Procedural rules applicable to bankruptcy proceedings were recently authorized by the United States Supreme Court. The new rules are set to take effect on December 1, 2017.
Among the changes is a standardized Chapter 13 plan that would include a paragraph requiring the debtor to highlight provisions that limit a secured creditor’s claim to the value of its collateral, provisions that seek to avoid a lien on the debtor’s real or personal property, or non-standard plan provisions.
The new rules also require the debtor to provide creditors with 21 days’ notice of the deadline for objecting to a Chapter 13 plan. Creditors must file their proofs of claim within 70 days after the bankruptcy petition filing date.