As the future of potential stimulus bills is still undecided, households across the United States are keeping a close eye on their finances. For some, a stimulus check may mean the difference between making a rent payment or being evicted. Not only do proposed stimulus bills offer a second check, they also extend several aspects that protect debtors from backlash if they are unable to meet monthly payments. If you are one of those debtors who faces unstable finances for any reason, this may be the ideal time to take action for long-term debt relief. Filing for bankruptcy may be the best option for your circumstances. With the help of Behm Law Group Ltd., you can determine if filing for bankruptcy in Luverne, MN, and the surrounding area is right for you.
When the CARES (Coronavirus Aid, Relief, and Economic Security) Act was established in March 2020, $2.2 trillion was used for various support systems for individuals and businesses across the United States. Anyone who filed for bankruptcy after the CARES Act passed knows that the stimulus checks and other aspects of the bill were protected assets in their bankruptcy cases. They could not be seized by the trustees administering their bankruptcy cases. If you are worried about losing that vital stimulus support after the next bill passes, fear not. Any income from COVID-19 stimulus will be exempt from liquidation in Chapter 7 bankruptcy or a repayment plan in Chapter 13 bankruptcy. Additionally, the boost in income from the stimulus won’t prevent you from qualifying for bankruptcy.
While we wait for the next stimulus bill to pass, we can compare the CARES Act to what might be coming. Nearly all of us experienced the benefits of the CARES Act, so if we look at the differences between the proposed HEROES (Health and Economic Recovery Omnibus Emergency
Solutions) and HEALS (Help End Abusive Living Situations) Acts, we can predict how each might affect us.
Total cost of each packages
- CARES: $2.2 trillion
- HEROES: $3 trillion
- HEALS: $1 trillion
Stimulus check amounts
- CARES: $1,200 for each individual earning under $75,000, $2,400 for joint earners making under $125,000 with a reduction of $5 from every $100 for earners making more than income maximums
- HEROES: same as CARES
- HEALS: same as CARES
Stimulus check additions for dependents
- CARES: $500 per dependent 16 and younger, which eliminated college students from receiving either a stimulus check or dependent additions
- HEROES: maximum of three additions of $1,200 per dependent
- HEALS: $500 per dependent with no age limit
Unemployment benefit additions
- CARES: additional $600 per unemployment check, plus the usual state benefits
- HEROES: same as CARES
- HEALS: starting additional $200 per unemployment check, which will increase to an additional $500 per unemployment check to match 70% of lost wages subtracted against the state unemployment check
Many parts of the CARES Act expired at the end of July, but eviction moratoriums and other protections are still in place for those unable to meet rent and debt payments. Because of these protections, it is still viable to file for bankruptcy during this time. To get started on your bankruptcy in Luverne, MN, today, contact Behm Law Group Ltd. at (507) 387-7200 or stephen@mankatobankruptcy.com.
