[1]Most chapter 7 clients are looking for the quickest and easiest way to discharge their debts, retain or protect their assets and move on with their lives. Difficulties in achieving these results can arise when assets are disclosed or discovered after the bankruptcy filing. This will usually result in negative consequences for the debtor and will frequently prolong their case.
Theoretically, an individual bankruptcy debtor may amend property claimed as exempt on his or her Schedule C at any time until the close of the bankruptcy proceeding.[1] The debtor must give notice of the amendment to the trustee and to “any entity affected thereby,” which is usually all creditors.[2] Under 11 U.S.C. § 522(l), a party in interest may object to the debtor’s list of exempt property:
Following a nearly-three-year study, on Dec. 8, 2014, the ABI Commission to Study the Reform of Chapter 11 published a 400-page report containing recommendation and principles for policymakers. This article focuses on chapter 11 reform relating to professional retention and compensation.
Editor's Note: David Morris is the senior deputy prosecuting attorney for the Marion County Prosecutor’s Office Child Support Division and an adjunct professor at the Indiana University Robert H. McKinney School of Law.
Hon. Sheri Bluebond sits as chief judge on the U.S. Bankruptcy Court, Central District of California. She is a dynamic figure at most bar events and is revered by colleagues, attorneys and trustees. For example, she recently presented an award at the home of James T. King, a beloved leader of the bankruptcy community, who became bedridden while battling cancer.
Most debtors that are contemplating chapter 7 are on the brink of economic disaster. They have creditors harassing them, calling them nonstop, garnishing wages and income tax returns, and seizing their vehicles to satisfy judgments. These hardworking individuals simply do not have the extra funds to pay a bankruptcy attorney up front in full to file a bankruptcy case to stop the creditors.
A single bankruptcy court may handle hundreds of chapter 13 cases filed each week, and their orderly disposition depends on the finality of confirmed plans.[1] Nevertheless, Congress was aware that chapter 13 debtors frequently encounter turmoil and, less frequently, windfalls in their financial circumstances, rendering modifications of confirmed plans appropriate.
Editor's Note: David Morris is the Senior Deputy Prosecuting Attorney for the Marion County Prosecutor’s Office Child Support Division and an adjunct professor at Indiana University’s Robert H. McKinney School of Law.
Proposed revisions to the Federal Rules of Bankruptcy Procedure and Official Forms are now published for comment. The proposed revisions affect Rules 2002, 3002, 3007, 3012, 4003, 5009, 7001 and 9009. Most of the changes affect practice in chapter 13 cases.