$600 Pandemic Relief Payments Protected

Wasson and Thornhillpandemic

pandemic caused closure

Photo by Edwin Hooper on Unsplash. The $600 pandemic relief payments now being distributed are protected from the reach of bankruptcy trustees, with some timing considerations. The federal Consolidated Appropriations Act (CCA) became law on December 27, 2020. It is reportedly the longest single bill that Congress has passed. Within its 5,593 pages are about 15 pages of temporary changes … Read More

States’ Responses to $400/$300 Extended Unemployment Benefits

Wasson and ThornhillUnemployment Benefits

manacing cloud with hopeful rainbow

Photo by NOAA on Unsplash. Different states have responded differently to the proposed $400/$300 federal extended unemployment benefits. How about Kentucky and Indiana? Last week we explained the President’s Memorandum of August 8 which extended reduced federal unemployment benefits. The $600 weekly benefit had expired on July 31. The House of Representatives had previously passed a bill extending the $600 … Read More

Trump’s $400 Unemployment Benefits

Wasson and Thornhillpandemic, unemployment benefits

foreboding waters

Photo by Steve Halama on Unsplash. On August 8 Trump signed a Memorandum extending federal unemployment benefits, at $400 per week. Is this really happening? A Quick History of the Federal Unemployment Benefits The CARES Act’s $600 per week additional federal unemployment benefits expired on July 31, 2020. Section 2104 of the CARES Act.  Back in May the U.S. House … Read More

Bankruptcy Filings Poised to Increase

Wasson and ThornhillFinancial Crisis

bankruptcy petition

Photo by Melinda Gimpel on Unsplash Consumer bankruptcy filings edged up in 2019, increased more this March, sharply declined in April, but are very likely to shoot up now. In the last two weeks three major retailers filed Chapter 11 business bankruptcy: J. Crew, Neiman Marcus, and J.C. Penny. Total business Chapter 11 reorganizations were up 26% in April 2020 … Read More

New 7-Year Amended Chapter 13 Plans

Wasson and ThornhillChanges in Bankruptcy Law, Chapter 13

budgeting

Photo by Kelly Sikkema on Unsplash The new coronavirus law temporarily allows amend Chapter 13 plans to extend to a 7-year period instead of the current 5-year maximum.      Last month we described the changes to bankruptcy law made by the coronavirus CARES Act enacted on March 27, 2020. One of those changes is the ability to extend the length … Read More

Student Loan Payments Suspended

Wasson and ThornhillStudent Loans

The new COVID-19 law temporarily suspends most, but not all, federal student loan monthly payments, accruing interest, and debt collections.      The 880-page Coronavirus Aid, Relief, and Economic Security Act (“CARES”) has 4 pages of help for certain student loan borrowers. Section 3513 of CARES. It provides meaningful albeit temporary help, for those who qualify by having the right kind … Read More

Coronavirus Law Changes to Consumer Bankruptcy

Wasson and ThornhillChanges in Bankruptcy Law

New $2.2 trillion coronavirus relief law makes modest but potentially important temporary changes to both Chapter 7 and Chapter 13 law.   If you’re thinking about filing a Chapter 7 “straight bankruptcy” case, the new CARES law may help, at least slightly. If instead you’re thinking about a Chapter 13 “adjustment of debts” case, the new law helps in more … Read More

U.S. Treasury Sending $1,200 Relief Payments

Wasson and ThornhillFinancial Crisis

The U.S. Treasury is sending money to most adults “as rapidly as possible,” $1,200 if you make less than $75,000, plus $500 per dependent.   On Friday (March 27) Congress passed and the President signed into law the Coronavirus Aid, Relief, and Economic Security Act. It’s also called the CARES Act, better known as the massive $2.2 trillion pandemic relief … Read More