Important Notice to the Bar and Public Concerning Expiration of Certain Bankruptcy Code Amendments in the Consolidated Appropriations Act of 2021 (1/07/2022)

Friday, January 7, 2022

 

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UNITED STATES BANKRUPTCY COURT
DISTRICT OF NEW JERSEY

IMPORTANT NOTICE TO THE BAR AND PUBLIC CONCERNING
EXPIRATION OF CERTAIN BANKRUPTCY CODE AMENDMENTS IN
THE CONSOLIDATED APPROPRIATIONS ACT OF 2021

The Consolidated Appropriations Act of 2021 (“CAA”) was signed into law on December
27, 2020 and amended several sections in the Bankruptcy Code on a temporary basis to provide
certain relief to individuals and businesses affected by the pandemic. See CAA, Div. N, Title III
§ 320; CAA, Div. FF, Title X § 1001. Many of these amendments sunset on December 27,
2021. See CAA, Div. FF, Title X § 1001(a)(2), (b)(2), (c)(2), (d)(3), (e)(2), (h)(2), & (i)(2).

The Court has removed two events from CM/ECF which corresponded to lapsed
amendments under the CAA. “Motion for Discharge Pursuant to Section 1328(i),” which allowed,
under certain circumstances, a chapter 13 debtor to obtain a discharge despite missing up to three
mortgage payments, has been removed because the corresponding amendment has lapsed. See
CAA, Div. FF, Title X § 1001(b)(2). “Supplemental Proof of Claim for CARES Forbearance
Claim,” under which an eligible creditor could file a supplemental claim arising from a debtor’s
loan forbearance under the CARES Act, has been removed because the corresponding amendment
has lapsed. See id. at § 1001(d)(3).

It should be noted that Congress may still decide to extend the sunset dates for the lapsed
amendments and make it retroactive. An update will be posted should Congress take action.

Please continue to refer to the court’s website, www.njb.uscourts.gov for updates

 

                       Dated: January 7, 2022                      Jeanne A. Naughton, Clerk