Bankruptcy eligibility is not affected by CARES Act payments. COVID payments are not included in the income analysis when filing bankruptcy.
The money you receive from the Cares Act does not impact your income analysis when filing bankruptcy.
However, unemployment benefits are included in the bankruptcy COVID Act analysis. The extra supplemental unemployment ($300) does not count toward your Bankruptcy COVID analysis. Also, the supplemental unemployment is not taxable.
More than 1.68 million New Jersey workers have applied for unemployment benefits since mid-March. Of that number, 1.44 million have been deemed eligible. Of those, 96% have received some money and tens of thousands are still waiting for benefits.
You should work with your accountant. Determine if you should be deducting taxes from your regular unemployment. You do not want to owe money back when you fill out your 2020 taxes.
Now might be the right time to make an appointment. We will discuss whether filing bankruptcy is right for you. I will explain in detail the Bankruptcy CARES Act analysis.
Many are struggling and unemployment is running out. CARES Act money has helped. It is envisioned that debtors will find it increasingly difficult to meet their monthly debt payments. Also, foreclosures will begin again. As you know, foreclosures have been on hold. The banks are now permitted to file foreclosures. They are completely ready to begin the foreclosure process. There is a backlog of foreclosures. I am told these files are numerous and all set to start where they left off.
The forbearance periods have ended. Many banking institutions are not permitting debtors to put the arrearages at the back end of their mortgages. Banks are demanding repayment in addition to the regular monthly mortgage payments.
I am a Board Certified Bankruptcy Lawyer https://www.abcworld.org/about-abc . I am here to provide bankruptcy help.
I offer a free bankruptcy consultation. https://njbankruptcylawfirms.com/bankruptcy-lawyer-free-consultation-near-me/ Before your income increases, allow me to evaluate which bankruptcy is best for you.