The recent amendments to the CARES Act passed this December, states that an individual debtor cannot be denied CARES Act relief (e.g., a foreclosure moratorium, forbearance, or an eviction moratorium) based on past or present bankruptcy filings. This amendment sunsets on December 27, 2021.
Mortgage servicers should take extra care when denying consumers CARES Act relief to ensure that the reason for such denial cannot be construed to have been based on the consumer’s bankruptcy status. It is unclear at this time what bases for denial of CARES Act relief for prior or current debtors will be considered acceptable by courts.
If you have already filed for these protections, or, believe you may be elligible, this amendment will prevent banks, landlords and other creditors from blocking your discharge.