New Rules Keeping Up With BAPCPA
By Andy Miofsky, Illinois Bankruptcy Attorney on Oct 17, 2007 in Bankruptcy Practice and Procedure, Chapter 7 Bankruptcy, General Bankruptcy Information, Illinois
The federal rules of practice and procedure govern the conduct of a case in federal court. Congress has authorized the federal judiciary to draft proposed rules subject to congressional oversight. The Judicial Conference of the United States has organized the rulemaking process into a Standing Committee and five advisory committees. The process is time-consuming and transparent, with open meetings, recorded hearings and periods of public comment.
The Judicial Conference submits recommendations to the Supreme Court of the United States of America. In order to consider passage of new amendments, the Supreme Court must pass its proposals on to Congress by May 1 of the year in which the new rules are scheduled to take effect. Congress then has 7 months to pass, reject, modify, or defer action. If no action is taken, new rules take effect on December 1 of the same year.
A number of rule amendments are presently under consideration, two of which directly relate to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. These amendments take shape in an amended Form 8 and a new Form 27, both dealing with the reaffirmation of debts in chapter 7 bankruptcy cases.
Form 8 is the Debtor’s Statement of Intentions regarding treatment of property. This amended document informs the trustee and creditors whether debtor claims an exemption in property and whether debtor intends to surrender or keep the property. A new change involves inclusion of leased property on the document.
Form 27 is a new cover sheet that itemizes the information a Court reviews when considering whether to approve a reaffirmation agreement. The form culls pertinent financial details from the body of the reaffirmation agreement, including the reaffirmed debt, the amount of debt, the terms of repayment, and the personal financial ability of the debtor to perform the agreement, bringing the information front and center for all eyes.
You can submit comments on the proposed rules, including the new bankruptcy forms and form amendments, through February 15, 2008 by visiting the US Courts website. You may also read comments submitted from others at that internet address.
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