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Little Falls, NJ 07424
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Bankruptcy – CARES Act Impact

New Jersey Bankruptcy Lawyer!

With 30+ Years of Proven results!
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"I have never Lost a Chapter 7 Bankruptcy Case"
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About Ralph A. Ferro Bankruptcy Lawyer

Bankruptcy – CARES Act Impact

Bankruptcy CARES Act Impact

Written and Verified by Ralph A. Ferro, Jr., Esq.

Bankruptcy eligibility is not affected by CARES Act payments.    When you file bankruptcy, COVID payments  are not included in the income analysis.

Bankruptcy CARES ACT:

The money you receive from the CARES Act does not impact your income analysis when filing bankruptcy.

Unemployment Benefits:

However, unemployment benefits are included in the bankruptcy CARES Act analysis.    The extra supplemental unemployment ($300) does not count toward your Bankruptcy COVID analysis.  Also, 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.    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 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 demand repayment in addition to the regular monthly mortgage payments.


As a Board Certified Bankruptcy Lawyer, I provide bankruptcy help.

Bankruptcy Free Legal Consultation:

Call me today for a free bankruptcy consultation.

Before your income increases, contact me.

I will evaluate whether bankruptcy is right for you/which bankruptcy is best for you.