IL for www.theindianalawyer.com
New rules and procedures for individuals filing for bankruptcy under Chapter 13, and creditors certain bankruptcy cases will have less time to file proof of claims, federal courts announced.
Chapter 13 filers must use a new form that presents their payment plan in a more uniform and transparent manner. Creditors now will have less time to submit a proof of claim under the changes.
The new national Chapter 13 plan form will make it easier for creditors, lawyers and judges to ensure that all elements of a bankruptcy agreement reached under Chapter 13 comply with federal laws, the courts said. Chapter 13, sometimes known as the wage earner’s plan, enables qualified individual filers to reschedule and make debt payments, allowing them to keep their homes and other property.
Bankruptcy now must either use new national Bankruptcy Form 113, or create a locally adapted form that contains key elements of the national form. In recent months, courts have been updating electronic filing systems and notifying local bankruptcy lawyers and filers of the pending changes. Bankruptcy courts previously relied on local versions of Chapter 13 plans, which varied from district to district.