Restructuring

Contributed by Kyle J. Ortiz

Twas the night before amendments, all attorneys at work,
not a lawyer was resting, not even a clerk.
The mini code sat upon the bookshelf with care,
in hopes that new rules would soon join it there.

I was nestled all snug in my office – quite far from my bed,
while visions of more time to review bills (under Rule 7054(b)) – danced in my head,
As the night waned I fought off the urge to nap,
searching in vain for section 704(8) in the code on my lap.

When out my office window arose such a clatter,
I sprang from my chair to see what was the matter.
And found individual debtors beginning to fret,
about new subsection 3001(c)(3) and their credit card debt.

Although the moon shown on the new fallen snow,
I turned back away from the scene at the window.
Focusing on work that had long been deferred,
wondering when my Rule 7056 motion would be heard.

When suddenly appeared attorneys both wise and pithy,
I knew it must be the Rules Committee.
More clever than eagles, new rules they had crafted,
now take heed and read what the committee has drafted:

Rule 1007. Lists, Schedules, Statements, and Other Documents; Time Limits
(c) TIME LIMITS. In a voluntary case, the schedules, statements, and other documents required by subdivision (b)(1), (4), (5), and (6) shall be filed with the petition or within 14 days thereafter, except as otherwise provided in subdivisions (d), (e), (f), and (h) of this rule. In an involuntary case, the list in subdivision (a)(2), and the schedules, statements, and other documents required by subdivision (b)(1) shall be filed by the debtor within 14 days after the entry of the order for relief. . . .
The above deletion is a conforming amendment to remove an inconsistency created by the December 1, 2010 amendment to Rule 1007(a).
Rule 2015. Duty to Keep Records, Make Reports, and Give Notice of Case or Change of Status
(a) TRUSTEE OR DEBTOR IN POSSESSION. A trustee or debtor in possession shall:

(3) file the reports and summaries required by § 704(a)(8) of the Code, which shall include a statement, if payments are made to employees, of the amounts of deductions for all taxes required to be withheld or paid for and in behalf of employees and the place where these amounts are deposited;

The above addition of (a) between 704 and (8) corrects an incorrect reference to section 704 of the Bankruptcy Code and fixes it so that Rule 2015 properly references section 704(a)(8) instead of the nonexistent section 704(8).
Rule 3001. Proof of Claim
(c) SUPPORTING INFORMATION.

(1) Claim Based on a Writing. Except for a claim governed by paragraph (3) of this subdivision, wWhen a claim, or an interest in property of the debtor securing the claim, is based on a writing, a copy of the writing shall be filed with the proof of claim. If the writing has been lost or destroyed, a statement of the circumstances of the loss or destruction shall be filed with the claim.

(3) Claim Based on an Open-End or Revolving Consumer Credit Agreement.

(A) When a claim is based on an open-end or revolving consumer credit agreement — except one for which a security interest is claimed in the debtor’s real property — a statement shall be filed with the proof of claim, including all of the following information that applies to the account:

(i) the name of the entity from whom the creditor purchased the account;

(ii) the name of the entity to whom the debt was owed at the time of an account holder’s last transaction on the account;

(iii) the date of an account holder’s last transaction;

(iv) the date of the last payment on the account; and

(v) the date on which the account was charged to profit and loss.

(B) On written request by a party in interest, the holder of a claim based on an open-end or revolving consumer credit agreement shall, within 30 days after the request is sent, provide the requesting party a copy of the writing specified in paragraph (1) of this subdivision.

The above amendment adds subsection (3) to Bankruptcy Rule 3001(c). Subsection (3) outlines the documents required when filing proofs of claim related to consumer credit card debt and other revolving consumer accounts.
Rule 7054. Judgments; Costs
(b) COSTS. The court may allow costs to the prevailing party except when a statute of the United States or these rules otherwise provides. Costs against the United States, its officers and agencies shall be imposed only to the extent permitted by law. Costs may be taxed by the clerk on 14 one days’ notice; on motion served within sevenfive days thereafter, the action of the clerk may be reviewed by the court.
The above amendment extends the time to review bills of cost to make it consistent with Federal Rule of Civil Procedure 54(a)-(c).
Rule 7056. Summary Judgment
Rule 56 F.R.Civ.P. applies in adversary proceedings, except that any motion for summary judgment must be made at least 30 days before the initial date set for an evidentiary hearing on any issue for which summary judgment is sought, unless a different time is set by local rule or the court orders otherwise.
The above amendment creates an exception to the general applicability of Rule 56 of the Federal Rules of Civil Procedure to Bankruptcy Rule 7056.

With their amended rules now decreed and effective,
the committee members could return to their chosen elective.
But I heard them exclaim before they had to jet
“Happy amended rules to all, and to all, stay out of debt!”