Busy with Bankruptcy Searches? You will be after December Rule Change

In any bankruptcy case, a secured creditor can file a proof of claim in an attempt to collect on a debt. Whether the creditor is a bank, leasing company, finance company, they may or may not be able to collect on their debt. Secured creditors currently have at least 3 months to file a proof of claim.

But that is going to change on December 1, 2017.

In addition to other amended forms, an amendment to Rule 3002(c) will reduce the number of days after the order for relief in which a secured creditor must file a proof of claim to 70 days —  just over 2 months.

With less time to file, many financial institutions stand to lose out on debts if they do not increase their volume and frequency of their borrower bankruptcy searches.

Need for More Bankruptcy Searches, More Frequently

This amendment will complicate things significantly for financial institutions that run bankruptcy searches for their borrowers on a monthly basis. In a worse case scenario, an institution could only have just over 30 days to prepare and file a proof of claim.

The most obvious result of this change will be an increased demand for bankruptcy searches, as financial institutions that fail to file their proof of claim will lose out to other creditors and lienholders.

This amendment applies a voluntary Chapter 7, 12 or 13 cases, and certain exceptions apply. A link at the bottom of this page will take you to the actual amendments published by the Judicial Conference.

AADS is Your Partner for Economic, High-Volume Bankruptcy Searches

All American Document Services is a trusted partner to secured creditors, providing rapid and accurate Bankruptcy Searches and superior customer service. Our employees have worked in several different bankruptcy clerk’s offices and are experienced with the nuances of numerous search systems. We can obtain bankruptcy records quickly and provide them in the format you require.

Visit our homepage to place your order.

Check out the Pending Changes in the Bankruptcy Forms in their entirety here: http://www.uscourts.gov/rules-policies/pending-rules-and-forms-amendments/pending-changes-bankruptcy-forms