On April 23, 2020, the Bankruptcy Court for the District of Puerto Rico issued General Order 20-07 adopting the following procedures in light of the COVID-19 health emergency:
- The automatic stay provisions of Section 362(a) of the Bankruptcy Code are modified solely for debtors to seek and/or commence a loss mitigation option, such as loan modification, forbearance agreement, repayment plan, or moratorium, without the need of filing a motion and obtaining prior court’s authorization.
- Whether the forbearance agreement, repayment plan, moratorium and/or loss mitigation are obtained or not by the creditor, the debtor shall file a report with the court within twenty-one (21) days on the results of the effort.
You may access the full order here.
The content of this McV Alert has been prepared for information purposes only. It is not intended as, and does not constitute, either legal advice or solicitation of any prospective client. An attorney-client relationship with McConnell Valdés LLC cannot be formed by reading or responding to this McV Alert. Such a relationship may be formed only by express agreement with McConnell Valdés LLC.