On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act. A year later, on March 27, 2021, the President signed into law an amended version of the Act which extended the provisions in §1113 of the CARES Act for one year. As of today, no information extending these provisions has been received and therefore, the provisions expired March 27, 2022. The expired provisions affect Official Forms 101, 122A-1, 122B-1, 122C-1, and 201. As of March 28, 2022, those forms now revert back to the pre-CARES Act versions. Listed below are details of these recently expired provisions:
- Official Forms 101 and 201 were amended to permit a debtor to elect chapter 11, subchapter V treatment if aggregate debts are less than $7,500,000, and Forms 122A-1, 122B, and 122C-1, were amended to incorporate the CARES Act change to the definition of “current monthly income” and the calculation of disposable income.
The pre-CARES Act versions of these forms (as amended December 1, 2021, in the case of Official Form 122B, and incorporating the April 1, 2022, dollar adjustments in the case of Official Form 201) are:
- Official Form 101 (reverts to prior version of line 13)
- Official Form 201 (reverts to prior version of line 8) (Official Form 201 is affected by the expiring CARES Act provisions and the triennial adjusted dollar amounts that will become effective on April 1, 2022.)
- Official Form 122A-1 (reverts to prior version of line 10)
- Official Form 122B (reverts to prior version of line 10)
- Official Form 122C-1 (reverts to prior version of line 10)
- Chapter 13 Practice
The CARES Act added Subsection (d) to 11 U.S.C. § 1329 to permit a debtor to modify a confirmed plan, after notice and a hearing, if they were experiencing a “material financial hardship” due, “directly or indirectly,” to the COVID-19 pandemic. Debtors were given the ability to request a temporary suspension of plan payments and the life of a Chapter 13 plan was temporarily allowed to extend up to seven years after the first payment under the original confirmed plan became due. This subsection, 11 U.S.C. § 1329(d), expired on March 27, 2022.
There remains a possibility that these CARES Act provisions could be renewed or extended retroactively at a later time, and if so we will notify you promptly. We will continue to monitor the situation and inform you of any action.