Cares Act and Covid-19 Modified Definition of "Disposable Income"
May 15, 2020
For those claims filed under Chapter 7 and Chapter 13 the CARES ACT has revised the definition of current monthly income to exclude payments made under Federal law relating to the national emergency declared by the President under the National Emergencies Act with respect to the coronavirus disease 2019 (COVID–19). The Act provides that federal payments made pursuant to COVID-19 do not qualify as “disposable income” required for the Chapter 13 debtor's plan. This will benefit not only current filers but those future filers.
This blog is intended for information purposes only and does not establish legal representation or financial guidance.