In 2005 the bankruptcy law was revamped to its current form. Periodically, the rules that govern bankruptcy are reviewed and tweaked. On December 1, 2011, some of those tweaks took effect. In chapter 7 and chapter 13 cases, creditors will feel the greatest effect with the new changes.

Creditors filing proofs of claim in bankruptcy cases will not be required to file documentation to support the amounts they are claiming, as opposed to a simple summary. Creditors must include all charges that are included in the claim. Creditors who hold a security interest (like a mortgage) must disclose the amount of any default at the time of filing. Mortgage creditors must also attach documentation proving the security interest and an escrow statement if an escrow account exists on the property.

Mortgage creditors will also be required to file with the Court any changes in mortgage payments, regardless of the reason. They must also serve on a debtor an itemized statement of any post-petition charges, including late fees, NSF charges or attorney fees. Along with the new requirements for mortgage creditors, the trustee in a chapter 13 case must file a notice of the final cure payment being made to a mortgage lender. The mortgage lender then has 21 days to dispute that notice.

If you have any questions regarding these changes and how it may affect your bankruptcy case, please don’t hesitate to contact us. We always look forward to helping in any way we can.