CANB — General Order 41: The Corona Virus Economic Stabilization Act of 2020 (“Cares Act”) Concerning Forbearance Notices

Source: https://www.canb.uscourts.gov/sites/default/files/general-orders/Generalorder41.pdf

1

2

3

4

5

6

7
UNITED STATES BANKRUPTCY COURT
8
NORTHERN DISTRICT OF CALIFORNIA
9

10
In re:
11
THE CORONA VIRUS ECONOMIC
12 STABILIZATION ACT OF 2020 (“CARES
ACT”) CONCERNING FORBEARANCE
NOTICESCOURT 13 California 14

Of GENERAL ORDER 41 15 As a result of the COVID-19 pandemic, Congress passed and the President of the United 16 District States signed the Corona Virus Economic Stabilization Act of 2020 (“CARES ACT”), whichBANKRUPTCY 17 permits individual borrowers on certain federally backed loans to request loan forbearance relief 18 Northern from the lender. In instances where the borrower is a Chapter 13 debtor, the lender or its servicingSTATES 19 The agent may file a Notice of Forbearance (“Notice”) on the bankruptcy court’s docket or claims For 20 registry. To avoid any dispute regarding whether the Notice may require a Chapter 13 debtor toUNITED 21 amend or modify their Chapter 13 plan, and to provide an expedited, cost-efficient method for 22 standing Chapter 13 Trustees to process such Notices, 23 IT IS HEREBY ORDERED THAT: 24 Upon the filing of a Notice in a Chapter 13 case, the Chapter 13 Trustee shall administer the 25 Notice in the same manner as a Notice of Mortgage Payment Change filed under Federal Rule of 26 Bankruptcy Procedure 3002.1, provided that the Notice: 27 (i) identifies the debtor(s); 28

1

GENERAL ORDER 41

1 (ii) identifies the claim to which the forbearance is applicable;

2 (iii) states the month the forbearance starts; and

3 (iv) states the number of months of the forbearance.

4 If the Notice does not comply with items (i) - (iv), the Trustee and any other interested party

5 may seek any applicable remedy under the Bankruptcy Code. This General Order does not prejudice

6 or alter any interested parties’ right to pursue applicable remedies under the Bankruptcy Code, the

7 Federal Rules of Bankruptcy Procedure, or other applicable law.

8 IT IS SO ORDERED.

9 Dated: May 1, 2020

10

11 _________________________________
Charles Novack
12 Chief Bankruptcy Judge

COURT 13 California 14 Of 15

16 DistrictBANKRUPTCY 17

18 NorthernSTATES 19 The

For 20UNITED 21

22

23

24

25

26

27

28

2

GENERAL ORDER 41