Frequently Asked Questions

How Does the CARES Act affect Residents in Hackensack?

Ever since the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed in late March 2020, individuals and business owners alike have wondered how the bill might affect them during bankruptcy. At The Law Offices of Marc G. Alster, we want to help provide people the knowledge they need to know to protect their interests during the COVID-19 pandemic.

That’s why we’ve prepared this post to address a few questions that will commonly be asked about how the CARES Act will affect people and their finances during bankruptcy.

Read on to learn more and contact us or call (201) 878-4630 to arrange a consultation with our attorney if you have a nuanced situation or need help with your specific legal problems.

How Does the CARES Act Help If I’m a Small Business Owner Who’s Considering Bankruptcy?

The CARES Act provides less expensive options for more businesses to reorganize their debt under Chapter 11 when they owe up to $7.5 million. When you qualify for Chapter 11 while the CARES Act is in effect, you will also be able to maintain control of your company’s operations throughout the bankruptcy reorganization process. This new streamlined approach to Chapter 11 will be made available to all qualified small business owners one year.

Does the CARES Act Help Me If I’m Already in Chapter 13 & Can’t Make My Plan Payments Due to Loss of Employment?

Yes. The CARES Act will permit modification to bankruptcy plans for those already in Chapter 13 bankruptcy and are experiencing new financial hardship due to the COVID-19 pandemic. For one year, qualified applicants can request extensions of their Chapter 13 plans by up to two years or 24 additional payments.

Does Receiving a Stimulus Check from the Federal Government Impact My Bankruptcy Qualifications?

No. Due to the CARES Act, any stimulus payments you get from the federal government cannot be used to determine your eligibility for bankruptcy. Also, when you file for Chapter 13 bankruptcy, your stimulus check does not have to be turned in to your creditors.

Are Unemployment Benefits Considered Taxable Income?

Yes. Even before the COVID-19 pandemic, your unemployment insurance benefits counted as taxable income. This has not changed in light of the crisis. When tax season comes around, be sure to look out for a Form 1099G that will be issued by the California Employment Development Department that you will need to use to fill out your tax return.

What If I Have a Specific or Nuanced Question?

If you’re in a complicated legal and financial situation and aren’t sure how you may be impacted by current legislation, you should consult with a bankruptcy attorney. At The Law Office of Marc G. Alster, our attorney has more than 30 years helping people resolve their bankruptcy problems from routine tasks to complicated legal maneuvers.

If you’re thinking about filing for bankruptcy during the COVID-19 pandemic or need held adjusting an existing plan to account for renewed financial hardship, we can help.

Contact us online or call (201) 878-4630 to reach out to our attorney and tell us you need legal assistance as soon as possible.