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COVID-19 And Bankruptcy: Chapter 13 Debtors

Chapter 13 Debtors

Are Chapter 13 Debtors Experiencing Hardships During The COVID-19 Crisis Permitted To Extend Their Plan Payments?

Yes, debtors in a current chapter 13 bankruptcy plan which was confirmed prior to the passage of the CARES act, may extend their plan not to exceed a total of seven years.

How Can I Extend My Payment Plan In A Chapter 13 Bankruptcy Due To The COVID-19 Crisis?

In order to extend your plan payments in a chapter 13 due to the COVID-19 crisis, you must file a new plan and motion to confirm the plan. You need to understand the trustee will likely request documentation or proof that you have been economically injured by the COVID-19 crisis.

You should be contacting the trustee, through your attorney, to inform the trustee that you are not able to make your plan payments due to layoffs or loss of work due to the COVID-19 crisis. This puts the trustee on notice that there is a legitimate reason for missing your plan payments and hopefully avoids a motion to dismiss your chapter 13 case.

Do These Extensions Apply To New Bankruptcy Cases Or Is This Temporary Amendment For Cases Already In The Repayment Phase?

The seven-year chapter 13 plan exemption does not apply to any cases that did not have a confirmed chapter 13 plan prior to the passage of the CARES act.

For more information on Extension Of Chapter 13 Plan Payments In CA, a consultation with an experienced California Bankruptcy Attorney is your next best step. Get the information and legal answers you are seeking by calling (916) 685-7878 today.

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