The new Federal “Cares Act” will allow Chapter 13 debtors to modify their existing Plans to 84 months instead of 60 months.
Existing Debtors must prove a “material financial hardship” as a result of the COVID-19 pandemic.
Extending the Plan payments will help debtors who will need to make up non-payment to the Chapter 13 Trustee, mortgage/rent or car payments missed during this crisis of unemployment.
However, these extensions will only apply to cases that have already confirmed their Chapter 13 Plans. In other words, new filings will not benefit from the extended time periods.
The National Association of Consumer Bankruptcy Attorneys (NACBA), of which I am a member, is actively encouraging Congress to correct the CARES Act to extend the time periods for debtors who have not yet confirmed their Chapter 13 cases.
Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.
