COVID 19 AND MY BANKRUPTCY
The recent Covid pandemic has hit many families financially. As businesses adjust to the rise and fall of new cases of infection, there is still uncertainty. Federal and state governments have implemented measures to protect the health and financial lives of families and businesses have responded with varying options to delay the payment of mortgages, car loans and credit card payments.
Federally, the U.S. Congress has passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Among other relief, this act has deferred the payment of some government backed student loans, delayed the foreclosure of many government backed mortgages, provided added unemployment compensation, and expanded current bankruptcy relief. Special temporary provisions have been made that allow forgiveness of taxes and or penalties on the liquidation of IRA, 401(k), and other retirement funds. CAUTION should be taken before cashing in your retirement plan, as other relief is available that allows you to eliminate debt, while preserving your nest-egg for your future. Do NOT liquidate a retirement plan without first speaking with us first!
Many have benefited from mortgage and auto loan forbearances or deferrals. These forbearance programs contain different requirements when no longer in forbearance. Our office has experience addressing these issues in bankruptcy, is familiar with the lenders, the U.S. Bankruptcy Court, and U.S. Trustee as it relates to forbearance loan repayment.
We understand the concerns of individuals and families facing struggles caused directly or indirectly by Covid-19. The most common questions we receive revolve around the ability to keep a home, keep or buy a car, keep or lose tax refunds and bonuses, and continue to save for retirement. Each situation is unique. No two cases are the same. Often, bankruptcy is not necessary, or is better held off until circumstances have changed. From the CARES Act, to the HAVEN Act, to state law changes and uncertain upcoming Acts, it is good to consult with a firm that is focused on debt relief law. At Keegan and Co., Attorneys, we understand recognizing and responding to constant change is the key to crafting an individualized approach to debt relief.