Clark & Washington

Bankruptcy Law Changes During COVID-19 and CARES Act Help

COVID-19 is causing uncertainty throughout the world as jobs are lost and people are scrambling to figure out their finances. Atlanta bankruptcy attorneys work closely with clients who have already started a bankruptcy or are in the process of determining whether it’s time to file for bankruptcy. The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, became a law on March 27, 2020, and this new law has made temporary changes to the bankruptcy code throughout the United States.

The CARES Act and Your Bankruptcy

Atlanta bankruptcy attorneys can help you file for bankruptcy, or modify your current bankruptcy filing in order to comply with the current CARES Act changes and all of this can be completed over the phone. As the country deals with the pandemic of COVID-19, any stimulus payment that you receive will not be counted as current monthly income. In addition, federal payments are not to be construed as disposable income and will not be taken away from you because you have filed for chapter 13 bankruptcy. When you file for chapter 13 bankruptcy, all disposable income is considered as you create a plan to use your disposable income to pay back debtors. The CARES Act protects your stimulus payment, allowing you to use the money for your immediate needs.

Modifying Your Chapter 13 Bankruptcy

The COVID-19 pandemic may have caused you enough financial hardship that your chapter 13 bankruptcy plan is no longer viable. Atlanta bankruptcy attorneys can work with you to modify your filing, as long as the financial hardship is COVID-19 related. You may be able to add seven years to your chapter 13 payment plan, which would lower your monthly payment obligations to your debtors and give you the financial stability you need. You will have one year from the date of the CARES Act on March 27, 2020, to file an amended plan for your chapter 13 bankruptcy and explain why COVID-19 has caused either direct or indirect financial hardship.

Our Atlanta bankruptcy attorneys are ready to help you deal with the uncertainties that the COVID-19 pandemic is bringing. If you are looking at your bankruptcy options, or you are no longer able to pay your monthly chapter 13 payment plan because of COVID-19, the CARES Act is designed to help. The court system continues to deal with cases, whether the building is open to the public or not.

As you go through your bankruptcy during a pandemic, you may be able to find short term relief in the form of deferred car or mortgage payments to help ease your financial burden. If you aren’t sure what you are going to do and you feel mounting financial pressure, it’s time to look for Atlanta bankruptcy attorneys that can get you through this difficult time. Whether you already have a chapter 13 repayment plan, or you are just beginning to look into bankruptcy, you can get the help you need at this difficult time.

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