Will COVID-19 Crisis Stimulus Check Affect My Bankruptcy Case? - The Law Offices of Bryan Yaldou, PLLC | Unpaid Wages - Bankruptcy - Personal Injury

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"Will the COVID-19 crisis stimulus affect my bankruptcy?"
Find answers to that question and how filing bankruptcy is now easier than ever.

Counselor Journal

With a quarter of the state’s workforce out of work due to the COVID-19 crisis, more individuals may be considering filing for bankruptcy or already have. However, some workers are concerned that if they accept the stimulus check from the government, their overall income will exceed the bankruptcy threshold and disqualify them for bankruptcy.

Here’s the answer: It will not and cannot.

In fact, there is fine print in the stimulus bill that states that if you receive this stimulus, it will NOT be used against you when filing.

Bankruptcy and COVID-19

If you are struggling, please know that you are not alone.

Many organizations, businesses, and individuals may be headed for bankruptcy. In fact, the Xtreme Football League (XFL) filed for Chapter 11 Bankruptcy on April 13, and this is likely just the beginning.

Although there is a limit regarding how much income an individual can make in order to file for bankruptcy, the stimulus check will not count against it. This fact is noted in the Coronavirus Aid, Relief, and Economic Security Act.

“We’re expected to get a massive influx of bankruptcy filings in the next month or two,” said Attorney Bryan Yaldou, who specializes in personal bankruptcies among other areas of expertise. “This stimulus payment that is going to be sent out during this pandemic is not going to be counted as income for the purposes of qualifying for bankruptcy.

“The CARES Act that was recently passed makes it clear that this was not to be counted as income.”

Congress did not want individuals to have to decide between filing for bankruptcy and accepting the stimulus check in order to pay their bills. Because this economic crisis places many people in a tough situation, the stimulus checks are intended to help families stay afloat. Some individuals or families may use these checks to pay bills, and in some cases that’s helpful and wise.

However, the bills will only return the following month, leaving families in the same scenario they are in now.

Instead, individuals who are finding themselves in a dire financial situation may wish to use this resource to begin a bankruptcy filing, which may mean greater benefits in the long run. Some forms of bankruptcy allow individuals to wipe out all of their debt once and for all, and then they can start to rebuild their credit quickly.

Individuals who would like to know more about bankruptcy options may contact the Yaldou Law Firm to see which route is right for them.

“I won’t do it unless it’s better than what they’re doing right now,” Bryan said.

If you are considering filing for bankruptcy but are unsure if you should or if you qualify, call or message us to schedule a free consultation.

We’re Going Digital: File for Bankruptcy Remotely

 

According to the CARES Act, a stimulus check will be treated as a refundable tax credit, and this applies to cases filed before or after enactment of the law. To make filing for bankruptcy easier, the Yaldou Law Firm website features an option that allows residents to file online after a consultation with one of our attorneys. In this image, a concerned man is sitting in a coffee shop in front of a laptop.

According to the CARES Act, a stimulus check will be treated as a refundable tax credit, and this applies to cases filed before or after enactment of the law. To make filing for bankruptcy easier, the Yaldou Law Firm website features an option that allows residents to file online after a consultation with one of our attorneys.

 

To help residents struggling through this difficult time, our law firm is going virtual. Individuals may file for bankruptcy completely online on our website, www.yaldoulaw.com, after a consultation with one of our attorneys.

“Clients may submit information and documents on our website. We can complete bankruptcy cases completely by phone and online. This virtual process is quick, safe, and easy,” Bryan said. “We want our clients to know that we are still here for them and ready to help.”

Individuals who are considering filing must first discuss their situation one-on-one with one of our bankruptcy attorneys. If you decide that bankruptcy is the right option for you, we will provide you with a customized URL that will allow you to file safely and easily through our website. You can provide us with applicable documents online as well, and if you need assistance with the technology, we will be happy to help you.

“Bankruptcy might not be the ideal solution for everyone,” Bryan said. “Some individuals, however, are struggling to make ends meet and finding themselves overwhelmed by unmanageable debt and the stress that comes with it.  Bankruptcy could help them get back on their feet and gain some peace of mind after this crisis is over.”

