COVID-19 Update: The CARES Act and Bankruptcy Last month, March of 2020, The CARES Act was passed in light of the impacts of COVID-19. Specifically, there were changes affecting Bankruptcies – both current and prospective cases. The CARES Act (the “Act”) excludes Coronavirus related payments from the definition of disposable income and the Bankruptcy Estate, i.e. the government stimulus check. Receiving the stimulus check within 6-months of filing a Chapter 7 Bankruptcy will therefore not disqualify a Debtor from filing a Bankruptcy under Chapter 7. While the Act does not explicitly state this applies to Chapter 13, most Trustees, even… read more »
Posts Tagged ‘financial hardship related to COVID’
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