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» VISIT US ONLINE @ DSNEWS.COM 79 COVER STORY INDUSTRY INSIGHT INDUSTRY INSIGHT INDUSTRY INSIGHT Official Form 410, the Attachment (Official Form 410A), and an escrow account statement no later than 70 days of the filing date (or conversion date). Also, in order to be timely, all other loan documents evidencing the claim— e.g. the note (allonge), mortgage, assignment of mortgage—must be filed as supplements to the proof of claim within 120 days of the filing date (or conversion date). For such a claim to be timely, both of these deadlines must be met. e new 70/120-day time period is significantly shortened compared to the current rules which permit a claim to be timely if it is filed within 90 days after the Section 341 Meeting of Creditors date, which, in practice, permits claims to be filed within an approximately 120- to 140- day time period from the filing date or conversion date. OBJECTION TO CLAIMS Rule 3007 requires at least 30 days' notice to creditors of an objection to claim. e objection may be filed on "negative notice" and provides for service via first class mail to the name and address most recently designated on the creditors' original or amended proof of claim or in accordance with Rule 7004 for federally insured depository institutions. is is significant because it clarifies that Rule 7004 no longer applies to the service of most claim objections with the exception of insured depository institutions. Instead, service can be accomplished by first class mail, meaning creditors must be cognizant of the name and address listed on their proof of claim and may no longer rely on raising Rule 7004 as a defense to a claim objection. DETERMINING THE AMOUNT OF SECURED CLAIMS Rule 3012 sets forth numerous ways for the court to determine the amount of secured claims, to and including by motion, claim objection, or by Chapter 12 or 13 plan. Most importantly, the new rule, in combination with amended Rule 3015 (see below), provides that any determination made in a plan formed under Rule 3012 regarding the amount of a secured claim is binding on the holder of the claim even if the holder files a contrary proof of claim, and regardless of whether an objection to the claim has been filed. is is a significant change to the prior rules, particularly for creditors in Florida and similarly situated districts, which will now require creditors to file objections to confirmation of Chapter 12 and Chapter 13 Plans or be bound by the plan terms upon confirmation. RULE 3015: FILING OF PLAN, EFFECT OF CONFIRMATION OF PLAN—THE MODEL CHAPTER 13 PLAN is rule requires the use of an Official Form Model Chapter 13 Plan, unless a Local Form is adopted and is in compliance with Rule 3015.1. For example, the Southern District of Florida has recently announced it will "opt out" and adopt a Local Form and has solicited public comment prior to its implementation in December. It would not be a surprise to see many districts across the country announce similar "opt-out" plans, enabling them to marry the content and notice provisions required under the Model Plan with the local customs and language incorporated into the Local Form. e Model Chapter 13 Plan is intended to streamline the plan-review process for creditors. e new rule also requires an objection to confirmation to be filed at least seven days before the confirmation hearing. As noted above, the proposed changes also provide that a determination of value or "valuation" of a secured claim done through the plan will become effective and binding upon confirmation, despite the absence of a claim objection or contrary proof of claim. When the new rules become effective December 1, 2017, they will apply to all cases filed after that date and all pending cases "insofar as just and practicable," meaning they will likely apply to almost all consumer bankruptcy cases, so it is important that creditors take immediate measures to ensure compliance under these rules. Although the shortened deadlines and increased attention to plan treatment may be burdensome in some respects, the above rule changes may provide some assistance to creditors by establishing predictable proof-of-claim deadlines, consistent plan content, and clear notice and objection deadlines across all districts, which should enable creditors to more efficiently process consumer bankruptcy cases.

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