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    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
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    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
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    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
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    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
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    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

Child Tax Credit

The COVID-19 pandemic has brought unprecedented financial hardships for many families. In response, the government has provided various forms of financial assistance, including Child Tax Credit payments and COVID relief funds. While these funds have provided much-needed relief, many individuals are now wondering how these payments will be treated in bankruptcy.

The Child Tax Credit is a tax benefit that provides families with a credit for each qualifying child. Beginning in July 2021, the Child Tax Credit payments were expanded and made available to families on a monthly basis. These payments are intended to provide financial assistance to families with children who may be struggling due to the pandemic.

In bankruptcy, Child Tax Credit payments are generally considered exempt income. This means that these payments are not included in the calculation of your monthly disposable income, which is used to determine your eligibility for Chapter 7 or Chapter 13 bankruptcy.

However, there are some limitations to this exemption. For example, if you have a high income and the Child Tax Credit payments significantly increase your income, the bankruptcy court may view these payments differently. Additionally, if you receive the payments but do not use them for necessary expenses, such as rent or utilities, the bankruptcy court may consider these funds as part of your disposable income.

The federal government has provided various forms of COVID relief funds, including stimulus payments, unemployment benefits, and small business loans. These funds were intended to provide financial assistance to individuals and businesses who were struggling due to the pandemic.

In bankruptcy, COVID relief funds are generally treated as exempt income. However, as with Child Tax Credit payments, there may be some limitations to this exemption. For example, if you receive a large sum of money from a COVID relief fund and do not use it for necessary expenses, the bankruptcy court may view these funds as part of your disposable income.

It is also worth noting that some COVID relief funds, such as small business loans, may be considered assets rather than income. If you have received a small business loan and used the funds to purchase assets, such as equipment or inventory, these assets may be subject to seizure by the bankruptcy trustee.

In general, Child Tax Credit payments and COVID relief funds are considered exempt income in bankruptcy. However, there may be limitations to this exemption depending on your individual circumstances. If you are considering filing for bankruptcy and have received these types of funds, it is important to speak with an experienced bankruptcy attorney to understand how these payments will be treated in your case.

If you have any questions, feel free to reach out to your Auburn bankruptcy attorney at 530-797-4402

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