Monday, June 18, 2018
Bankruptcy Rules and Committee Requests »The Advisory Committee on Bankruptcy Rules is looking for feedback from the public as to whether the current Bankruptcy Rules should undergo a restyling process as the Federal Rules are doing so.
The purpose of restyling is to make the rules more simplified and understandable however bankruptcy rules have some words and phrases that are unique to bankruptcy and if changed could have unintended consequences if questions of interpretation of the restyled language is raised. In the meantime, Chief Justice John Roberts recently sent Congress amendments to the Federal Rules of Bankruptcy Procedure.
Several Rules amendments reflect a requirement that all parties represented by counsel must file electronically, thus requiring Rules that limited filings to page numbers be amended to limit by length or word count to accommodate the electronic filing requirement.
Rule 3002.1 was amended to regulate notices that must be filed by secured lenders with borrowers in Chapter 13 when a payment owed to the lender changes.
Rule 7062 was amended to clarify that in bankruptcy matters, judgments are automatically stayed for 14 days as opposed to 30 as provided in the Federal Rules of Civil Procedure.
Rule 8002 has been amended to clarify timing to file an appeal as well as setting requirements for an appeal by an incarcerated appellant.
Several Rules were also amended to now call for providing a “bond or other security” rather than the requirement to provide a “supersedeas bond” to conform with new changes to the F.R.C.P. 62.
One new Rule is Rule 8018.1 was drafted to address what to do if a district court determines on an appeal that the bankruptcy court lacked Article III authority to enter judgment, order or decree. Unless Congress intervenes with new law, these amendments will go in to effect on December 1, 2018 and apply to all new cases and some pending cases “insofar as just and practicable” as ordered by the Supreme Court.