Bankruptcy Steps and What You Will Need to File Remotely

Bankruptcy cases differ based on debts, family status, income, and many other factors. Typically, however, these cases include the following steps.

1. Consultation with a Bankruptcy Attorney

During a free consultation, we will discuss your income, debts, obligations, assets, current living arrangements, and several other factors in order to provide you with an informed opinion regarding whether filing for bankruptcy is advisable. Consultations are available through a video conference or video call.

After scheduling the consultation, we will provide you with an intake form to fill out prior to the meeting. You may complete this form right from your phone or computer, or you may call us for assistance in filling it out.

2. Securing Our Services and Compiling Documents

Once you make the decision to file for bankruptcy through our law firm, a retainer agreement will be executed. It will outline our terms and services, and it can be sent and signed electronically. Payments also may be made over the phone or online.

At this point, we will also provide you with a list of documents you will need to compile in order to proceed with your case. These materials may not all be needed when you file, but you most likely will need them at some point during the course of the case.

Depending on the type of bankruptcy and various other matters, these documents may include but are not limited to:

  • Six months of paycheck stubs
  • Six months of bank statements
  • Tax returns for the last two years
  • Statements pertaining to:
    • Investments
    • Retirement
    • Home mortgages
    • Car loans
    • Credit cards or other debts
  • A list of items you own, such as jewelry, kitchen appliances, and gardening supplies
  • A current credit report
  • Your identification cards
  • Proof that you attended a credit counseling course, which is typically required in bankruptcy cases

You may send us these documents by email or fax, or you may take a picture of them and text them to us.

 

Rebuilding your credit after a bankruptcy will take some work, and financial advisors or our attorneys can provide you with tips on how to do so. Nevertheless, with some effort, you can see your credit rating slowly improve soon after your debts are discharged. In this image, a man reviews his credit score on a tablet. The credit score show on the tablet is 680.

Rebuilding your credit after a bankruptcy will take some work, and financial advisors or our attorneys can provide you with tips on how to do so. Nevertheless, with some effort, you can see your credit rating slowly improve soon after your debts are discharged.

 

3. Filing Your Case

Your filing appointment can now occur by phone.

First, we will set up a time to review your bankruptcy petition and schedules. We will then send a copy of your completed petition for your review, get your permission to affix your signature, and then electronically file your case through the court.

4. Going to Court Virtually

The meeting you will attend is known as the 341 Meeting of Creditors, but you do not have to physically appear in court during this pandemic.

Your meeting will instead be held over the phone. You will receive a phone number and access code to use on the day of your scheduled meeting. In addition to yourself, those present at the meeting will include your attorney and your assigned trustee.

5. Discharge of the Case

Bankruptcy cases are “discharged” 60 days after the court meeting. This means you are no longer liable to pay the applicable debts as approved.

Although bankruptcies stay on your credit report for 7 to 10 years, that does not mean your credit rating will be low for the entire duration. In fact, you can begin rebuilding your credit almost instantly after the discharge even though the bankruptcy is still on your report. Many people find themselves with a respectable credit score within a few years if they work to improve it.

 

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Carole Ann F.

I was a weepy mess when I first met with Mr. Yaldou, feeling quite overwhelmed, helpless and embarrassed at the thought of having to file for bankruptcy.

"Mr. Yaldou was comforting and reassuring, taking me under his wing much like a "big brother". He, Nick Chambers, Lisa Segur, and his entire legal staff, were never too busy to answer my questions and respond to my emails throughout the entire (successful) bankruptcy process. Everyone was absolutely wonderful!!! If you're looking for a knowledgeable, top-notch legal team, then I highly recommend Yaldou Law."

Rebecca D.

"Did great job on my case was very helpful and knowledgeable he knew what he was doing call back at two maybe three times and still very helpful after the case was finished."

Mark W.

Bryan is an excellent attorney!

"He has an extremely, professional, knowledgable manner and yet is kind and understanding. He puts you immediately at ease and you feel free to talk to him about all the deepest and most embarrassing things without feeling like he is judging you, in fact that he understands and empathizes with you. He is very through and explains every step of the process and what to expect - both good and possible bad which I really liked because I don't like a rosy picture painted for me when a potentially bad situation might arise. I would highly recommend him...in fact - do yourself a favor and just go straight to him and forget shopping around as you won't find a better champion than Bryan! By the way, I had never met Bryan, just saw his sign and decided to stop - the best decision I ever made!"

