What a year it has been in Chilliwack and the Fraser Valley, surreal to believe that 12 months ago, Covid-19 was even not a topic of conversation.
Our families continue to pull together and stand strong through the course of the second wave of Coronavirus, Covid-19. By no means has it been easy, the physical, the emotional and the financial challenges have been real on humanity and there has a significant toll paid by the good people within our community.
Our heartfelt thoughts and prayers go out to those that are suffering through the loss of a loved one, particularly during this time of year.
Negative financial impact due to Covid-19 pandemic varies from household to household, with the most vulnerable groups; immigrants, women, seniors and children disproportionately experiencing the greatest losses.
During the height of the pandemic, lenders and the government took aggressive measures to help Canadians. A whopping 775,000 people took advantage of mortgage deferrals and 8.9M Canadians applied for CERB.
Regrettably, families are still experiencing reduced or lost wages, businesses closing, mortgage foreclosures, rent repayment plans and loan deferrals repayments. The financial outlook for plenty of our citizens is grim as payment deferrals expire and CERB benefits are under scrutiny from CRA.
What to do if you can’t not pay deferred payments?
When the payment deferral agreement expires, you are expected to resume payments. In most cases, the commitment to resume payments does not include a lump or balloon payment to catch up on missed payments, which is somewhat good news. However, there is a distinct possibility that the resumed payment will be higher than the pre-covid payment, as the deferred amount was added to the balance owing.
When you can not pay your deferred payments, you have several options. First, we suggest you speak directly to your lender, mortgage company and see if there is any further ability to extend the deferral period or rework the repayment structure.
If you find yourself in the situation where you can not restructure your financing with the lender and you can’t resume payments, a consumer proposal may help you keep your home and get you back on track.
A consumer proposal, although it does not restructure secured loans or deferred rent or deferred mortgages, it will restructure your cash flow, so you can afford your mortgage or rent payments. In particular, it will reduce unsecured debt, like credit cards, bank loans, lines of credit, payday loans, CERB repayments, CRA debt, into one manageable, interest free payment.
We are here to help, Providing services to assist in recovery.
We have spent the last decade helping residents find workable solutions to economic hardship. Providing a roadmap that removes their financial burdens and sets them on a path for complete recovery.
We will help you
Sheila Smelt and Associates is well experience, compassionate and has been successfully furnishing folks with guidance, experience, and regulated legal mechanisms to reduce debt. A toolbox filled with all the equipment they will need to achieve a positive financial outlook and a debt free journey.
Don’t struggle through this time alone, our team is available to help. We have the means to provide virtual counselling, electronic signings and have implemented safety protocol to keep everyone healthy.