Last Friday, March 27, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security Act, also known as “CARES”. You have probably heard about the stimulus checks to individuals and families. One of the parts of the law that many people don’t know is that the law provides changes to the US Bankruptcy Code. This provides relief to people who are already in or considering filing a bankruptcy petition.
Here’s How Bankruptcy Changes Under The CARES Act
Under the CARES law, you do not have to include the Coronavirus COVID 19-related stimulus payments from the federal government as income when filing a Chapter 7 liquidation or Chapter 13 reorganization bankruptcy. In addition, the Coronavirus COVID-19 stimulus payments do not need to be included as disposable income.
In addition, if you are already in a Chapter 13 bankruptcy, the CARES law allows you to seek payment plan modifications if you are experiencing a material financial hardship due to the Coronavirus COVID-19 pandemic, including extending your payments for up to seven years after your initial plan payment was due.
Work With An Experienced Bankruptcy Attorney Who Can Help You!
If you find yourself in financial distress, whether it is caused by the Coronavirus COVID-19 pandemic, or due to other circumstances, contact us right away. The Law Office of Joel R. Spivack is specifically dedicated to all legal matters relating to bankruptcy. We are an AV Rated Bankruptcy Law Office with 30 years of experience practicing bankruptcy law. The Law Office of Joel R. Spivack Esq. can be reached at 856-488-1200.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney/client relationship. If you are seeking legal advice, please contact our law firm directly.