Some changes to bankruptcy laws in the stimulus law that are going to expire March 27, 2021

The Coronavirus Aid, Relief, and Economic Security (CARES) Act makes changes to the bankruptcy code:

• The direct checks, dubbed “recovery rebates,” do not count as income that would get factored into a “means test” that determines is someone can file a Chapter 7 bankruptcy case;

• The recovery rebates also do not count as “disposable income” that could be applied to things like credit card debts in Chapter 13 cases;

• People who are already in Chapter 13 repayment plans and now experiencing financial hardship because of the outbreak have a one-year window to change repayment terms. They can extend their repayment time-frame up to two years longer.

• The bankruptcy-related provisions expire on March 27, 2021 one year after Trump signed the bill into law.