Back
CLIENT ADVISORY - December 5, 2007
Changes To The Federal Rules of Bankruptcy Procedure
by: Laura R. Faulkner, Esq.
The Federal Rules of Bankruptcy Procedure were updated effective December 1, 2007, and there are two changes that specifically affect creditors.
The first change requires creditors to attach a copy of the writing that evidences the security interest to the proof of claim. However, no more than five pages may be attached to the proof of claim. If the writing exceeds five pages, such as a mortgage, then the creditor must attach a copy of the "relevant excerpts of the writing and a summary of the evidence of perfection". The relevant excerpts and summary must not exceed five pages. Upon request, the creditor must supply a complete copy of the writing.
Further, the official proof of claim form has been changed. The new proof of claim allows the creditor to provide two addresses: one for notices and one for payments. The new proof of claim form is effective December 1, 2007.
The second change concerns redacting, or editing, certain personal information on legal pleadings. Only the last four digits of social security numbers and financial account numbers may be displayed in any document filed with the court. Documentation that is attached to a pleading is considered part of that pleading. This means that account numbers listed on the underlying loan documents (such as the contract, the certificate of title, the mortgage, or any other document) must be blocked out, except for the last four digits, before being filed with the court. Further, the rule requires other personal information such as birth dates, and minors' names be removed from legal pleadings or attached documentation. Similarly, debtor telephone phone numbers should be removed. The amendment expands the already existing rule that social security numbers be truncated in legal pleadings and the local rule in the Northern District of Ohio.
This change will cause additional burdens to creditors, particularly in attempting to match information from the bankruptcy courts to the correct account. Weltman, Weinberg & Reis is committed to assisting clients in managing this extra burden through the use of its internal numbering system. The firm can utilize its existing system to match bankruptcy court pleadings with the client's financial account number. This allows us to communicate information with our clients without requiring them to try to search for an account with only the last four digits of the account number.
The Federal Rules of Bankruptcy Procedure are adopted in all courts, so these changes will affect creditors in every jurisdiction in which they file bankruptcy pleadings. Although they create additional burdens for creditors, the underlying goal is to protect debtors' sensitive financial information and identities.
If you have any questions on this information, please contact Ms. Laura R. Faulkner, Esq.
Laura is an associate in the Bankruptcy department of the Cincinnati office of Weltman, Weinberg & Reis Co., L.P.A. Laura can be reached at (513) 723-2210 or via e-mail at lfaulkner@weltman.com.
Client Advisory is published by Weltman, Weinberg & Reis Co., L.P.A., an organization providing comprehensive creditor representation. The information contained in this advisory is a summary of legal information and is not intended to constitute legal advice on specific matters or create an attorney-client relationship. Contact any of our offices or visit our website at www.weltman.com for more information, company facts and attorney profiles. (c)2007