Cares Act & Bankruptcy: Means Testing & Stimulus Checks
In response to the growing COVID-19 outbreak, Congress passed the CARES Act to provide relief to Americans through of variety of means, including direct payments and small business loans. In addition to these more immediate forms of monetary support, the bankruptcy rules have been amended to accommodate debtors who have been affected by the pandemic.
Means Testing
Fortunately, stimulus checks are not subject to means testing when looking at qualifying for Chapter 7 or 13. This stimulus income joins social security and veteran’s disability as one of three exclusions from means-testing calculations and could allow people to still qualify for Chapter 7 bankruptcy even though they are close to passing the median income.
For more information contact your Yuba City bankruptcy attorney at (530) 797- 4402.
Categorized in: News