COVID-19 and bankruptcies: How the CARES Act will impact consumer bankruptcies

No comments

Image by Simon Hill from Pixabay 
Urban News Staff Reports

Clifton, NJ attorney Pamela Roedel, partner at Silverman & Roedel, LLC, focuses on the most frequently asked questions regarding how the CARES Act will impact bankruptcies during the age of COVID-19. With new laws and reliefs, it can be difficult to determine what you are eligible for and how the global pandemic will affect your current status.

1.) What Is the CARES Act? The CARES Act was officially signed into place on March 27, 2020. CARES stands for the Coronavirus Aid, Relief, and Economic Security Act. This act includes an amount of relief that equals $2.2 trillion. This act covers things like unemployment, small business relief, and even has some changes to Chapter 7 and Chapter 13 bankruptcy filings.

2.) CARES Act Bankruptcy Changes to Expect: The CARES Act is intended to help consumers and small businesses financially. There are also portions of the act that affect those currently in bankruptcy. You can expect the following changes:

Federal Payments are Excluded From Classification as Income
Individuals who are currently navigating a bankruptcy case or who are already paying into a bankruptcy case are required to report all of their income. In return, this income is then counted toward the required monthly debt payments. The CARES Act does not categorize any compensation received because of the federal emergency as income. Stimulus payments or unemployment increases are not considered to be disposable income and therefore, they should not affect your required payments.

Individuals Can Make COVID-19-Related Modifications
The government realizes that the majority of people's income has changed in one way or another with COVID-19. Even individuals who are already in a bankruptcy plan can modify based on new calculations. This same plan allows current bankruptcy filings to be extended. Currently, these changes are valid for one year, until March 27, 2021.

3.) How to Navigate a Bankruptcy Case During COVID-19: Bankruptcy can be overwhelming on its own. With numerous types of bankruptcies and a large collection of required paperwork, it can feel like a second job as you attempt to navigate the New Jersey bankruptcy claims process. When you add in the ongoing changes that come with COVID-19, it can make the whole process even more confusing. The lawyers at Silverman & Roedel are constantly following the latest changes and helping our customers navigate bankruptcies during this difficult time. Whether you are active in a bankruptcy filing or you are considering filing for bankruptcy, now is a good time to reach out to one of our legal representatives.

Located in Clifton, NJ, Silverman & Roedel, LLC has represented clients in the fields of personal injury, automobile accidents, medical malpractice, social security disability, bankruptcy, and beyond. With over 37 years legal experience, they are dedicated and committed to their clients and seek to achieve the best possible result in each and every case.

No comments

Post a Comment