We are happy to report that on Saturday, March 27, 2021, President Biden SIGNED H.R. 1651 into law. H.R. 1651 extends for one year all the bankruptcy-related provisions that were included in the CARES Act passed on March 27, 2020.
These provisions will now expire on March 27, 2022.
What is the CARES Act Extension?
The bill extension offers relief for debtors who are currently in a Chapter 13 plan:
- The ability of a chapter 13 debtor to modify and extend a chapter 13 plan to a term of up to 7 years if needed, due to COVID-19-connected economic hardship.
- All debtors with chapter 13 plans that were confirmed by March 27, 2021, are eligible for this relief.
In simple terms, many debtors in chapter 13 are struggling under the weight of making their plan payments and having to survive the toll imposed upon them by the pandemic. Unemployment, business slow-downs, and shut-downs have become all too familiar in our daily lives.
Falling behind on chapter 13 plan payments for many families ravaged by Covid-19 is a certainty, and Congress’s new enactment is designed to address and rework solutions to allow plans to be suspended, modified, and recalculated so that they can be completed.
Facing Financial Hardships? Call Us for a Free Consultation.
Please call our office today, if you are involved in a pending chapter 13, and due to the pandemic are falling behind on your plan payments. Help might be right around the corner.