In March of this year, in response to the impending economic downturn, the US government passed the CARES Act. Beyond the massive $2 trillion dollar stimulus package, the Act has allowed for a number of different changes to existing laws to make it easier for both businesses and individuals impacted by the COVID-19 pandemic to whether the crisis.
Among these includes changes made to the Chapter 13 Bankruptcy Law. Where the previous maximum repayment plan duration was set to 5 years, struggling debtors can now have it extended by a further 2 years. In addition, any COVId-19 related federal emergency relief payments will not be taken into account by the bankruptcy court in calculating your current monthly income.
These changes apply to all bankruptcy cases filed after the Act was enacted and is likely to remain applicable for some time.
Have any further questions regarding the CARES Act or bankruptcy? Schedule your free consultation with our legal experts by calling 512-640 3340.
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