19. During this forbearance, you will not accrue any interest, late fees or penalties. However, if you have a non-federally backed loan, the CARES ACT does not apply to you. You will need to call your individual mortgage company and ask them what options are available to you. 

If you have mounting credit card/cash loans/payday loans and your credit score is so low that you cannot even obtain new credit at this time, filing for bankruptcy will resolve this. Once you file for Chapter 7 bankruptcy, all that unsecured debt gets wiped away. After you obtain your discharge and your case is closed, you can apply for new credit cards, which will help rebuild your credit score quickly. 

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