SOLUTIONS TO PROBLEMS CAUSED BY THE CORONAVIRUS (LEGALLY)


09 Apr

WE UNDERSTAND THAT THE CARES ACT PROVIDED A MECHANISM WHEREIN MOST AVERAGE WORKERS COULD APPLY FOR UNEMPLOYMENT COMPENSATION AND, IN MANY CASES, RECEIVE THE SAME WEEKLY PAY THAT THEY WERE MAKING AT WORK.  THIS IS A DEVIATION FROM THE OLD SYSTEM, WHEREIN WORKERS GENERALLY RECEIVED HALF OF WHAT THEY WERE PAID WHEN WORKING.  THE ULTIMATE QUESTION IS WHAT HAPPENS WHEN UNEMPLOYMENT RUNS OUT AND YOU CANNOT FIND A JOB.


BANKRUPTCY IS A TOOL TO HELP YOU GET BACK ON YOUR FEET AGAIN.  IN OUR EXPERIENCE, ONE OF THE MOST COMMON QUESTIONS IS WHETHER YOU CAN KEEP YOUR CAR AND HOME.  THE ANSWER IS A QUALIFIED YES.


IN A CHAPTER 13 BANKRUPTCY, YOU AGREE TO A PAYMENT PLAN THAT YOU CAN AFFORD.  AT THE END OF THE PLAN, YOU STILL HAVE EVERYTHING.  IN ESSENCE, YOU ARE PAYING FOR ALL OF YOUR DEBTS, INCLUDING YOUR HOME AND AUTOMOBILE, ON A SCHEDULED PLAN.


IN A CHAPTER 7 BANKRUPTCY, YOU WIPE OUT ALL OF YOUR DEBTS COMPLETELY.  IF YOU PUT YOUR AUTOMOBILE AND HOME ON THE SCHEDULE, THEN YOU LOSE IT.  HOWEVER, YOU CAN STILL DO A CHAPTER 7 AND KEEP YOUR HOME AND AUTOMOBILE OFF OF THE SCHEDULE.  THIS MEANS THAT ALL OF YOUR DEBTS ARE FORGIVEN EXCEPT YOUR HOME AND AUTOMOBILE.  YOU WILL KEEP PAYING THE SAME MORTGAGE AND CAR PAYMENT; HOWEVER, THE FREEDOM IS THAT YOUR OTHER DEBTS ARE FORGIVEN.

BUSINESSES CHAN USE CHAPTER 11 TO REORGANIZE THEIR DEBTS.


IF YOU HAVE ANY QUESTIONS, FEEL FREE TO CONTACT US FOR A DETAILED DISCUSSION.

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