2011 Bankruptcy Code Amendments

[tobee43]

Oct 19, 2010

As of October 2010, Congress has proposed a new batch of amendments to Title 11 of the Federal Code. Title 11 is the Federal Code section that governs all bankruptcy cases in the US. These amendments are scheduled take effect in December of 2010 and be added to the code books in the first part of 2011.

Most of the proposed amendments to the Bankruptcy code have been proposed to deal with Congress's newly enacted Chapter 15 bankruptcy section. Chapter 15 is designed to help debtors with assets in the US and foreign countries, regardless of whether the debtor lives in the US.

However a lot of the new rules propose changes to Chapter 7 bankruptcy. Chapter 7, or liquidation bankruptcy, is the only bankruptcy chapter where the debtor's assets are sold to repay their debts.

Some of the changes that will take affect include:

1. The debtor will have a shorter time to file a list of creditors during an involuntary bankruptcy case (applies to all chapters).

2. A Chapter 7 debtor will have longer to file a statement of completion of their required course in personal financial management.

3. If a debtor converts their case from a Chapter 11, 12, or 13 case to a Chapter 7 there will be a different time period to object to a exemption claim.

4. There will be different timings for filing motions under Chapter 7.

5. The clerk of the court will be required to provide a notice to individual debtors in a Chapter 7 or 13 case that if they fail to file a statement of completion of a personal finance course their bankruptcy case may be dismissed.

6. If a creditor has any objections to the discharge of a debt under Chapter 7, they will have to file a motion rather than by a complaint.

In addition to these proposed amendments there are other amendments that are planned to come into effect on December 1, 2011. These are:

1. New Bankruptcy Rule 2003 which will require a statement to be filed after the 341 creditor meeting has been adjourned.

2. New Rule 2019 will require increased disclosures concerning party's interests during Chapter 9 and 11.

3. Rule 3002.1 which will implement section 1322(b)(5). This rule will permit a Chapter 13 debtor to cure a default and maintain payments on their home mortgage.

As far as can be seen at this time, none of these rules are intended to be retroactive. This means that anyone seeking to take advantage of these rules will have to file for bankruptcy after these rules have to file for bankruptcy after these rules have taken
effect or they cannot be used. If you have already filed for bankruptcy, the court will not permit you to withdraw your petition in order to take advantage of the new rules taking effect on December 1, 2010 without waiting the statutory time for refiling.

If you are contemplating filing for bankruptcy and want to take advantage of these proposed rules, especially the ones being enacted in 2011, try to use the time to take advantage of other debt solutions. Debt settlement, debt management, or debt consolidation are good alternatives to bankruptcy and will have less of an effect on your credit score.

http://www.associatedcontent.com/article/5910504/2011_bankruptcy_code_amendments.html?cat=17

[HHM]

Most of the changes are procedural in nature, nothing to really get excited about.

[tobee43]

Most of the changes are procedural in nature, nothing to really get excited about.

well i for one was REALLY excited about:

2. A Chapter 7 debtor will have longer to file a statement of completion of their required course in personal financial management.

LOL!!! that's a real big help to everyone....(i recall our course spoke about payday loans continuously.... which prior to the course i had no idea existed).

and i do have one question as to number 6.....so a motion would be what?? more work than to file a "complaint"....???

[free2breathe]

well i for one was REALLY excited about:

2. A Chapter 7 debtor will have longer to file a statement of completion of their required course in personal financial management.

LOL!!! that's a real big help to everyone....(i recall our course spoke about payday loans continuously.... which prior to the course i had no idea existed).

and i do have one question as to number 6.....so a motion would be what?? more work than to file a "complaint"....???

