Tag: covid-19

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Stimulus Payments and Bankruptcy

With three rounds so far of stimulus payments, many clients are asking if these payments are subject to being taken by the Chapter 13 or Chapter 7 case trustees. The first two rounds were specifically protected. However, the third round was provided under a reconciliation act, so it was much more up in the air. Just recently the United States Trustee issued guidance to the local Chapter 13 and Chapter 7 trustees that they should not try to take the third stimulus payment, or the child tax credit. But if a local trustee thinks that such action is necessary, they can contact the United States Trustee for further guidance.

Be sure to contact your attorney with any questions.

Do you need an attorney to help you with bankruptcy? We would be happy to help. You can reach us at www.tennesseefirm.com, 731-424-3315, or any of our other contact methods.

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Covid 19 related Bankruptcy Law Changes

President Biden recently signed an act that was very helpful to bankruptcy clients. Essentially, if your case was confirmed prior to March 27, 2021, you are able to extend your Chapter 13 plan to up to seven years total. So if you started with a five year plan, as most people do, you can now add up to two more years to that plan to make it more affordable. If you started with three or four years, you can usually extend up to five years anyway, but this new act would allow those cases to also go up to seven total years, provided they were confirmed prior to March 27, 2021.

Does your case qualify for this extension? Contact your attorney to find out.

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Covid-19 and bankruptcy

Covid-19 has brought us so many questions about so many things. One question we get is “Can I still file bankruptcy?” The answer is still very much “Yes!” Then, it’s usually “Well how will that work? Will I have to go to the courthouse?” Here in West Tennessee, the answer for the foreseeable future is that you will not have to appear in person at the courthouse. While there may be exceptions, in person hearings are very rare right now.

I have had the privilege of serving along side case trustees, judges, and other court personnel this year on the Committee on Reopening the Bankruptcy Courts in West Tennessee. At the present time, there is not a hearing you will have to attend in person generally. If you file in Jackson, there is one telephone hearing you will need to attend. This telephone hearing is a conference over the phone with your case trustee, your attorney, and possibly creditor’s attorneys. Again, this is over the phone, so you no longer have to take off work to come to court. This also helps those who live far away from Jackson in not having to spend money on the gas to travel, and those who are concerned about being out of the house due to Covid.

There are other hearings that happen throughout your bankruptcy case that your attorney normally will still be able to handle without you having to appear. Attorneys are handling court electronically for now, as in person hearings are still only held in very rare situations.

If you are thinking about bankruptcy, or just trying to figure out how to handle the debt that Covid brought to your doorstep, don’t hesitate to reach out for a consultation. We enjoy speaking with people and talking through the options. If bankruptcy turns out to be a good option for your situation, we will cover every question you have so you can make the best decision for you and your family. Just give us a call at 731-424-3315, or visit us at www.tennesseefirm.com. We look forward to serving you!

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Bankruptcy during COVID-19

Many people are struggling right now with decreased income, but they have the same bills (maybe even more!) since before COVID-19 started. Some are wondering can they still file bankruptcy. The answer is YES! You are still able to file bankruptcy under these conditions, and we are happy to help you navigate this new world. We can meet with you in person, talk over the phone, or even by video conference for an initial discussion on your options and how to reach your goals.

Many people do everything they can to avoid filing bankruptcy, so by the time we talk to them they are ready to file immediately. Other times, people know a change is coming and want to start planning the next right step.

For so many people right now in Tennessee, the end of July will also bring the end of the Federal Pandemic Unemployment Assistance payments. That is $600 per week that many people will no longer receive. We can start planning now to determine what the next right step is. We do not have to wait until that income stops coming in.

For others, pay cuts are still happening. Layoffs are still newly announced every week. So for people who are living paycheck to paycheck, the time to start planning may be before you actually get the call that your pay has been cut or you’ve been part of the latest rounds of layoffs. You don’t have to wait to start planning.

For some people, we are even able to say that bankruptcy isn’t the best option, and perhaps other options might be good to try first.

Either way, we are happy to discuss your goals and see how we might be able to help. Just give us a call at 731-424-3315 and we will find a time convenient for you to discuss everything and ask all the questions you have so you can make the most informed decision. I look forward to seeing you soon!