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Public Notice Regarding Consolidated Appropriations Act and New CM/ECF Events

Thursday, June 24, 2021


New Events Related to 11 U.S.C. Section 1328(i)

The Consolidated Appropriations Act (“CAA”) creates a new subsection, 11 U.S.C. Section 1328(i), which permits a court to grant a regular (not hardship) Chapter 13 discharge, even if the debtor is not current on no more than three residential mortgage payments.  The debtor’s delay in payments on the mortgage must have (1) been caused by financial hardship related to the pandemic, or (2) the plan must provide for curing the default or the debtor must have entered into a forbearance agreement.  The debtor should request this type of discharge by motion, and the statute requires notice and a hearing.  The court will consider the factors in section 1328(i) of the Bankruptcy Code when determining whether to grant a discharge under this new subsection.

Two new CM/ECF events (Motion for Discharge Pursuant to 1328(i) and Order Discharging Chapter 13 Debtor(s) Pursuant to 1328(i)) were created to accommodate the new subsection (i) of Section 1328 of the Bankruptcy Code. The motion event is located under Bankruptcy > Motion > Motion for Discharge Pursuant to 1328(i).

The CAA amendments sunset on December 27, 2021, one year after the CAA was enacted, and the order will also be retired after that date.

New Event – Notice of Satisfaction of Claim

A new CM/ECF event (Notice of Satisfaction of Claim) was created for use when filing the corresponding notice that a claim is satisfied. The event is located under Bankruptcy>Claim Actions>Notice of Satisfaction of Claim.

M. Regina Thomas
Clerk of Court