Filing for Bankruptcy During the COVID-19 Pandemic

Pandemic-Related Legal Issues

Filing for Bankruptcy During the COVID-19 PandemicIf you’re like many Americans, the pandemic has hit your pocketbook pretty hard. Though the CARES Act and second stimulus package have helped many stave off bankruptcy for now, it may yet become one of your best options. Here are some things to know about bankruptcy law as it relates to the coronavirus pandemic.

Chapter 13 Bankruptcy Reorganization Periods May Be Extended

Under Chapter 13 of the bankruptcy laws, you can receive the benefits of the automatic stay, which prohibits creditors from attempting to collect a debt in any way except through the bankruptcy proceeding. That means no calls, letters or legal action. A Chapter 13 reorganization lets you work out new payment arrangements with your creditors and make payments over a three-to-five-year period.

Under the CARES Act (the first stimulus package), a Chapter 13 debtor may ask the bankruptcy court to extend that repayment period to seven years. To get an extension, you’ll need to provide notice to your creditors and schedule a hearing, and you’ll have to show a material financial hardship due to the pandemic.

Stimulus Payments Will Not Count Toward Monthly Income

To qualify to permanently discharge debt under Chapter 7, you must submit to a means test and demonstrate to the bankruptcy court that you lack the means to repay your creditors under Chapter 13. The means test uses your monthly income to determine whether or not you qualify. Under the CARES Act, stimulus checks and other payments from the federal government or pursuant to federal laws do not count as monthly income.

Debtors Do Not Need to Meet with Creditors in Person

Before the pandemic, debtors filing under Chapter 7 or Chapter 13 were required to attend a Section 341 meeting of creditors. Those meetings may now be conducted by phone or videoconference.

Contact an Experienced Rockwall, Texas, Bankruptcy Attorney

At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. I am currently communicating with clients by phone, text message, and videoconference. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Rockwall County, Collin County, Dallas County, Hunt County, and the surrounding counties.

Speak Your Mind


Call Rockwall bankruptcy lawyer Carrie Weir at 972-772-3083 or fill out the contact from below for a free, confidential consultation to discuss your options.

How Can I Help

Complete the contact form
and I will email you.

  • This field is for validation purposes and should be left unchanged.

Consumer Bankruptcy

Can I keep my car? Will bankruptcy stop a foreclosure? Will I ever be debt-free again? How will I ever pay these medical bills?

Read More

Chapter 7 Bankruptcy

If you want to stop creditor harassment, eliminate repossession debt, stop garnishments and keep your house, and car, a Chapter 7 bankruptcy could help.

Read More

Chapter 13 Bankruptcy

Are you in jeopardy of losing your house? Are you making good money but everyone is asking for payment right now? Do you want or need to stop collections?

Read More