Member Alert
October 28, 2009

PROPOSED BANKRUPTCY RULE CHANGE

The Advisory Committee on the Federal Bankruptcy Rules has proposed changes to Rule 3001. Proof of Claim as to the documentation requirement for proofs of claim in Bankruptcy cases.

The new rules, if approved, would require that a proof of claim be accompanied by the “last statement sent to the debtor”, and “If, in addition to its principal amount, a claim includes interest, fees, expenses, or other charges incurred before the petition was filed, an itemized statement of the interest, fees, expenses, or charges shall be filed with the proof of claim.”

The proposed rules have the potential to change the way debt purchasers view bankrupt debt as a potential asset.

Interested parties may submit Comments on line directly to the Rules Committee at http://www.uscourts.gov/rules/newrules1.htm. The Comment period will close on February 16, 2010.

This Alert is in no way intended to be legal advice and members are encouraged to consult with counsel of their choice.