The provisions of the CARES act have now sunsetted.
On March 27, 2021, just hours before the CARES Act bankruptcy provisions were about to sunset, President Biden signed COVID-19 Bankruptcy Relief Extension Act of 2021, Pub. L. No. 117-5 (Mar. 27, 2021) (H.R. 1651). The bill extended the temporary bankruptcy provisions under the CARES Act for an additional year, until March 27, 2022.
That date has just passed.
The NCLC put out a handy "cheat sheet" to help bankruptcy attorneys and debtors keep track of all the various provisions and when they expire. (also available as a PDF - table)
The sunset provisions in the CARES Act were extended for an additional year by the COVID-19 Bankruptcy Relief Extension Act of 2021, Pub. L. No. 117-5 (Mar. 27, 2021)
CAA = Consolidated Appropriations Act of 2021, Pub. L. No. 116-260 (Dec. 27, 2020)
CARES Act = Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136 (Mar. 27, 2020)
Summary of COVID Relief Provisions
| Provision | Bill Section | BK Code Section | Sunset |
|---|---|---|---|
|
COVID stimulus payments (recovery tax rebates) are not property of the estate |
CAA, div. FF, tit. 10, § 1001(a) |
11 U.S.C. § 541(b)(11) |
Dec. 27, 2021 |
|
COVID-related payments, including recovery tax rebates and child tax credit payments, are excluded from current monthly income |
CARES Act, § 1113(b)(1)(A) |
11 U.S.C. § 101(10A)(B)(ii)(V) |
Mar. 27, 2022 |
|
COVID-related payments, including recovery tax rebates and child tax credit payments, are not disposable income – |
CARES Act, § 1113(b)(1)(B) |
11 U.S.C. § 1325(b)(2) |
Mar. 27, 2022 |
|
COVID stimulus payments (recovery tax rebates) are not subject to the “operation of any bankruptcy or insolvency law” |
CAA, div. N, § 272(d), [amends Internal Revenue Code, adding new 26 U.S.C. § 6428A] |
N/A |
Dec. 27, 2021 |
|
Chapter 13 debtor may seek plan modification, if the plan was confirmed before Mar. 27, 2021 and the debtor is experiencing a COVID-related hardship, that would extend plan payments for up to seven years after initial payment on original plan was due |
CARES Act, § 1113(b)(1)(C) |
11 U.S.C. § 1329(d)(1) |
Mar. 27, 2022 |
|
Chapter 13 debtor may seek an early discharge if the debtor has missed three or fewer mortgage payments due to a COVID-related hardship or has entered into a loan forbearance or modification – |
CAA, div. FF, tit. 10, § 1001(b) |
11 U.S.C. § 1328(i)(1) |
Dec. 27, 2021 |
|
Debtor who is in a pending bankruptcy or has received a discharge cannot be denied a mortgage forbearance, protection under the foreclosure and eviction moratorium, and related relief provided under the CARES Act – |
CAA, div. FF, tit. 10, § 1001(c) |
11 U.S.C. § 525(d) |
Dec. 27, 2021 |
|
Mortgage servicer may file a “CARES forbearance claim,” which is a supplemental proof of claim for the amount forborne under a loan forbearance granted to a debtor under the CARES Act – |
CAA in div. FF, tit. 10, § 1001(d) |
11 U.S.C. § 501(f) and § 502(b)(9) (claim must be filed no later than 120 days after expiration of forbearance) |
Dec. 27, 2021 |
|
Debtor and any party, including a mortgage creditor, may move to modify the debtor’s plan to provide for a CARES forbearance claim |
CAA div. FF, tit. 10, § 1001(e) |
11 U.S.C. § 1329(e) |
Dec. 27, 2021 |
|
Debtor may have utility service maintained or restored after filing bankruptcy without paying a deposit, as long as the debtor pays for postpetition service – |
CAA div. FF, tit. 10, §1001(h) |
11 U.S.C. § 366(d) |
Dec. 27, 2021 |
The content of this article pertains to all US states and counties.
