The Dangers of Extending a Plan Too Long – Or Alternatively, Why Take as Little Time as Possible

By Joseph A. Bledsoe, III, Chapter 13 Standing Trustee for the Eastern District of North Carolina (New Bern)

Under section 1113(b)(1)(C) of the CARES Act, upon the request of a debtor, and after notice and a hearing, a plan confirmed may be extended up to 7 years from the date the first payment under the original plan came due if “the debtor is experiencing or has experienced a material financial hardship due, directly or indirectly, to the coronavirus disease 2019 . . .

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