Yesterday NACBA shared that the U.S. Senate passed an amended H.R. 1651 “COVID-19 Bankruptcy Relief Extension Act of 2021”. The amended bill removed extensions of bankruptcy-related sunset provisions for the Consolidated Appropriations Act of 2021 that passed on December 27, 2020, but still included the CARES Act extenders.
Today, the U.S. House PASSED that amended H.R. 1651 bill, and it will head to President Biden’s desk for his signature. This bill extends for one year all of the bankruptcy-related provisions that were included in the CARES Act passed on March 27, 2020. These provisions will now expire on March 27, 2022. This includes the ability of a chapter 13 debtor to modify and extend a chapter 13 plan to a term of up to 7 years if needed, due to COVID-19 connected economic hardship. The bill also makes all debtors with confirmed chapter 13 plans by its date of enactment eligible for this relief.
We appreciate that NACBA has been able to directly assist our friends in the U.S. House and Senate, specifically House Judiciary Chairman Jerry Nadler (D-NY), Senate Judiciary Chairman Dick Durbin (D-IL) and Ranking Member Chuck Grassley (R-IA), with crafting the language and helping to gain the bipartisan support for the passage of this legislation.
We look forward to continuing our work to protect and enhance the rights of consumer bankruptcy debtors by keeping directly involved in legislative efforts, not just involving the COVID-19 crisis, but also additional efforts to improve the Bankruptcy Code.
Please direct any questions to NACBA’s Director of Government Affairs, Krista D’Amelio.