The Bankruptcy Rules Advisory Committee is currently reviewing public comments on proposed changes to the Bankruptcy Rules concerning Ch. 13 mortgage claims. These proposed changes are in response to reported assessments of undisclosed fees and expenses by mortgage creditors on mortgagor accounts, despite the successful completion of Chapter 13 plans to cure mortgage defaults. Such reported assessments have included undisclosed servicer fees and expenses charged during the Chapter 13 case, postpetition charges based on escrow account and interest rate adjustments never disclosed in payment change notices, and prepetition default fees not included on the creditor’s proof of claim. Debtor counsel have responded by filing motions to deem current just prior to discharge, sending qualified written requests during the case, and by filing claims objections. Some bankruptcy courts have responded with standing orders and local rules compelling fee disclosure.
Rule 3001(c) would now require additional supporting information for proofs of claim, including an itemized statement of interest, fees and expenses included in the claim amount, and a statement of the amount necessary to cure any default on the account. A new proposed Rule 3002.1(a) and (b) would require that payment changes on mortgage accounts due to interest rate and escrow account adjustments must be sent no later than 30 days before the new payment is due. A new Rule 3002.1(c) would require mortgage creditors to provide a notice itemizing all fees that the creditor asserts are recoverable against the debtor or the debtor's property within 180 days after the fees are incurred on the account. New Rule 3002.1 would also require mortgage creditors to file a statement at the end of the case as to whether the debtor has cured the default and is otherwise current. The new Rules and changes to existing Rules also include a hearing procedure for the court to resolve disputes on whether fees are required by the underlying agreement and applicable nonbankruptcy law. If the creditor fails to provide the required information, proposed Rule 3001(c)(2)(D) and the new Rule 3002.1(g) would preclude the creditor from presenting the omitted information, in any form, as evidence in any hearing or submission in any contested matter or adversary proceeding in the case, unless the court determines that the failure was substantially justified or is harmless.
Read more about the proposed changes on the U.S. Courts' website.
In its 18th year, ABI's Bankruptcy Battleground West continues the tradition of bringing seasoned insolvency professionals together to discuss, debate and learn about leading issues of bankruptcy law. This year's program, "The Perfect Storm: Navigating the Latest Wave of Insolvency," will be held at the Hyatt Regency Century Plaza in Los Angeles on March 5, 2010. It will address some of the most intriguing issues that have emerged during the latest insolvency cycle, including the conflicts between intellectual property and bankruptcy law, challenges to the structure of insolvent real estate enterprises, the increased use of prepackaged and prenegotiated plans as a restructuring strategy, and the re-emergence of litigation challenging lenders, their claims and their reorganization strategies.
The program will again include a courtroom-style debate featuring several of the leading practitioners in the field, and a look into both the past and future of the current recession by a renowned economist from the UCLA Anderson Forecast. This is one bankruptcy program you will not want to miss! Register today!
The tagline "Washington, D.C. As You've Never Seen It Before" couldn't be more true than at this year's Annual Spring Meeting at the Gaylord National Resort and Convention Center April 29 - May 2, 2010. Nestled in a harbor on the banks of the Potomac with views of our Nation's Capitol, this hotel offers the best in the meetings industry with high-end guest rooms and fine and casual dining, unique retail shops, a 20,000-square-foot spa and fitness center, and a two-story rooftop nightclub. National Harbor finally brings together what our Founding Fathers hoped D.C. would be: a town bustling with river traffic, utilizing all that historic Maryland, Virginia and Washington, D.C., have to offer.
Our VP of Education, Jim Markus, has assembled a roster of the best national speakers, and the depth and scope of the topics offer something for everyone. A special focus is on the tough policy choices facing the administration and Congress. Specifically, four concurrent workshops will cover various "tracks," including programs for attorneys in large and small commercial cases, a track for restructuring professionals and a track dealing solely with consumer issues. We offer more than 16 hours of CLE in some states and ethics totaling 3 hours. In addition, 19 committee sessions will drill down on topics covered in the larger sessions to provide you with the most practical and varied CLE experience ever.
Optional events range from a first-time golf tournament at National Golf Club at Tantallon, an Orioles vs. Red Sox game at Camden Yards and the always-popular musical troupe, The Capitol Steps. Plenty of networking events, including the Opening Reception, Friday Luncheon with keynote by award-winning journalist Stuart Varney, the IWIRC Luncheon and Founders Awards and the Women's Networking Reception, will provide you with the opportunity to reconnect with colleagues and meet many more! Finally, bring your best dancing shoes and enjoy our Final Night Dinner, headlined by K.C. & The Sunshine Band and supported by nationally recognized law firms. See you there!
Please send articles for future publication to Newsletter Editor Jon Lieberman of Atkinson, Simms & Kermode PLLC at jjl@ask-law.com.
