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Amendments to FRBP Effective December 1, 2021

Wednesday, December 1, 2021

Proposed amendments to the federal Bankruptcy Rules that were transmitted to Congress on April 14, 2021 (see here), took effect on December 1, 2021. Here is a brief list the changes:

  • FRBP 2005(c): Makes a technical update acknowledging a change to provisions governing bail.
  • FRBP 3007(a)(2)(A)(ii): Clarifies that only depository institutions insured under the Federal Deposit Insurance Act must be served an objection to claim using the special service requirements of Rule 7004(h). Credit unions, which are insured by the National Credit Union Administration, may be served a claim objection by first-class mail sent to the person designated for receipt of notice on the proof of claim.
  • FRBP 7007.1: Updates the corporate ownership disclosure requirements for non-governmental corporations who are parties to adversary proceedings or seek to intervene.
  • FRBP 9036: The court and anyone else may serve documents electronically to anyone who consents to receive notice electronically.  
  • If the recipient is registered for electronic bankruptcy noticing service then the court can send notices to the registered electronic address through the Bankruptcy Noticing Center (BNC).  If the recipient is a high-volume paper recipient (i.e., receives more than 100 paper notices in a calendar month) the recipient must register for electronic noticing (using the eBN program). If a high-volume paper recipient does not timely register for electronic bankruptcy noticing then the AO can set up an electronic noticing address for the recipient and the court can send notices to that electronic noticing address, unless the recipient designated a noticing address under 11 U.S.C. § 342(e) or (f). The rule also explicitly states that it is the recipient’s responsibility to keep its electronic address current.  Rule 9036 does not relax the special service requirements of Rule 7004.
  • Official Form 122B: The initial instructions were modified.  Previously, the form instructed debtors to file a statement of current monthly income if they are individuals filing under Chapter 11.  The revised form added “(other than Subchapter V)” because there is no need for an individual debtor in a subchapter V case to file a statement of current monthly income.