Clifton, New Jersey, May 7, 2020 / PRNewswire / – Clifton, New Jersey lawyer Pamela Roedel, partner of Silverman & Roedel, LLC, focuses on the most frequently asked questions regarding the impact of the CARES Act on bankruptcy in the era of COVID-19. With the new laws and reliefs, it can be difficult to determine what you are entitled to and how the global pandemic will affect your current status.
- What is the CARES law? The CARES law was officially signed on March 27, 2020. CARES stands for Coronavirus Aid, Relief, and Economic Security Act. This law includes an amount of relief equal to $ 2.2 trillion. This law covers things like unemployment, helping small businesses, and even has some changes to Chapter 7 and Chapter 13 bankruptcy filings.
- Changes to be expected in bankruptcy matters in the CARES law: The CARES law aims to provide financial assistance to consumers and small businesses. There are also parts of the law that affect people currently in bankruptcy. You can expect the following changes:Federal payments are excluded from classification as income
People who are currently navigating a bankruptcy case or already paying in a bankruptcy case are required to report all of their income. In return, this income is then accounted for in the required monthly debt payments. The CARES Act does not classify any compensation received due to the federal emergency as income. Stimulus payments or increases in unemployment are not considered disposable income and therefore should not affect your required payments.
Individuals Can Make Changes Related to COVID-19
The government realizes that the majority of people’s incomes have changed in one way or another with COVID-19. Even people who are already in a bankruptcy plan can change based on new calculations. This same plan makes it possible to extend current bankruptcy filings. Currently, these changes are valid for one year, up to March 27, 2021.
- How to navigate a bankruptcy case during COVID-19: Bankruptcy can be overwhelming in itself. With many types of bankruptcies and a large collection of required documents, this can seem like a second job when trying to navigate the bank. New Jersey bankruptcy claim process. When you add in the ongoing changes that come with COVID-19, it can make the whole process even more confusing. Silverman & Roedel lawyers are constantly monitoring the latest changes and helping our clients manage bankruptcies during this difficult time. Whether you are active in filing for bankruptcy or considering filing for bankruptcy, now is the right time to contact one of our legal representatives.
About Silverman & Roedel, LLC
Situated in Clifton, New Jersey, Silverman & Roedel, LLC has represented clients in the areas of personal injury, traffic accidents, medical malpractice, Social Security disability, bankruptcy and beyond. With over 37 years of legal experience, they are dedicated and committed to their clients and strive to achieve the best possible outcome in every case.
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