I AM SINGLE PARENT WITH 2 CHILDREN AND I HAVE BEEN OUT OF WORK FOR 6 WEEKS DUE TO THIS CORONAVIRUS AND I JUST STARTED GETTING UNEMPLOYMENT. BUT IT DOES NOT MAKE ENDS MEET. CAN YOU HELP ME?
At TaiebLaw, our first concern is with the health and wellbeing for you and your loved ones.
But how do we deal with the devastating financial impact that coronavirus has had on everyone?
At Taieblaw, I am still manning the office and will see anybody who has any type of financial problem either in person or remotely.
The CARES Act Can Help
On March 27, 2020, President Trump signed the CARES Act, which, among several other provisions, deals with certain provisions of the bankruptcy code.
One of the most important provisions for clients already in bankruptcy is the amendment to section 1329, which allows you to modify a plan for up to 7 years. Instead of a 60-month plan, you would be allowed an 84-month plan from when you started if your plan was confirmed before the President signed the CARES Act.
You have to show that “the debtor is experiencing or has experienced a material financial hardship due, directly or indirectly to the coronavirus disease…” and the modification is approved after notice and a hearing.
Please note there is a sunset period of one year. If you are not in bankruptcy and totally overwhelmed, the CARES Act makes it easier to file a chapter 7.
First the numbers for the Means Test have increased which has nothing to do with the pandemic. However, the Act also modifies the definition of current monthly income not to include payments received under the national emergency act with respect to COVID-19.
In addition, any payment made under the act does not constitute disposable income required to committed to a chapter 13 plan, which will help deal with people who want to file chapter 13 plans to save their property or people who are in chapter 13 who want to modify their plans.
Filing for Bankruptcy Has Never Been Easier
Thus, with these new laws, it will be easier to qualify for a chapter 7 and pay less to unsecured creditors if you file a chapter 13 case if you need to save your property.
Please note there is currently a 60-day moratorium on foreclosure for federally backed mortgages. Also, there is language for a forbearance for federally backed loan borrowers upon an affirmation of hardship for 180 days, but you then have to make arrangements to pay it back.
Also, this can be extended for another 180 days upon the borrower’s request. However, this is not a forgiveness so you will eventually have to pay it back. Also, even though the governor of New Jersey put a 90-day forbearance on mortgage payments, this will also have to be paid back in the future.
We’re Here to Help
Thus if you are having any type of financial problems especially from the coronavirus, we are here to help you either file a chapter 7, chapter 13 or modify your current chapter 13 plan if you qualify under the CARES Act.
You can either come into the office or we can do everything by email if you prefer. Whatever is best for you under these trying times.
Thus, if you are facing any financial problem, I am still here to help you. You can reach us at (856)235-4994.
Steven N. Taieb, Esquire has been a south jersey bankruptcy attorney
for over 35 years and is board certified in consumer bankruptcy
law by the American Board of Certification which is accredited by
the American Bar Association.