CARES Act Amendment
In two decisions on 7/30/20, by two different bankruptcy judges in two different states, the bankruptcy judges’ decisions agree that the CARES Act Amendment, which allows chapter 13 plans to be extended to last for seven years (instead of the statutory 5 year maximum Chapter 13 plan length stated in 11 USC ……) is applicable only to plans confirmed before March 27, 2020. 3/27/20 is the date the CARES Act went into effect. A Chapter 13 plan confirmed after 3/27/20 can only be maximum length 5 years (60 months), NOT 7 years. No answer yet as how Courts in the 9th Circuit will decide this issue. Also possible that further legislation will be passed to allow Chapter 13 plans confirmed after 3/27/20 to be 7 years maximum length, instead of 5 years maximum length.
The 2 Bky Ct opinions are:
- In re Drews, 19-52728 (Bankr. E.D. Mich. July 30, 2020)
- In re Bridges, 19-31012 (Bankr. S.D. Ill. July 30, 2020)