COVID-19 and Bankruptcy Update – Stimulus, Chapter 13 Filers Reduction of Income
Bankruptcy Attorney Robert M. Geller discussed bankruptcy issues as they related to the COVID-19 crises. Topics include: COVID-19 Stimulus Money, Ch 13 Bankruptcy Filers Reduction of Income
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COVID-19 and Bankruptcy Stimulus, Chapter 13 Information Video Transcript:
Good evening. This is attorney Robert Geller. It’s a Monday, April 6, 2020 and I wanted to prepare just a short update video for my clients about some particular things of concern and some questions I’ve been getting over the last month or so about the pandemic that we’re all unfortunately experiencing.
So the first thing that I wanted to talk to you about is the stimulus money and the checks or the money that you may be getting. The good news is I don’t think you’ll lose your stimulus money if you’re filing a chapter 7 or chapter 13 bankruptcy. Of course, if you have not filed yet, go ahead. Get your money, use it for your living expenses and everything that it was designed for and intended for.
If you already filed a chapter 7 recently and expect to receive the money, every indication I’ve received from chapter seven trustees is that you’ll be able to keep the money. They’re not going to ask you for it. I don’t really think that they want to be the subject of a press conference about a bankruptcy trustee taking money that Congress intended to help people out of this very difficult time.
As far as chapter 13 clients who expect to receive the money, I don’t anticipate that the trustee will be asking you for it either. This is not 100% guaranteed. It is in the code that potentially it could be property of the bankruptcy estate. Congress did not exclude this money specifically, but I really don’t think you’re going to have a problem. I have received that information from some of the trustees.
One other thing that I would like to address is some of my clients have suffered a loss of income due to either a reduction in their hours or they’ve been laid off during this difficult time. If you’re in a chapter 13 bankruptcy, currently, and you are having to make planned payments, I have received some calls or questions from clients about what they should do about making their plan payments.
Unfortunately in our jurisdiction, the middle district of Florida Tampa division, the court has not come up with any specific plan as to how we can deal with the reduction in the planned payments. However, that doesn’t mean that there isn’t anything I can do for you. What it really means is that the court’s going to consider each thing on an individual basis. So what you need to do is reach out to me and we will set up a phone conference and I will discuss your case individually with you and help determine what we can possibly do for you.
The best way to reach us is to go through our practice Panther portal. If you’ve used that in the past, send the message through that. Second best way would be to send an email to clientservice@RobertGellerlaw.com. And the third best way would be to give us a call at (813) 405-1507. I’ll send a return secure message through the portal, setting up a time to talk to you where I can go through your entire case and give you some information and help you evaluate the options.
I hope this video is finding you all healthy. I’m fortunate enough to say that my staff is all healthy and keeping very busy. You all have a great rest of your day and and a great week. Thank you.