Individuals filing for bankruptcy under Chapter 13 must use a new form that presents their payment plan in a more uniform and transparent manner and creditors will have less time to submit a proof of claim, under new bankruptcy rules and form amendments that took effect Dec. 1.
Chapter 13, sometimes known as the wage earner’s plan, enables qualified individual filers to reschedule and make debt payments, allowing them to keep their homes and other property.
Bankruptcy courts previously had relied on local versions of Chapter 13 plans, which varied from district to district, in resolving Chapter 13 cases.
They now must either use a new national Bankruptcy Form 113, or create a locally adapted form that contains key elements of the national form, according to a news release issued by the court earlier this month.
In recent months, courts have been updating electronic filing systems and notifying local bankruptcy lawyers and filers of the pending changes.
The deadline for creditors to file a proof of claim was revised in an amendment to Federal Rules of Bankruptcy Procedure 3002.
The new deadline will affect bankruptcies filed under Chapter 7, in which debtors liquidate assets; Chapter 12, which enables family farmers and fishermen to restructure their finances; and Chapter 13.
Previously creditors had 90 days after an initial meeting of creditors was held. Now, a proof of claim must be submitted within 70 days of the filing of a bankruptcy petition.
Federal rules amendments typically follow a three-year process, which includes multiple layers of review and extensive public comment.
––––––––––––––––––––
Subscribe to the Legal News!
http://legalnews.com/Home/Subscription
Full access to public notices, articles, columns, archives, statistics, calendar and more
Day Pass Only $4.95!
One-County $80/year
Three-County & Full Pass also available
