COVID-19 has changed everything in our world. Our society has even changed. We are no longer gather in mass to celebrate parts of our live. We are working from home; children are being home schooled; family meeting and gatherings are being conduct over the internet. It has also changed the economy. With the pandemic people are looking at options they would never have looked at before, bankruptcy being one.
With COVID-19 the CARES Act (Coronavirus Aid, Relief and Economic Security Act) has made amendments to certain provisions within the Bankruptcy codes as well. This was to assist those who have been affected by the COVID-19 pandemic.
For Chapter 13 if you have an existing plan that has been confirmed and are finding a “material financial hardship” due to the pandemic, you are allowed to try to get a plan modifications to give more time to make payments to around seven years after the first plan payment was due. This will help reduce your monthly payment obligations
Other stimulus and CARES Act do not include as your income when looking at eligibility purposes, nor does it count as disposable income. With the changes of COVID-19 has impacted on our society we will see a possible increase in filling of personal bankruptcies and will be available as needed. The current prediction is that there will be a mass filing of bankruptcy from May to June. As every other American we will just have to keep an eye on what changes will be coming and changing, as it seems to be changing daily.