New Bankruptcy Rules Taking Effect on December 1, 2017

There are a series of new bankruptcy rules that will take effect on December 1, 2017, and they will have an impact on consumer bankruptcy proceedings. Generally speaking, most of these new rules will have the greatest impact on financial institutions, but it is important for individual debtors who are thinking about filing for bankruptcy to understand how the new rules will work and how they will change aspects of personal bankruptcy.
First, we will say a few words about how these changes came about. Then we will discuss some of the changes and will explain what consumers in Oak Park should know about bankruptcy proceedings once the rules take effect on December 1. In the meantime, if you have questions about filing for consumer bankruptcy in the Chicago area, you should speak with an experienced bankruptcy lawyer.
Supreme Court Submits Amendments to the Federal Rules of Bankruptcy Procedure
Official changes to bankruptcy rules began when Chief Justice John Roberts, acting for the U.S. Supreme Court, submitted amendments to the Federal Rules of Bankruptcy Procedure to Congress back in April 2017. The Supreme Court adopted a number of different amendments, including amendments related to Chapter 13 filings, as well as proof of claim requirements and timelines. There is also a new Rule 3015.1
What are some of the amendments? The following provides debtors with information about specific amendments and changes to federal bankruptcy rules:
  • Paying the bankruptcy filing fee in installments: Under Amended Rule 1006, debtors have been able to file for bankruptcy protection with an application to pay the filing fee in installments if that debtor is unable to pay in any other way. The rule has been amended to make clear that “a voluntary petition by an individual shall be accepted for filing, regardless of whether any portion of the filing fee is paid, if accompanied by the debtor’s signed application . . .” This amendment should help to ensure that debtors are able to file for consumer bankruptcy with plans to pay the filing fee on an installment basis, even if they cannot make payment up front.
  • Requirements for filing a proof of claim: Under Amended Rule 3002, secured creditors, unsecured creditors, and equity security holders are required to file a proof of claim in order for that claim to be allowed. In addition, in voluntary Chapter 7 and Chapter 13 cases, a proof of claim must be filed no later than 70 days after the individual files for bankruptcy. These amendments are good for debtors because they clarify the timetable for when creditors must file a proof of claim.
  • Requirements for a Model Chapter 13 plan: Under Amended Rule 3015 and Rule 3015.1, a district can require that a debtor use a Local Form for a Chapter 13 plan if a number of specific conditions (regarding the Local Form) are satisfied. This is complicated but important, and you should always work with an Oak Park bankruptcy attorney before completing a Chapter 13 bankruptcy plan.
Contact an Oak Park Bankruptcy Attorney
The amendments and rule changes we mentioned above are just a few of those that will take effect on December 1, 2017. If you have questions about how the rule changes could impact your bankruptcy case, you should speak with a bankruptcy attorney in Oak Park as soon as possible. Contact the Emerson Law Firm for more information.
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