Updated: 2020-08-25 by
The federal government has modified bankruptcy law one major way that Significantly affects the bankruptcy means test.
Specifically, they have modified the definition of current monthly income to exclude any payments under the CARES act.
This means that line 10 of the means test Form #1, Current Monthly Income, is modified to expressly state that CARES Act payments are not included in the definition of current monthly income. This change last for one year from the date the CARES act was passed.
Official Forms 122A-1, 122B, and 122C-1
2020-04 COMMITTEE NOTE Official Forms 122A-1, 122B, and 122C-1 are amended in response to the enactment of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), Pub. L. No. 116-136, 134 Stat. 281. That law modifies the definition of “current monthly income” in §101(10A) and the definition of “disposable income” in §1325(b)(2) to exclude “payments made under the Federal law relating to the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the coronavirus disease 2019 (COVID-19).” Each form is modified to expressly exclude these amounts from line 10. These amendments will terminate one year after the date of enactment of the CARES Act.
- source U.S. Courts.gov
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Steps for filing bankruptcy in Rhode Island, from learning whether you qualify, to completing and filing bankruptcy forms, to discharging your debts and getting on with your life.
The CARES Act made an important change to the means test form to indicate that payments under the CARES act are NOT included in determining median income. This could be a great boon to those thinking of filing.