We are living in unprecedented times. If your clients were already struggling with debt before this outbreak, then they're likely even more worried now, as they try to figure out whether Chapter 7 or Chapter 13 bankruptcy is an option, whether they have any means to resolve their debt or worse, with layoffs and furloughs, whether they'll lose their home and all their belongings while trying to stay healthy in a global pandemic.

Fortunately, they have some options that you may not know about. In response to layoffs and temporary business closures, many financial institutions and lenders are implementing special programs to help people in need. Whether they already have a lot of bad debt or they're looking at a period of financial insecurity, these resources may help them keep their heads above water, even in quarantine.

Beware of Scams

Before we get to those resources, as much as we hate it, we have to talk about the threat of scams that could leave your clients in worse financial shape than they're already in. Scammers are still out there–even in this terrible time. Your clients should not give their personal or financial information to anyone who calls claiming to have a solution for their debts. And, if they receive an email from a suspicious account, don't click on any links and do not give them any requested information. If they aren't sure if a communication is from their bank or another credible institution, call or email them directly and ask about the message they received.

In all likelihood, though, they probably won't have creditors or anyone else reaching out to help them in advance. But they do have some means to protect themselves, even if they have no income at this time.

Expanded Unemployment Benefits

If they've been laid off, and they are not collecting income right now, they can go ahead and file for unemployment with the Georgia Department of Labor. The federal government's recent economic stimulus package includes provisions for expanded unemployment benefits to help people in need right now. So, even if they were not working for a business that paid unemployment insurance before they were impacted by the pandemic, they may still qualify for benefits.

Find Out if Their Student Loans Are on Hold

According to the Consumer Finance Protection Bureau, federal student loans are now on hold, as of March 27. If your clients' student loans are federally held, they do not need to apply to have them suspended, and interest will not accrue on their loans while suspended. They can learn more at the Consumer Financial Protection Bureau website.

Creditors, Utility Companies and any Other Lenders

Of course, not all of your clients' debts are associated with or held by the federal government. What can they do about credit cards, mortgage and other private loans? Debt resolution is a great way to simplify life and consolidate debts into a single monthly payment, but they may not be there yet.

And, if your clients talk to their creditors now, they may not need to take that route in the future. A lot of mortgage lenders, landlords, credit card companies and utilities companies are anticipating that people like your clients may have issues paying their bills in the coming months. As a result, many have already set up programs to assist them. Contact them now and they may be able to take a load off until your clients get back to work.

Other Resources

These organizations and companies are helping people in financial distress right now, and one or more of them may be able to help your clients:

The Giving Kitchen is a nonprofit organization, established to help food service and hospitality workers in need.

Walmart, Starbucks, Target and other corporations are offering assistance for their employees who've been laid off during the coronavirus pandemic.

The U.S. Small Business Association offers disaster assistance for small business owners. According to Gov. Kemp in a press conference on April 1, Georgia is one of the first states to have been approved for expanded small business loans, which could help if your business is temporarily shut down due to the pandemic.

Buddy Huntley is a partner at Holston & Huntley in Atlanta, where he represents clients seeking debt resolution or filing for bankruptcy protection.