If you are an existing chapter 13 debtor, and you have lost your job or are unable to make your chapter 13 trustee payment or other required payments, there is still hope. There are a variety of programs in place that will protect chapter 13 debtors for the foreseeable future.
Most mortgage companies are granting mortgage payment forbearances upon just a request affirming a financial hardship as a result of the COVID-19 pandemic. The initial forbearance is typically 3 months, and additional relief will likely be obtainable. Additionally, you can modify your Chapter 13 plan if the forbearance requires a balloon payment at the end of the forbearance period.
If you have been laid off or had a reduction in hours, the Federal Government, through July, provides $600 per week in additional compensation if you receive $1 or more in unemployment. The Texas Workforce Commission has a work share program where an employee can receive a % of their unemployment payment amount while still working.
Unemployment is now available to self-employed individuals.
If you have any questions regarding any matters related to your chapter 13 bankruptcy, contact us to see if we can assist.
Need assistance in managing the bankruptcy process? Freeman Law attorneys offer unique cross-disciplinary expertise in taxation, litigation, and forensic accounting and asset tracing, positioning the Firm to handle complex bankruptcy litigation on behalf of debtors, creditors, and trustees, as well as bankruptcy taxation matters. Our Firm offers value-driven services and provides practical solutions to navigate complex bankruptcy laws. Contact Freeman Law to schedule a consultation or call (214) 984-3000 to discuss your tax or bankruptcy concerns.