The Maryland Bankruptcy Court has responded aggressively to the ongoing COVID-19 emergency enacting orders as the crisis has unfolded.
With the extended shutdown and accompanying job loss, the court realizes that some chapter 13 debtors will be unable to make their payments in the coming months.
Just like the forbearance offered to FHA and Fannie Mae borrowers, the court has enacted a 4-month moratorium on payments.
Debtors have to file a motion with an accompanying affidavit under oath stating why they need the 4-month moratorium on payments.
In addition, debtors can extend plans to 7 years or 72 months which is 1 year or 12 months more than allowed in the current rules. As you know, chapter 13 plans are either 3 or 5-year plans.
The relevant part of the ORder is attached below.
ORDERED, that a motion for approval of a modification of a confirmed plan to extend the term of the plan to no more than seven years in accordance with 11 U.S.C § 1329(d) (a “CARES Act Modification Motion”) shall (i) include information to support the requested relief under § 1329(d)(1)(A), (ii) be accompanied by an affidavit verifying such information, and (iii) conspicuously state that the debtor is seeking the modification pursuant to § 1329(d); and it is further
ORDERED, the deadline to object to a CARES Act Modification Motion shall be twenty-one (21) days from the date of service; and it is further
ORDERED, that except as modified by the terms of this Order, Local Bankruptcy Rule 3015-4 shall apply to a CARES Act Modification Motion; and it is further ORDERED, that a motion to suspend plan payments for up to four months or a motion to vacate a current wage order for up to four months (either, a “Moratorium Motion”) shall be accompanied by a proposed order and an affidavit or other evidence supporting the need for the requested relief; and it is further
