CARES ACT

CHANGES TO CHAPTER 13 BANKRUPTCY

It appears that any Chapter 13 Bankruptcy Plan which is currently being paid can be modified to extend the repayment period up to seven (7) years from the date of the first payment IF the debtor has experienced a material financial hardship due, directly or indirectly, to the Coronavirus disease 2019 (COVID19) pandemic. Creditors and the Chapter 13 Trustee would have an opportunity to object to the modification.

This change will expire within one year of enactment of the law in March 2020.