I've drafted the outline of a proposed bill to submit to my state legislators. The idea is to have the legislature declare a "suspension period", where pre-existing debts, rents, mortgages, utilities, and insurance premiums would not need to be paid. It basically tries to impose an "automatic stay," as in the bankruptcy code, on all debts and ongoing payments.
I would - seriously - love to hear feedback if anyone is interested.
And if someone can come up with a clever name for the proposal, so much the better.
I. Loans
A. General principles applicable to all consumer or commercial loans (includes residential and commercial mortgages and deeds of trust, consumer and commercial auto loans, credit cards, student loans, deferred-deposit and check-cashing loans, payday loans, commercial loans and lines of credit)
* Stay of all collection or enforcement proceedings, including repossession of collateral or homes, initiation of new legal proceedings, and continuation of existing legal proceedings.
* This stay shall not apply to legal proceedings necessary to prevent waste or damage.
* Proceedings under this exception shall be limited to steps necessary to prevent such waste or damage.
* Failure to pay during and up to thirty days after suspension period shall not be a default or trigger any penalties or increases in penalties
* Interest or time-dependent fees shall not accrue during suspension period
* All notice and cure periods are suspended and extended for the length of the suspension period
* Failures to pay during or within sixty days after the end of the suspension period may not be reported to credit agencies
II. Leases
A. Real Property Leases
* Stay of all collection or enforcement proceedings, including acts to regain possession under unlawful detainer or similar statutes; initiation of new unlawful detainer or other legal proceedings; and continuation of existing legal proceedings.
* This stay shall not apply to legal proceedings necessary to prevent waste or damage.
* Proceedings under this exception shall be limited to steps necessary to prevent such waste or damage.
* Failure to pay during and up to thirty days after suspension period shall not be a default or trigger any penalties or increases in penalties
* Rent or other regular payments or fees shall not accrue during suspension period
* However, actual costs incurred by lessor during the suspension period may accrue during the suspension period. At the end of the suspension period, such costs may be allocated on a per-unit basis and applied evenly, without interest, over a period of at least six months after the end of the suspension period.
* “Actual costs” do not include the lessor’s overhead or general business expenses, repayment of debt, or payment of interest on the lessor’s loans
* All notice and cure periods are suspended and extended for the length of the suspension period
* Any lease that terminates during or within sixty days after the suspension period shall be extended until sixty days after the end of the suspension period. During the suspension period, no rent shall accrue, only actual costs as outlined above. After the suspension period, rent may accrue.
* Failures to pay during or within sixty days after the end of the suspension period may not be reported to credit agencies
B. Car Leases [and also possibly Business Equipment Leases]
* Stay of all collection or enforcement proceedings, including acts to regain possession with or without the legal process; initiation of new actions; and continuation of existing legal proceedings.
* This stay shall not apply to legal proceedings necessary to prevent waste or damage.
* Proceedings under this exception shall be limited to steps necessary to prevent such waste or damage.
* Failure to pay during and up to thirty days after suspension period shall not be a default or trigger any penalties or increases in penalties
* Rent or other regular payments or fees shall not accrue during suspension period
* However, actual costs incurred by lessor during the suspension period may accrue during the suspension period. At the end of the suspension period, such costs may be allocated on a per-unit basis and applied evenly, without interest, over a period of at least six months after the end of the suspension period.
* “Actual costs” do not include the lessor’s overhead or general business expenses, repayment of debt, or payment of interest on the lessor’s loans.
* All notice and cure periods are suspended and extended for the length of the suspension period
* Any lease that terminates during or within sixty days after the suspension period shall be extended until sixty days after the end of the suspension period. During the suspension period, no rent shall accrue, only actual costs as outlined above. After the suspension period, rent may accrue.
* Failures to pay during or within sixty days after the end of the suspension period may not be reported to credit agencies
III. Insurance premiums
* Stay of all cancellations until sixty days after termination of suspension period.
* Stay of all collection or enforcement proceedings, including repossession of property pledged under prior agreements; initiation of new legal proceedings; and continuation of existing legal proceedings.
* Failure to pay during and up to sixty days after suspension period shall not be a default or trigger any penalties or increases in penalties
* Interest or time-dependent fees shall not accrue during suspension period
* All notice and cure periods are suspended and extended for the length of the suspension period
* Failures to pay during or within sixty days after the end of the suspension period may not be reported to credit agencies
IV. Utilities
* Shall continue to provide service, to at least the level of service provided prior to the suspension period. Stay of all shutoffs until sixty days after termination of suspension period.
* Stay of all collection or enforcement proceedings, including initiation of new legal proceedings and continuation of existing legal proceedings.
* Failure to pay during and up to sixty days after suspension period shall not be a default or trigger any penalties or increases in penalties
* Interest or time-dependent fees shall not accrue during suspension period
* All notice and cure periods are suspended and extended for the length of the suspension period
* Failures to pay during or within sixty days after the end of the suspension period may not be reported to credit agencies