I think debee discovered this fairly early in December. As of Dec 1, 2010 the debtor is allowed 60 days to get that certificate of completion filed. Of course, I still would have gotten mine done prior to my 341, I'm a little "AR" about getting things done in plenty of time

[tobee43]

I think debee discovered this fairly early in December. As of Dec 1, 2010 the debtor is allowed 60 days to get that certificate of completion filed. Of course, I still would have gotten mine done prior to my 341, I'm a little "AR" about getting things done in plenty of time

well the way i'm reading this...is one will NO LONGER have to file the statement of completion at all.........so shoot that would have meant for me, we would have never learned about payday loans....

as hhm was clarifying is i do also believe these changes are more procedural than anything earth shaking for anyone.

[debee]

well the way i'm reading this...is one will NO LONGER have to file the statement of completion at all.........so shoot that would have meant for me, we would have never learned about payday loans....

as hhm was clarifying is i do also believe these changes are more procedural than anything earth shaking for anyone.

That's not correct, tobee. The statement still has to be filed, but the debtor now has 60 days instead of 45 as f2b pointed out. You can read about it by reviewing Federal Rules of Bankruptcy Procedure 1007 here: http://www.law.cornell.edu/rules/frbp/.

When HHM refers to the changes being "procedural", I believe he is referring to the fact that all of the changes mentioned in the article are changes to the Federal Rules of Bankruptcy Procedure which went into effect December 1, 2010 as opposed to Title 11 BK Code.

[tobee43]

That's not correct, tobee. The statement still has to be filed, but the debtor now has 60 days instead of 45 as f2b pointed out. You can read about it by reviewing Federal Rules of Bankruptcy Procedure 1007 here: http://www.law.cornell.edu/rules/frbp/.

When HHM refers to the changes being "procedural", I believe he is referring to the fact that all of the changes mentioned in the article are changes to the Federal Rules of Bankruptcy Procedure which went into effect December 1, 2010 as opposed to the Title 11 BK Code.

i don't know about that.....

2. A Chapter 7 debtor will have longer to file a statement of completion of their required course in personal financial management.

i'm not making up the procedures just quoting them....i'm not seeing anything about 60 days....in #2.

really...how silly are those courses anyway really they should have just eliminated them altogether or at least made an assessment based on purpose of filing...

and HAPPY NEW YEARS to you deb!!!

but i'm checking out the website you listed now......

[tobee43]

i'm lookin for that 60 days now......



Rule 1007. Lists, Schedules, Statements, and Other Documents; Time Limits
(a) CORPORATE OWNERSHIP STATEMENT, LIST OF CREDITORS AND EQUITY SECURITY HOLDERS, AND OTHER LISTS.

(1) Voluntary case.

In a voluntary case, the debtor shall file with the petition a list containing the name and address of each entity included or to be included on Schedules D, E, F, G, and H as prescribed by the Official Forms. If the debtor is a corporation, other than a governmental unit, the debtor shall file with the petition a corporate ownership statement containing the information described in Rule 7007.1. The debtor shall file a supplemental statement promptly upon any change in circumstances that renders the corporate ownership statement inaccurate.

(2) Involuntary case.

In an involuntary case, the debtor shall file, within seven days after entry of the order for relief, a list containing the name and address of each entity included or to be included on Schedules D, E, F, G, and H as prescribed by the Official Forms.

(3) Equity security holders.

In a chapter 11 reorganization case, unless the court orders otherwise, the debtor shall file within 14 days after entry of the order for relief a list of the debtor's equity security holders of each class showing the number and kind of interests registered in the name of each holder, and the last known address or place of business of each holder.

(4) Chapter 15 case.

In addition to the documents required under § 1515 of the Code, a foreign representative filing a petition for recognition under chapter 15 shall file with the petition: (A) a corporate ownership statement containing the information described in Rule 7007.1; and (B) unless the court orders otherwise, a list containing the names and addresses of all persons or bodies authorized to administer foreign proceedings of the debtor, all parties to litigation pending in the United States in which the debtor is a party at the time of the filing of the petition, and all entities against whom provisional relief is being sought under § 1519 of the Code.

(5) Extension of time.

