Sunday, March 17, 2013

Changes are likely for CHAPTER 13

There are several significant proposed changes to the Chapter 13 plan, which could go into effect in 2014. The Advisory Committee on Bankruptcy Rules is expected to present a uniform Chapter 13 plan and submit it for comment in August 2013. The current version of this Model-Plan-and-Proposed-Rules-12-11-2012 consolidates several motions into the Chapter 13 confirmation process. For example, instead of holding the Debtor responsible for obtaining the correct claim amount pre-confirmation, the duty is shifted to the creditor to file its proof of claim within 60 days of the petition date. Thus, the proof of claim bar date would be decreased to 60 days from the petition, rather than 90 days from the first scheduled 341 meeting of the creditors. When considered with the 2010 amendments, these rules would appear to increase the burdens on mortgage servicers in Chapter 13 proceedings.
According to comments from the Chapter 13 Form Plan Working Group for the Advisory Committee, failure of a lender to file a timely proof of claim and participate in the confirmation process may waive both its claim in bankruptcy and its right to pursue the claim outside of bankruptcy. The plan and rules would be published for six months public comment in August 2013 and go into effect December 1, 2014, if approved at each stage of the rules making process.

Lets see what happens. If you are considering file for Bankruptcy, please contact RAXTER LAW - MENIFEE BANKRUPTCY ATTORNEY for more informaiton. The first consultation is free. Contact us at (951) 226-5294


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