The COVID-19 Bankruptcy Relief Extension Act was passed on March 27, 2021. The act extends a umber of bankruptcy related provisions contained in the Coronvirus Aid, Relief, and Economic Security Act (“CARES Act”) which had been enacted on March 27, 2020. The CARES Act provided only temporary relief. The CARES Act was set to expire on March 27, 2021. The COVID-19 Bankruptcy Relief Extension Act extends provisions of the CARES Act until March 27, 2022.
The CARES Act permitted Chapter 13 Bankruptcy Debtors to extend their confirmed plans to a total of 7 years. Ordinarily, a Chapter 13 Bankruptcy plan may not exceed 5 years. Chapter 13 Debtors with confirmed plans as of March 27, 2020, may seek additional time. Such Debtors must show a “material financial hardship” as a result of COVID-19 in order to receive the additional time. The COVID-19 Bankruptcy Extension Act simply extended this relief for one more year.