Any extension of time for the filing of the lists required by this subdivision may be granted only on motion for cause shown and on notice to the United States trustee and to any trustee, committee elected under § 705 or appointed under § 1102 of the Code, or other party as the court may direct.
(b) Schedules, statements, and other documents required.

(1) Except in a chapter 9 municipality case, the debtor, unless the court orders otherwise, shall file the following schedules, statements, and other documents, prepared as prescribed by the appropriate Official Forms, if any:

(A) schedules of assets and liabilities;

(B) a schedule of current income and expenditures;

(C) a schedule of executory contracts and unexpired leases;

(D) a statement of financial affairs;

(E) copies of all payment advices or other evidence of payment, if any, received by the debtor from an employer within 60 days before the filing of the petition, with redaction of all but the last four digits of the debtor's social-security number or individual taxpayer-identification number; and

(F) a record of any interest that the debtor has in an account or program of the type specified in § 521(c) of the Code.

(2) An individual debtor in a chapter 7 case shall file a statement of intention as required by § 521(a) of the Code, prepared as prescribed by the appropriate Official Form. A copy of the statement of intention shall be served on the trustee and the creditors named in the statement on or before the filing of the statement.

(3) Unless the United States trustee has determined that the credit counseling requirement of § 109(h) does not apply in the district, an individual debtor must file a statement of compliance with the credit counseling requirement, prepared as prescribed by the appropriate Official Form which must include one of the following:

(A) an attached certificate and debt repayment plan, if any, required by § 521(b);

(B) a statement that the debtor has received the credit counseling briefing required by § 109(h)(1) but does not have the certificate required by § 521(b);

(C) a certification under § 109(h)(3); or

(D) a request for a determination by the court under § 109(h)(4).

(4) Unless § 707(b)(2)(D) applies, an individual debtor in a chapter 7 case shall file a statement of current monthly income prepared as prescribed by the appropriate Official Form, and, if the current monthly income exceeds the median family income for the applicable state and household size, the information, including calculations, required by § 707(b), prepared as prescribed by the appropriate Official Form.

(5) An individual debtor in a chapter 11 case shall file a statement of current monthly income, prepared as prescribed by the appropriate Official Form.

(6) A debtor in a chapter 13 case shall file a statement of current monthly income, prepared as prescribed by the appropriate Official Form, and, if the current monthly income exceeds the median family income for the applicable state and household size, a calculation of disposable income made in accordance with § 1325(b)(3), prepared as prescribed by the appropriate Official Form.

(7) An individual debtor in a chapter 7 or chapter 13 case shall file a statement of completion of a course concerning personal financial management, prepared as prescribed by the appropriate Official Form. An individual debtor shall file the statement in a chapter 11 case in which § 1141(d)(3) applies.

(8) If an individual debtor in a chapter 11, 12, or 13 case has claimed an exemption under § 522(b)(3)(A) in property of the kind described in § 522(p)(1) with a value in excess of the amount set out in § 522(q)(1), the debtor shall file a statement as to whether there is any proceeding pending in which the debtor may be found guilty of a felony of a kind described in § 522(q)(1)(A) or found liable for a debt of the kind described in § 522(q)(1)(B).
(c) Time limits.

