Bankruptcy Lawyer During Coronavirus Melbourne, FL
The COVID-19 pandemic has caused massive damage to the global economy. Here in the United States, there are currently almost 40 million people who have filed for unemployment insurance as businesses were forced to close their doors during shutdowns in states across the country. In addition, there are thousands and thousands of small businesses that are facing financial ruin and will likely have to close their businesses for good. All of these economic difficulties are forcing many people into devastating financial situations where bankruptcy may be the only option. If you are struggling with debt, a bankruptcy lawyer during coronavirus in Melbourne, Florida may be able to help.
Bankruptcy During the Coronavirus
In March, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law. Under the Act, there is a $2 trillion package to aid individuals and businesses impacted by the COVID-19 crisis.
The Act provided one-time payments for individuals of up to $1,200, $2,400 for married couples, and $500 for each dependent child. Unemployment benefits were also extended to freelancers, gig workers, and other self-employed individuals, as well as provide an additional $600 per week in addition to what the state’s unemployment payment amount is to anyone who files for unemployment benefits.
Small businesses are also eligible for small business loans and grants that can help cover employees’ paychecks, mortgage or rent, utilities, and other operating expenses to help keep the business afloat.
As a bankruptcy lawyer during COVID-19 in Melbourne, FL can explain, the law made provisions so that the financial benefits received under the CARES Act cannot be counted as disposable income or currently monthly income when determining if a bankruptcy filer qualifies for Chapter 7 or Chapter 13. The revisions also allow for any current Chapter 13 filer who have existing confirmed repayment plans to request an extended modification to their plan if they are dealing with financial difficulties because of the COVID-19 crisis.
The CARES Act also addresses Chapter 11 bankruptcy for small businesses. The Act raises the debt threshold that allows the business to file for bankruptcy to $7.5 million (temporarily for the next year). There are also provisions that address the waiving of quarterly fees under certain circumstances and extending out payments of expense claims, as well as help simplify and speed up the bankruptcy process. A Melbourne, FL bankruptcy lawyer during COVID-19 crisis can go over the details to see what your business qualifies for.
Let Us Help
These are financially trying and uncertain times for many Americans and there does not appear to be any quick end in sight. If you are considering filing for bankruptcy, either individually or for your business, call Arcadier, Biggie & Wood, PLLC to speak with a bankruptcy lawyer during coronavirus Melbourne, FL families recommend. We will evaluate your situation and discuss what legal options are in your best interest.