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Amendments to Bankruptcy Rules Effective December 1, 2016

Wednesday, October 12, 2016

The United States Supreme Court submitted ten rule changes and one new rule to Congress April 28, 2016.  The effective date of these rules is December 1, 2016. 

  • International Bankruptcy Cases.  Rule 1010(a) and Rule 1011(a) and (f) were amended to remove Chapter 15 international bankruptcy cases provisions.  Rule 1012 Responsive Pleading in Cross-Border Cases was adopted to govern responses in international bankruptcy cases.  Rule 2002(q) was amended to clarify notice procedures in cross-border cases.
     
  • Rule 3002.1 was amended to clarify that Chapter 13 secured creditors with an interest in the debtor’s principal residence shall send notice to debtor and the trustee of any changes in the periodic payment, assessments or charges.  This notice requirement applies whether debtor is making ongoing mortgage payments, directly or through the trustee (with or without a prepetition default being cured).  The notice requirement ceases to apply when an order terminating stay on the principal residences becomes effective.
     
  • Rules 7008, 7012(b), 7016(a) and (b), 9027 and 9033 were amended to remove distinction between “core” and “non-core” matters.  Parties are required to state whether they consent to entry of final orders or judgment by the bankruptcy judge in all adversary proceedings, not just “non-core” matters.  These amendments provide that the court shall decide, on its own motion or a party’s motion whether to hear and determine the proceeding; to hear the proceeding and issue proposed findings of fact and conclusions of law; or to take some other action. 
     
  • Rule 9006(f) was amended to eliminate the three days to the period of response if service was by electronic service.

 
Three forms were also amended. 

  • Form 420A, (formerly 20A), and Form 420B, (formerly 20B), were renumbered and amended to change the phrase “mail” to “send”.
  • Form 410S2 was amended to add “[i]f the court has previously approved an amount, indicate that approval in parentheses after the date the amount was incurred.”

 
The amended rules submitted to Congress may be viewed here:
https://www.supremecourt.gov/orders/courtorders/frbk16_4h25.pdf
 
The amended forms may be viewed here:
http://www.uscourts.gov/rules-policies/pending-rules-amendments/pending-changes-bankruptcy-forms