Here are the latest legal developments that have grown out of the Coronavirus crisis:
ILLINOIS GOVERNOR HAS ISSUED AN ORDER SUSPENDING ALL MOTOR VEHICLE REPOSSESSIONS.
IF YOU FILE FOR BANKRUPTCY PROTECTION YOU MAY NOT BE REQUIRED TO TURN OVER ANY FEDERAL MONEY RECEIVED FROM THE STIMULUS PACKAGE TO COVER PAST DEBTS.
Other highlights of the stimulus package include:
1. The IRS Will Suspend Some Tax Enforcement Actions.
The Internal Revenue Service announced that it will immediately suspend certain tax payments and compliance programs and will not begin new audits or private debt collections until at least July 15, 2020.
2. U.S. Government to Make Direct Payments to Certain Individuals
Under the plan expected to be passed by Congress, single Americans will receive $1,200, married couples will get $2,400 and parents will receive $500 for each child under age 17.
However, the payments will be phased out for individuals with adjusted gross incomes of more than $75,000, and those making more than $99,000 will not qualify.
3. U.S. Government to Suspend Student loan payments.
The Department of Education will suspend payments on student loan borrowers without penalty through September 30, 2020.
4. The REAL ID deadline is to be delayed to September 2021.
5. Unemployment benefits will include payment from the federal government of an extra $600 a week for four months on top of state benefits. This includes independent contractors and the self-employed, who typically don’t qualify for such assistance, and to gig economy workers, who aren’t eligible in many states.
6. Lending Program.
The Treasury Department will loan money to businesses. This includes $25 billion for passenger air carriers, $4 billion for cargo air carriers and $17 billion for businesses that work in national security, with some restrictions. There are provisions for direct loans to mid-sized businesses, defined as between 500 and 10,000 employees, as well as non-profit organizations, where no payments will be due for the first six months after the loan is issued.
7. Protections against Foreclosures and Evictions
There will be protections against foreclosures on mortgages and evictions for renters.
Anyone facing a financial hardship from coronavirus shall be given a forbearance on a federally backed mortgage loan of up to 60 days, which can be extended for four periods of 30 days each. Servicers of federally backed mortgage loans may not begin the foreclosure process for 60 days from March 18, 2020.