Written by Elissa Miller
Effective December 1, 2017, amendments to the Federal Rules of Bankruptcy Procedure went into effect. While many of the changes are geared primarily towards debtors in consumer cases, changes to Rule 3002 will materially affect creditors, both secured and unsecured, in a voluntary Chapter 7 (liquidation), 12 (farm) and 13 (personal reorganization) cases.
Rule 3002(a) and (c) have been significantly revised in the following respects:
(a) – All creditors, both secured and unsecured, will need to file a proof of claim or interest. Notwithstanding that secured creditors will have to file a proof of claim, the revision also state that “A lien that secures a claim against the debtor is not void due only to the failure of any entity to file a proof of claim.”
Previously, secured creditors were not required to file a claim.
(C) – To be timely filed in a voluntary Chapter 7, 12 or 13, a proof of claim must be filed not later than 70 days after the entry of the Order for Relief or the date of the Order of conversion to a case under Chapter 12 or 13 or 90 days from the date of entry of an order for relief in an involuntary case.
This is a significant change from prior law. Previously, the claims bar date was not later than 90 days after the date first set for the meeting of creditors pursuant to Bankruptcy Code Section 341a, or approximately 4-5 months after the case was filed. Under the revised rule, that time period is now shortened to 70 days from the date the bankruptcy was filed or approximately two and a half months. Note, however, that the revisions left intact the provision that if a case is determined to be a no-asset case, not less than 90 notice will be given of the bar date if it is later determined to be an asset case.
Note: these are the general rules – limited exceptions may apply.
Elissa Miller is a Member with SulmeyerKupetz. She can be reached at [email protected] or (213) 626-2311.