4-10-20 Bankruptcy Alert

On April 10, 2020, the U.S. Bankruptcy Court for the Southern District of New York issued General Order M-545, which notified parties of the creation of an event to facilitate the filing of a Notice of Temporary Forbearance.

The entire order can be accessed at http://www.nysb.uscourts.gov/sites/default/files/m545.pdf

The order addresses the following items:

Original Signature Requirement: The requirement that a CM/ECF user secure the signor's original signature prior to electronically filing a document bearing that signature is suspended, provided that prior to filing, the user has verified with the signer that the signer has received the entire document to be filed and communicated with the signer regarding the document and (1) has obtained express written permission to affix the signer's signature to the document and has retained a hard copy of that permission; (2) has, at the time of filing, obtained an image of the signature page and retained a hard copy; or (3) has obtained the signer's digital signature via digital signature software that provides authentication and has instructed the signer to send or deliver the original papers.

Forbearance of Mortgage Debt: Any creditor (mortgage holder or servicer) who provides a temporary suspension of mortgage payments to a debtor shall file with the Court a Notice of Temporary Forbearance. A copy of the form Notice can be found at the above provided link. Communication by a creditor to a debtor regarding forbearance and any statement that follows during the forbearance period shall not be considered a violation of the automatic stay. A loss mitigation order is not needed for a debtor to enter a forbearance agreement; however, any party that requests a forbearance agreement but is unable to come to a consensual resolution within 14 days of the request may come before the Court, under the Court’s Loss Mitigation Program Procedures, and ask the Court to supervise such request.

This Order is temporary in nature and will expire upon the earlier of: (a) the entry of a further Order of this Court addressing the issues herein and (b) July 1, 2020.

Should you need assistance with preparing this Notice during this time, please do not hesitate to reach out to us.

For more information contact:

Attorney: Natalie A. Grigg, Esq.

Phone: 585-445-2610

Email: ngrigg@woodsdefaultservices.com

Bankruptcy Supervisor: Jessica Suhr

Phone: 585-445-2796

Email: jsuhr@woodsdefaultservices.com