Corona Virus (Ovid-19) Crisis and Bankruptcy – What you need to know

Corona Virus (Ovid-19) Crisis and Bankruptcy – What you need to know

To say that the Corona virus (CoVid-19) pandemic changed everything is an understatement. It is estimated that 1/3 of rental housing businesses and tenants did not pay their rent on time in March or April. This number is expected to increase as our businesses and employees continue to be stranded due to the risk of infection and serious illness from CoVid 19, and in some cases death. Fortunately, we did not have the carnage that Americans have in New York City in Ventura County. However, our neighboring county, Los Angeles County, does not have the excellent results that we enjoy in Ventura County.

With growing financial worries and changing questions from week to week, you may be wondering how it will affect you if you are going to declare bankruptcy or if you are already bankrupt. There are law firms that help. They closely follow all changes as they arise and are there to help you through the bankruptcy process during these incredibly difficult times. Discuss some of the changes you will face and answer some of your key questions.

Are bankruptcy courts still open?

Yes, but most hearings take place by phone, not in person. Everything you say is recorded and recorded in the official record as if you were personal. If you don’t make yourself available at the prescribed time, this can and most likely will be recorded as “no show” in the minutes, and it’s a big no-no in court.

Can I still file for bankruptcy while stopping Corona virus?

Yes, the courts continue to allow the filing of bankruptcy files and claims during the CoronaVirus crisis. The only real difference is bankruptcy, and the appearance of the court will be compliance with these new pandemic Corona virus protocols.

Will my 341 bankruptcy meeting be postponed?

All of the next 341 (a) creditors’ meetings (originally scheduled from March 25, 2020 to April 10, 2020) continued at a later date, most of which remain to be determined. This order will probably be repeated. For the moment, everything remains fluid.

In a Chapter 13 case, continued creditors meetings do not release debtors from their obligation to make scheduled payments to the trustee no later than 30 days after filing the claim. Debtors can make these payments electronically via TFS (dot) com.

Can I keep the economic aid payments I received in Covid-19 during the economic crisis?

The insolvency administrator will not target sales of economic relief payments related to the economic crisis of the Corona virus. Money that you can use for your most immediate financial needs.

Do I still have to make my mortgage payments while stopping the Corona virus?

Yes. You must continue to make payments as promised. In certain circumstances, a law firm may seek relief from the court.

If you have not yet submitted a filing, a law firm may receive some relief from your creditor under new laws passed by Congress. Of course, your bank holding your mortgage must be made aware of your financial problems or job loss before you miss a payment.

Will my bankruptcy relief due to the corona virus crisis be delayed?

Your last resort in bankruptcy may be postponed if your 341 session is postponed or continued until further notice. Stay up to date with updates from your court or trustee. Updated information may also be sent to you by email even after your meeting has taken place. It is important that you meet all the requirements that have been communicated to you. There is no excuse for missing court hearings or hearings.

Will my automatic bankruptcy be affected by these changes due to Covid-19?

Not if your bankruptcy proceedings have not been rejected. Otherwise, the automatic suspension remains in force if certain exceptions are not met, for example B. if your creditor requests an exemption from your stay. Debtors who file multiple bankruptcy cases in a short period of time may also be denied an automatic stay and you cannot use the Corona virus as an excuse.

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