Bankruptcy Update
The Advisory Committee for the Proposed National Chapter 13 Plan and Amended FRBP met on April 22, 2014. The Advisory Committee decided that the proposed Plan and Rules will be republished for comment prior to implementation which will be no earlier than December 1, 2016. However, implementation of the proposed changes to the model Proof of Claim attachment will still be December 1, 205. A detailed payment history and disclosure of the post-petition payment amount will need to be attached to the Proof of Claim. The revised Attachment A (410A) has not been published.
Judge Lorch, of the New Albany Division of the United States Bankruptcy Court for the Southern District, has recently issued an Order Establishing Loss Mitigation Program. The New Albany Division has joined other districts that use Default Mitigation Management, LLC (“the DMM Portal”). The Loss Mitigation Mediation Program requires Lenders to register with the DMM Portal. All loss mitigation communications between the borrowers and the lender are to be sent through the portal. The Lender has fourteen days to object to the debtor’s motion for mediation. Upon entry of the Order, any pending motion for relief are stayed until the conclusion of mediation. The mediation costs are to be paid by the debtor. The lender may participate with or without counsel. The Lender may be allowed a $300 administrative claim for retaining counsel to attend mediation. The mediation is conducted by telephone.
In the past, our office has not required a separate referral to file a Notice of Post-Petition Fees at the time of filing a Proof of Claim. Effective July 1, 2014, this procedure will change. Doyle Legal Corporation, P.C. will require a separate referral in order to file a Notice of Post-Petition Fees on Proof of Claims referrals. The fee for preparing and filing the Notice of Post-Petition Fees is $50, which said fees are not recoverable against the borrowers.