13 May Massachusetts Bankruptcy Court Issues New Standing Orders
The Massachusetts Bankruptcy Court recently issued three new standing orders.
- The first order allows limited (un-bundled) representation of debtors in pro bono bankruptcy case.
- The second requires that stipulated provisions which could lead to automatic dismissal or relief from the automatic stay be set forth conspicuously, in bold, uppercase type.
- The third allows secured creditor to send regular monthly statements to debtors in bankruptcy, and it allows creditors to directly contact debtors to discuss loan modifications with the written permission by the debtor’s bankruptcy attorney.
The third standing order is particularly significant because mortgage servicers have new latitude in negotiating workouts and modifications. Usually, the only way to make a deal financially feasible is for the debtor to negotiate directly with the mortgage servicers. This is what the order commendably anticipates and allows.
Nicholas Ortiz, Boston Bankruptcy Attorney
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