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The CARES Act and Chapter 13 Plan Modifications

Monday, February 22, 2021

The CARES Act provisions authorizing pandemic-related modifications to Chapter 13 plans, in 11 U.S.C. § 1329(d), expire on March 27, 2021.   Proposed plans so modified must be confirmed prior to expiration.

March 26, 2021 has been set as a special final date for Chapter 13 hearings at which such modified plans that cannot be heard on the regular March 19, 2021 date for Chapter 13 hearings may yet be can be heard for confirmation prior to the CARES Act expiration.  Fed. R. Bankr. P. 2002(b) mandates a minimum 28-day notice for hearings to consider confirmation of Chapter 13 plans.  Therefore, modified plans pursuant to Section 1329(b) must be filed and served by February 26, 2021 unless the Court, for cause, shortens the 28-day notice for hearing pursuant to Fed. R. Bankr. P. 9006(c), or the 21-day opportunity to object pursuant to LBR 9006-1(c).  Counsel for parties having a proposed plan heard on March 26, 2021 should be prepared to upload a proposed confirmation order, incorporating any provisions specified by the Court at the hearing, immediately after the hearing to enable the Court to enter the order prior to the expiration.