DS News - U.S. Bank

78 I N D U S T R Y I N S I G H T / J A S O N A . W E B E R , E S Q . Finally, after several years of debate, major changes have been approved that will have a profound impact on consumer bankruptcy cases. On April 27, 2017, the Supreme Court of the United States, through Chief Justice John Roberts, submitted to Congress amendments to the Federal Rules of Bankruptcy Procedure that set forth extensive changes dealing with forms and filing of claims. e proposed changes will take effect December 1, 2017, and will significantly change how creditors should approach consumer bankruptcy cases (Chapters 7, 12, and 13). e new rules will require crucial adjustments to conform to the shortened timelines for creditors to take action, particularly in Chapter 13 cases. NOTICE TO CREDITORS e amendments to Rule 2008 on notice to creditors now require that Creditors are to be provided at least 21 days' notice of the time fixed for filing an objection to confirmation of a Chapter 13 plan and be provided at least 28 days' notice of the confirmation hearing in a Chapter 13 case. Neither of these notice provisions existed prior to the proposed rule change and each provides creditors with advance notice for the date of the scheduled confirmation hearing and the deadline for filing an objection. FILING OF PROOF OF CLAIM e amendments to Rule 3002 which outline filing a proof of claim may have the biggest impact on creditors largely due to the shortened deadlines for filing claims and the requirement that all creditors—including secured creditors— must file proofs of claim within 70 days of the filing date of a Chapter 7, 12, or 13 case or within 70 days of the date of conversion to a Chapter 12 or 13 for the claim to be deemed allowed. e new rule does add a provision that allows a creditor the opportunity for an extension of time of up to 60 days to file a proof of claim upon motion and order, if the creditor can establish that it did not have a reasonable time to file a proof of claim because the debtor failed to timely file the list of creditors and addresses or because the notice was mailed to the creditor at a foreign address. e rule does clarify that a lien that secured a claim is not void should the creditor fail to file a proof of claim. Moreover, the new rule adds a two-stage deadline for filing proofs of claim secured by a security interest in the debtor's principal residence. ese claims must be filed with the WINTER IS COMING Supreme Court adopts new bankruptcy rules that will take effect December 1, 2017.

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