Notice to Chapter 13 Debtors Impacted by the COVID-19 Pandemic

from the United States Bankruptcy Court for the Western District of Texas

The United States Bankruptcy Court for the Western District of Texas would like to remind chapter 13 debtors and their counsel that, under paragraph II(B) of the 17-02 Consolidated Standing Order For Adoption Of A District Form Plan signed October 16, 2017, those negatively impacted by the COVID-19 pandemic may seek relief by requesting a one-time moratorium on plan payments not to exceed sixty days, as follows:

Debtor Request for Moratoriums of Plan Payments.  Debtor may request a one–time moratorium on Plan payments not to exceed sixty (60) days.  Debtor shall file a Motion with the Court with fourteen (14) days negative notice to all creditors.  The Motion must state with specificity the basis for the request and the impact on a class or classes of creditors.  The Motion must state when the debtor will resume payments and how the missed payment(s) will be cured.  The purpose of such Motion is to assist Debtor in the performance under the Plan and to meet emergency situations that arise during the term of the Plan.  The duration of the Plan may be extended, but not beyond sixty (60) months from confirmation.  This provision may also be governed by the Standing Order for Chapter 13 Administration for the division in which this case is pending.

Debtors are encouraged to contact their attorney for assistance.

Best regards,
 
United States Bankruptcy Court - Western District of Texas