Julia D.

Bryan is so friendly and always available to answer any questions you may have.

"My case was handled efficiently and with ease. I appreciated always being informed and knowing what the next step would be. Overall, I’d absolutely recommend him to anyone in search of a quality attorney."

Nicole Marie A.

I recently had some legal work with Bryan and could not have been more pleased.

"Bryan is an excellent attorney. He has an extremely, professional, knowledgeable manner and yet is kind and understanding. He puts you immediately at ease and you feel free to talk to him about all the deepest and most embarrassing things without feeling like he is judging you, in fact that he understands and empathizes with you. He is very through and explains every step of the process and what to expect - both good and possible bad which I really liked because I don't like a rosy picture painted for me when a potentially bad situation might arise. I would highly recommend him...in fact - do yourself a favor and just go straight to him and forget shopping around as you won't find a better champion than Bryan! By the way, I had never met Bryan, just saw his sign and decided to stop - the best decision I ever made!"

Julia F.

"Bryan is very down to earth and very personable. I would not hesitate to enlist Bryan's help in the future should I need him."

Karen B.

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"Bryan helped me with my bankruptcy. He was very nice, very helpful, and extremely professional. I was nervous about filing bankruptcy, as most people would be, but everything he said was true. It's been 4 years since I've filed and I have my own car and I own my own house now. My credit is better now than it was before the bankruptcy. I highly recommend this law office, not only are they great people to work with, they're very affordable too...you won't be disappointed!!!!!!"
Melissa M.

Very prompt and immediate answers! Very professional! Very friendly!

"My husband and I had went to this office after we had visited another office. Bryan is hands down the most helpful Lawyer we had worked with. Bryan will not only answers every question you have he makes sure you fully understand and by the time you leave you have no other questions and everything was answered with full detail. I have had to contact Bryan with other questions after our case and he was always quick at getting me whatever it was we needed. We will go to Bryan with every legal question we may have in the future!"
Michelle K.

The highest quality service that I have ever had.

"Bryan is always available when needed. If I needed to go to the office to speak to him or make a payment on short notice he's willing to take time to see you. Very good at explaining what will happen with your case. I would definitely recommend Bryan to anyone that asked me for an attorney."
Katherine Y.

"Bryan was excellent during my ordeal. He went out of his way to work around my long work hours. I would definitely recommend him."

Jen

Bryan handled my bankruptcy case and did a wonderful job.

"It turned out to be much more complicated than anticipated, however, he quickly managed all of the issues and was able to resolve my case as promised. Bryan kept me informed every step of the process and worked our meetings around my schedule."
Diana

Excellent, highly professional lawyer who truly care for his clients.

"Bryan is an excellent attorney. He has an extremely, professional, knowledgable manner and yet is kind and understanding. He puts you immediately at ease and you feel free to talk to him about all the deepest and most embarrassing things without feeling like he is judging you, in fact that he understands and empathizes with you. He is very through and explains every step of the process and what to expect - both good and possible bad which I really liked because I don't like a rosy picture painted for me when a potentially bad situation might arise. I would highly recommend him...in fact - do yourself a favor and just go straight to him and forget shopping around as you won't find a better champion than Bryan!"
Julia

"Attorney for life. He saved my home, organized all my debts into a manageable payment, eliminated a huge IRS debt, and it was all reasonably priced. He also cares, and that's hard to find. Thank you Bryan."

John B.

I highly recommend Bryan Yaldou and associates to help with your bankruptcy.

"I was out of work and on disability at the time that I filed for my bankruptcy...I filed it myself. I had garnishments that were taking 25% of my weekly paychecks. I couldn't afford to pay my bills, the garnishments, or hire an attorney. The trustee was wanting to garnish my paychecks to pay a large sum of money to a couple of the creditors. The whole reason for filing in the first place, was to stop the garnishments. When you live paycheck to paycheck, you can't afford anything more. Bryan and his associates saved me from losing everything. They lifted a huge weight off of my shoulders...I feel like I can finally breathe again. I'm so thankful and grateful for everything they have done on my behalf."
Michelle W.

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