New Bankruptcy Law Amendments

Amendments to the Federal Rules of Bankruptcy Procedure, Including New Forms for Bankruptcy Petition, Schedules, Etc., which take effect on December 1, 2007:

The United States Bankruptcy Code (11 USC 101 et seq) is the substantive law for bankruptcy, and says what rights and duties debtors, creditors, trustees, and other parties in interest have in bankruptcy cases. However, the procedures in Bankruptcy Court are set forth by the Federal Rules of Bankruptcy Procedure. On December 1, 2007, important amendments to the Federal Rules of Bankruptcy Procedure go into effect. Here is a summary of the amendments, and how those amendments affect every individual, corporation and partnership that files bankruptcy on or after December 1, 2007:

The Most important change to the Federal Rules of Bankruptcy Procedure is new Official Bankruptcy Forms, nationwide: Since the new bankruptcy law (BAPCPA 2005) took effect on 10/17/05, the forms for bankruptcy petitions, schedules, statement of financial affair, etc. have been interim forms. As of 12/1/07, these interim forms will be replaced by new Official Bankruptcy Forms that will be required to be used for bankruptcy petitions, bankruptcy schedules, bankruptcy Statements of Financial Affairs, bankruptcy "means test", Chapter 13 plans, plus all other forms required to be filed to constitute a complete bankruptcy filing in Chapter 7, Chapter 11 or Chapter 13. There are over 25 forms that must be filled out and filed with the Bankruptcy Court to make a complete bankruptcy filing in Chapter 7, Chapter 11 or Chapter 13 bankruptcy. If any of the required forms is not filed, the Bankruptcy Court issues a "deficiency notice" stating the Court will or may dismiss the bankruptcy case as a "deficiency filing", unless the deficiency is fixed within 15 days after the bankruptcy case is filed, by filing all the required forms. From December 1, 2007 onward, Bankruptcy Courts will not accept the old interim forms (the forms that have been in use from 10/17/05 through 11/30/07 for filing. From 12/1/07 onward, Bankruptcy Courts nationwide will only accept bankruptcy cases for filing if those cases are filed on the NEW official forms. The Bankruptcy Law Firm, PC will be using the new Official Bankruptcy Forms for all bankruptcy cases The Bankruptcy Law Firm, PC files for our clients filing bankruptcy from December 1, 2007 onward.

• Interim Rule 1007 (Lists, Schedules, Statements, and Other Documents; Time Limits) requires debtor to file Official Form stating compliance with prepetition credit counseling requirement.
• Rule 1014 (Dismissal and Change of Venue) allows a court to initiate a change of venue on its own motion after giving notice and an opportunity to be heard.
• Rule 3007 (Objections to Claims) places restrictions on, and provides procedures for, omnibus objections to claims.
• Rule 4001 (Relief from Automatic Stay; Prohibiting or Conditioning the Use, Sale, or Lease of Property; Use of Cash Collateral; Obtaining Credit; Agreements) requires a moving party provide more extensive notice and a summary of the relief requested when seeking authority to use cash collateral, obtaining debtor-in-possession financing, or approval of related agreements.
• Rule 6003 (Interim and Final Relief Immediately Following the Commencement of the Case—Applications for Employment; Motions for Use, Sale, or Lease of Property; and Motions for Assumption, Assignments, and Rejections of Executory Contracts) limits the type of motion and relief that can be granted during the first 20 days of a case.
• Rule 6006 (Assumption, Rejection or Assignment of an Executory Contract or Unexpired Lease) authorizes use of an omnibus motion to assume, assign, or reject up to 100 multiple executory contracts and unexpired leases in a single motion.
• Rule 7007.1 (Corporate Ownership Statement) clarifies that a party must file a corporate ownership statement with its initial paper filed with the court in an adversary proceeding.
• Rule 9005.1 (Constitutional Challenge to a Statute — Notice, Certification, and Intervention) applies pending Civil Rule 5.1—dealing with notification requirements involving constitutional challenges to a statute—to all proceedings in a bankruptcy case.
• Rule 9037 (Privacy Protection for Filings Made with the Court) addresses privacy and security concerns arising from electronic case filing.

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