Update from the U.S. Bankruptcy Court. Covid-19 has resulted in many Bankruptcy changes. Some of the more important are:
- The CARES Act amended the bankruptcy code to modify the definition of “current monthly income” to exclude any payment made under federal law relating to the national emergency declared by the President under the National Emergencies Act with respect to COVID-19, and such payments do not constitute “disposable income” in a Chapter 13.
- The CARES Act allows current confirmed Chapter 13 plans to seek modifications due to COVID-19 related hardships, and can be modified to extend the plan period up to 7 years after the first payment under the original confirmed plan became due.
- These amendments to the bankruptcy code, per the CARES Act, will last for one year from March 27, 2020
- The AZ Bankruptcy Court is handling all 341 Meetings telephonically through May 10th
- All trials and other hearings requiring evidence have been vacated through April 10th, all other hearings to be heard telephonically
- Amendments made to requirement for attorney to have the original wet signature on petition; they are allowing attorneys to obtain the client’s signature via email/fax as long as the attorney has verified details
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Platt and Westby, P.C. has offices in Phoenix and Gilbert, Arizona.