How Does The Coronavirus Stimulus Bill Affect Bankruptcy?
The bill changes the dollar amount for a subchapter V Chapter 11 small business bankruptcy raising the limit to 7,500,000 of debt, the bill amends the definition of income to exclude coronavirus -related payments from the federal government, where they are not treated as income for purposes of qualifying to file for bankruptcy. Those same payments are not calculated as disposable income for purposes of confirming a chapter 13 plan. Finally, individuals and families currently in a chapter 13, where the plan has been confirmed prior to the bill passing on March 27, 2020, to amend their chapter 13 plan to modify it to a financial hardship due to the coronavirus extending their plan not to exceed seven years from the first day they filed bankruptcy.
I Cannot Make My Chapter 13 Payment Because I Have Been Laid Off Due To The Coronavirus, What Can I Do?
The new coronavirus stimulus bill allows debtors to amend their chapter 13 plan to financial hardship from the coronavirus to extend the payments not to exceed seven years, this generally will extend the payments by two years. Contact your attorney to amend your plan.
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