New bankruptcy rules shorten proofs of claim time period

People filing for bankruptcy in Florida will have some new rules to navigate. One of the changes to the Federal Rules of Bankruptcy Procedure that recently came into effect reduces the time table for proofs of claim. Previously, secured creditors had 90 days to file their documentation regarding debts, but Amended Rule 3002(c) has shortened the window to 70 days after the first date is scheduled for the meeting of creditors. This applies to Chapters 7, 12 and 13 bankruptcies.

The shorter time period could benefit Chapter 13 cases. The president of the American Bankruptcy Institute explained that debtors could gain information that allows them to make decisions regarding the protection of certain assets. The speedup for proofs of claim could help debtors create a payment plan that a court can approve.

Changes to standard forms will also require scrutiny by filers. In an effort to standardize forms across the nation, nine official forms have been updated. Additionally, a new version of the Chapter 13 plan form has been issued. Regional courts, however, retain the option to adopt nonstandard forms.

Someone filing for protection under Chapter 13 will need to confirm which forms should be used within the region of residence. a lawyer may be able to inform the client about the process and timeline for filing a bankruptcy. Legal advice may allow a person to understand which assets might be protected from creditors and how the bankruptcy could influence a credit rating long term. Guidance from a lawyer may include organization of financial records and preparation of court forms. a lawyer may strive to make sure that an individual accurately discloses all financial information so as to avoid court delays or disapproval.