covid-19 bill

[gremlin]

Has anybody seen the bill that was passed due to covid? It basically states anyone effected due to the virus can extend plan from 5 to 7 years. Just throwing it out there for anyone that could be struggling with payments. My wife lost both her jobs due to this so I thought about possibly looking into it, but the thought of going through 7 years of this may not be worth it. any thoughts. hope everyone is staying safe!!

[despritfreya]

I have just filed a Modified Plan based upon the provision of the CARES Act. Be careful. . . the provision you reference appears only to apply to those whose case was confirmed before the enactment of the law.

Des.

[gremlin]

what exactly is the modified plan?

[justbroke]

what exactly is the modified plan?

Plan modifications are for Chapter 13 Plans that were previously confirmed. Once confirmed, a Chapter 13 Plan is modified by filing a Motion to Modify Confirmed Plan and then receiving approval from the court. Plan modification is a means to take corrective actions when a Chapter 13 Plan requires changes in order for the debtor to either stay in compliance with the terms or to provide relief for the debtor in cases where an economic event has occurred.

[Paper33]

I found out today that you could possibly get a hardship discharged. There are 3 criteria that you need to meet. Look into it.

[justbroke]

I found out today that you could possibly get a hardship discharged. There are 3 criteria that you need to meet. Look into it.

Be careful with hardship discharges; they don't discharge all debt that a normal Chapter 13 discharge brings.

I recommend that people consider converting to a Chapter 7 (unless they don't otherwise qualify). The reason for this may not be obvious and this comes down to experience and knowledge. The conversion (under 11 USC 348) would allow you to include any new debt into the converted Chapter 7, as if that debt existed when the Chapter 13 (original case) was filed. That can be a big bonus.

Strategy is important. Understanding the dynamics of a Chapter 13 hardship discharge, versus a conversion and discharge under Chapter 7, are things a seasoned attorney should know. It's an important distinction and can save a person from grief by simply seeking a hardship discharge.