Amendments to the Federal Rules of Bankruptcy Procedure – Part One
The U.S. Supreme Court recently adopted amendments to The Federal Rules of Bankruptcy Procedures and submitted them to Congress for review & final approval last year. Congress approved the amendments which went into effect 12/01/2011. The
amendments change mortgage holders and servicer’s requirements for filing Proof of Claims (POC) and requiring notices relating to claims secured by a mortgage on the debtor’s primary residence. This imposes new obligations on mortgage holders, servicers, and their attorneys when the debtor’s are in a current or new bankruptcy case. Failure to adhere to these new guidelines could result in serious consequences or sanctions imposed by the bankruptcy court. Due to the intricate nature of these new amendments, it is wise to seek an experienced bankruptcy attorney who can review your situation and advise you. These rule changes mainly affect Chapter 13 bankruptcy cases which Chapter 13 bankruptcy attorneys should be aware of. Some of the changes described above in more detail concern the changes to the Proof of Claim forms, the new escrow statement requirement, a new requirement for the filing of payment change notices in which the mortgage company is required to file with 21 days of the effective date of the payment change. This is required on all Chapter 13 cases involving the debtors post petition payments. In addition, there is a required notice of any post petition fees, expenses and charges that
are to be filed within 180 days after the charge occurred. Even when completed by the mortgage holder or servicer, the Chapter 13 trustee and the debtor’s bankruptcy attorney have the right to object up to one year from the filing of the post petition fees, charges or expenses. It is important to hire an Arizona bankruptcy attorney that is experienced and would be able to help. In the next article, we will explore in more detail the new Proof of Claim forms (Official Form B10 and Attachment A; FRBP 3001(c) (1) and 3001 (c) (2)) and the additional information required to be filed with the bankruptcy court, so stay tuned.