Quincy Illinois Office (217) 222-2432
Hannibal Missouri Office (573) 221-2150
Blog Layout
What the HEROES Act Could Mean for Bankruptcy
May 20, 2020
The following is an update from the National Association of Consumer Bankruptcy Attorneys:
As a majority continue to follow stay at home orders due to the COVID-19 crisis, NACBA’s Legislative Committee with support from NACBA’s Board of Directors have been working nonstop with House and Senate staff to ensure significant bankruptcy provisions were included in H.R. 6800, Health and Economic Recovery Omnibus Emergency Solutions Act , also known as the “HEROES Act”. We are pleased to announce NACBA’s success in having many of our provisions included that will facilitate the availability of bankruptcy for victims of COVID-19 and its foreseeable economic consequences.
NACBA’s Legislative Committee and Board of Directors proudly share our association’s bankruptcy provisions included in H.R. 6800. ( Click here to read the bill text , bankruptcy protections begin on page 993).
- Protecting Homes and COVID Benefits. The House bill included a $100,000 homestead exemption floor, applicable to all cases where the homestead exemption would otherwise be lower, and a provision excluding COVID benefits from property of the bankruptcy estate. Many debtors will be filing bankruptcy cases solely because of the pandemic and its effects. They should not lose their homes just because these circumstances caused financial disaster. And debtors should also be protected from trustees seizing COVID benefits that are often essential to continued subsistence.
- Protection from Discrimination Against Bankruptcy Debtors. In the initial days of attempting to obtain benefits afforded by the CARES Act, bankruptcy debtors were being told that they cannot receive the benefits such as mortgage relief and small business loans because they are in bankruptcy. Bankruptcy Code section 525 is amended to make clear that no entity can discriminate against past or current bankruptcy debtors in providing COVID-related mortgage assistance.
- Ensuring Chapter 13 is Available to Families that Need It. The debt limits in Chapter 13 have not kept up with increasing home mortgage and student loan debt. Chapter 13 can also provide a method of reorganization from many small businesses that is much less expensive than chapter 11. The chapter 13 debt limits are doubled by the bill, which would allow more families and small businesses to file chapter 13 cases to resolve the hardships caused by this crisis.
- Ensuring a Fresh Start for Chapter 13 Debtors Who Become Unable to Make Plan Payments. Debtors currently in chapter 13 will lose jobs and income or have large medical expenses, making continued payments impossible. They now have the option to obtain a chapter 13 discharge without completing payments if they have been in chapter 13 for at least one year.
- Allowing an Extended Period for Chapter 13 Debtors to Catch Up on Missed Mortgage Payments. Debtors currently must complete their chapter 13 plans within a five-year period. They are now allowed to extend their chapter 13 plans for up to an additional 2 years, not to exceed 7 years, solely to allow them to catch up on missed mortgage payments or on mortgage payments which had been subject to forbearances.
While not all offered provisions were incorporated into the current bill, NACBA is strongly continuing our efforts towards getting them into the final House and Senate compromise bill. One provision NACBA continues to push for is:
- Giving Chapter 13 Debtors Options to Deal with Mortgage Payments When There Has Been Forbearance on Those Payments . This provision permits mortgage servicers to file a supplemental claim when there has been forbearance on mortgage payments during a chapter 13 plan. The debtor can request that the court modify the plan or order that the mortgage payments be deferred until then end of the mortgage period. The court can also order mediation to allow the debtor and mortgage servicer to work out a mutually satisfactory arrangement to deal with the payments.
The post What the HEROES Act Could Mean for Bankruptcy appeared first on Dempsey, Dempsey & Hilts P.C..
Justice Finally Prevails,
After a Trip through The Looking Glass!
In November of 2014 we filed a disability application for a 45-year-old disabled male veteran with 100% rating from the Veterans Administration. We told him he would not be automatically approved because he was receiving Veterans disability.
It is rather common for a client to come in with a letter from their health care provider. Frequently these people have filed their own applications for Social Security benefits and submitted this letter with their application. They are bewildered and crestfallen when they are turned down by the Social Security Administration. If they haven’t […]
The post Doctor’s Letters appeared first on Dempsey, Dempsey & Hilts P.C..
The dismal performance of the Social Security Administration in processing and paying Social Security Disability and SSI claims continues to generate interest in the national media. Lisa Rein, a reporter for the Washington Post, has done a great series of articles about the SSA and has shed light on a system in chaos. She writes […]
The post Social Security Disability Expose in the Washington Post
appeared first on Dempsey, Dempsey & Hilts P.C..
We Got an Award! Dempsey, Dempsey and Hilts received an award from the group, Social Security Disability Leadership. We were recognized as one of the top 500 firms in the nation. In fact, according to the Social Security Administration, we are 305th in the nation for 2022 in number of Social Security Disability and SSI […]
The post Disability Newsletter – Winter 2023 appeared first on Dempsey, Dempsey & Hilts P.C..
Social Security Hearings – Still on the Phone! We are continuing to have Social Security Disability and SSI hearings on the speakerphone. Terrell and Vicki Dempsey attended the National Organization of Social Security Claimant Representatives conference in Austin, Texas in May. Dr. Kilolo Kijakazi, the Acting Commissioner of the Social Security Administration, told the conference […]
The post Disability Newsletter – Summer 2022 appeared first on Dempsey, Dempsey & Hilts P.C..
Good News on the Appellate Front – A significant change has occurred with a new administration. We are seeing a significant number of the U.S. Attorneys agreeing to remand cases we appeal to the U.S. Federal District Court!
The post Disability Newsletter – Winter 2022 appeared first on Dempsey, Dempsey & Hilts P.C..
The Social Security Administration is continuing to conduct our Social Security Disability and SSI hearings by phone. The administration has been offering to have online hearings through Microsoft Teams, however, the vast majority of our clients do not have sufficient access to computers or high-speed internet to use this option…
The post Disability Newsletter – Summer 2021 appeared first on Dempsey, Dempsey & Hilts P.C..
We are proud to announce that Courtney Hilts, Esquire is now a partner as you can see from the name at the top of this letter. Mrs. Hilts, formally Shelley, grew up in rural Colchester, Illinois. She is a 2007 graduate of West Prairie High School. She graduated from the University of Illinois, Springfield in May […]
The post Disability Newsletter – Winter 2021 appeared first on Dempsey, Dempsey & Hilts P.C..
Covid! Covid! Covid! Just like everyone else in the United States, the Social Security Administration and our office is struggling to cope with the Covid-19 pandemic. The Social Security Administration sent everyone home. We kept our offices open with facemask/social distancing requirements. Thankfully, none of us have been infected by the virus. Like most of our friends […]
The post Disability Newsletter – Summer 2020 appeared first on Dempsey, Dempsey & Hilts P.C..
Written by Nancy Altman: The CARES Act was intended to provide emergency payments as quickly as possible. Yet over a month after the bill became law, those emergency payments are not yet all out the door. Even for those who’ve received them, $1200 emergency payments for eligible adults and $500 emergency payments for each eligible dependent child […]
The post Let’s Make Sure The COVID-19 Response Doesn’t Threaten Social Security appeared first on Dempsey, Dempsey & Hilts P.C..