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A defaulted chapter 13 plan can be extended under the CARES Act

Good news!  A New Orleans judge has found the CARES Act to permit a 7 year extension of a chapter 13 plan whose payments were in default prior to enactment of the Act, holding that the currency of payments is irrelevant. In fact, most chapter 13 plans are in a state of default and ultimately fail as a result. The CARES Act’s goal to provide debtors with the extra leg up has been validated, further boosting fresh start opportunities in our new normal of COVID-19.