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Administration of Mortgage Forbearance in Chapter 13 Cases

Friday, May 15, 2020

Among other relief, the recently-enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act authorizes the temporary forbearance of mortgage payments for certain borrowers, some of whom are debtors in Chapter 13 cases.  In order to uniformly and quickly address notices of mortgage forbearance filed in Chapter 13 cases, the court recently entered an administrative order (No. 1013) that allows the Chapter 13 trustees to immediately suspend conduit mortgage disbursements pending further order of the court when a notice of forbearance is filed.