In a voluntary case, the schedules, statements, and other documents required by subdivision (b)(1), (4), (5), and (6) shall be filed with the petition or within 14 days thereafter, except as otherwise provided in subdivisions (d), (e), (f), and (h) of this rule. In an involuntary case, the list in subdivision (a)(2), and the schedules, statements, and other documents required by subdivision (b)(1) shall be filed by the debtor within 14 days of the entry of the order for relief. In a voluntary case, the documents required by paragraphs (A), (C), and (D) of subdivision (b)(3) shall be filed with the petition. Unless the court orders otherwise, a debtor who has filed a statement under subdivision (b)(3)(B), shall file the documents required by subdivision (b)(3)(A) within 14 days of the order for relief. In a chapter 7 case, the debtor shall file the statement required by subdivision (b)(7) within 60 days after the first date set for the meeting of creditors under § 341 of the Code, and in a chapter 11 or 13 case no later than the date when the last payment was made by the debtor as required by the plan or the filing of a motion for a discharge under § 1141(d)(5)(B) or § 1328(b) of the Code. The court may, at any time and in its discretion, enlarge the time to file the statement required by subdivision (b)(7). The debtor shall file the statement required by subdivision (b)(8) no earlier than the date of the last payment made under the plan or the date of the filing of a motion for a discharge under §§ 1141(d)(5)(B), 1228(b), or 1328(b) of the Code. Lists, schedules, statements, and other documents filed prior to the conversion of a case to another chapter shall be deemed filed in the converted case unless the court directs otherwise. Except as provided in § 1116(3), any extension of time to file schedules, statements, and other documents required under this rule may be granted only on motion for cause shown and on notice to the United States trustee, any committee elected under § 705 or appointed under § 1102 of the Code, trustee, examiner, or other party as the court may direct. Notice of an extension shall be given to the United States trustee and to any committee, trustee, or other party as the court may direct.
(d) List of 20 largest creditors in chapter 9 municipality case or chapter 11 reorganization case.

In addition to the list required by subdivision (a) of this rule, a debtor in a chapter 9 municipality case or a debtor in a voluntary chapter 11 reorganization case shall file with the petition a list containing the name, address and claim of the creditors that hold the 20 largest unsecured claims, excluding insiders, as prescribed by the appropriate Official Form. In an involuntary chapter 11 reorganization case, such list shall be filed by the debtor within 2 days after entry of the order for relief under § 303(h) of the Code
(e) List in chapter 9 municipality cases.

The list required by subdivision (a) of this rule shall be filed by the debtor in a chapter 9 municipality case within such time as the court shall fix. If a proposed plan requires a revision of assessments so that the proportion of special assessments or special taxes to be assessed against some real property will be different from the proportion in effect at the date the petition is filed, the debtor shall also file a list showing the name and address of each known holder of title, legal or equitable, to real property adversely affected. On motion for cause shown, the court may modify the requirements of this subdivision and subdivision (a) of this rule.
(f) Statement of social security number.

An individual debtor shall submit a verified statement that sets out the debtor's social security number, or states that the debtor does not have a social security number. In a voluntary case, the debtor shall submit the statement with the petition. In an involuntary case, the debtor shall submit the statement within 14 days after the entry of the order for relief.
(g) Partnership and partners.

The general partners of a debtor partnership shall prepare and file the list required under subdivision (a), schedules of the assets and liabilities, schedule of current income and expenditures, schedule of executory contracts and unexpired leases, and statement of financial affairs of the partnership. The court may order any general partner to file a statement of personal assets and liabilities within such time as the court may fix.
(h) Interests acquired or arising after petition.

If, as provided by § 541(a)(5) of the Code, the debtor acquires or becomes entitled to acquire any interest in property, the debtor shall within 14 days after the information comes to the debtor's knowledge or within such further time the court may allow, file a supplemental schedule in the chapter 7 liquidation case, chapter 11 reorganization case, chapter 12 family farmer's debt adjustment case, or chapter 13 individual debt adjustment case. If any of the property required to be reported under this subdivision is claimed by the debtor as exempt, the debtor shall claim the exemptions in the supplemental schedule. The duty to file a supplemental schedule in accordance with this subdivision continues notwithstanding the closing of the case, except that the schedule need not be filed in a chapter 11, chapter 12, or chapter 13 case with respect to property acquired after entry of the order confirming a chapter 11 plan or discharging the debtor in a chapter 12 or chapter 13 case.
(i) Disclosure of list of security holders.

After notice and hearing and for cause shown, the court may direct an entity other than the debtor or trustee to disclose any list of security holders of the debtor in its possession or under its control, indicating the name, address and security held by any of them. The entity possessing this list may be required either to produce the list or a true copy thereof, or permit inspection or copying, or otherwise disclose the information contained on the list.
(j) Impounding of lists.

On motion of a party in interest and for cause shown the court may direct the impounding of the lists filed under this rule, and may refuse to permit inspection by any entity. The court may permit inspection or use of the lists, however, by any party in interest on terms prescribed by the court.
(k) Preparation of list, schedules, or statements on default of debtor.

If a list, schedule, or statement, other than a statement of intention, is not prepared and filed as required by this rule, the court may order the trustee, a petitioning creditor, committee, or other party to prepare and file any of these papers within a time fixed by the court. The court may approve reimbursement of the cost incurred in complying with such an order as an administrative expense.
(l) Transmission to United States trustee.

The clerk shall forthwith transmit to the United States trustee a copy of every list, schedule, and statement filed pursuant to subdivision (a)(1), (a)(2), (b), (d), or (h) of this rule.
(m) Infants and Incompetent Persons.

If the debtor knows that a person on the list of creditors or schedules is an infant or incompetent person, the debtor also shall include the name, address, and legal relationship of any person upon whom process would be served in an adversary proceeding against the infant or incompetent person in accordance with Rule 7004(b)(2).

[tobee43]

(3) Unless the United States trustee has determined that the credit counseling requirement of § 109(h) does not apply in the district, an individual debtor must file a statement of compliance with the credit counseling requirement, prepared as prescribed by the appropriate Official Form which must include one of the following:

(A) an attached certificate and debt repayment plan, if any, required by § 521(b);

(B) a statement that the debtor has received the credit counseling briefing required by § 109(h)(1) but does not have the certificate required by § 521(b);

(C) a certification under § 109(h)(3); or

(D) a request for a determination by the court under § 109(h)(4).

(4) Unless § 707(b)(2)(D) applies, an individual debtor in a chapter 7 case shall file a statement of current monthly income prepared as prescribed by the appropriate Official Form, and, if the current monthly income exceeds the median family income for the applicable state and household size, the information, including calculations, required by § 707(b), prepared as prescribed by the appropriate Official Form.

too much watermelon juice for me last night...or am i missing the 60 days...under 1007???...and accordingly... the trustee may even determine it is not needed in that particular district.....i'm certain if applicable...

[debee]

i don't know about that.....

2. A Chapter 7 debtor will have longer to file a statement of completion of their required course in personal financial management.

i'm not making up the procedures just quoting them....i'm not seeing anything about 60 days....in #2...but i'm checking out the website you listed now......

Yes, the article is incomplete.

Federal Rules of Bankruptcy Procedure 1007 (c) states: "In a chapter 7 case, the debtor shall file the statement required by subdivision (b)(7) within 60 days after the first date set for the meeting of creditors under § 341 of the Code..."

edit: HNY2U2

edit #2: You are not quoting the procedures. You're quoting an article that summarizes them, poorly.

[debee]

too much watermelon juice for me last night...

So many possible jokes - I can't choose just one!

[tobee43]

Yes, the article is incomplete.

Federal Rules of Bankruptcy Procedure 1007(c) states: "In a chapter 7 case, the debtor shall file the statement required by subdivision (b)(7) within 60 days after the first date set for the meeting of creditors under § 341 of the Code..."

edit: HNY2U2

that's why i have the entire 1007...out there.....in full.....

[tobee43]

Understatement.

no ...it's that new dole drink...watermelon juice...apple and white grape...ROFL!!!!!! and really NO GREY GOOSE...promise....

[tobee43]

So many possible jokes - I can't choose just one!

i want TWO!!!!! and i left it WIDE open for you!!!

[debee]

that's why i have the entire 1007...out there.....in full.....

I don't know what you're trying to say. You can't find it?


Edit: Look for the lowercase c. It comes after the lowercase a & b. It says "Time Limits" next to it.