Amendments To The Federal Bankruptcy Rules, Plus A New “Free And Cle...

11/19/13

Almost every year, changes are made to the set of rules that govern how bankruptcy cases are managed — the Federal Rules of Bankruptcy Procedure. The changes address issues identified by an Advisory Committee made up of federal judges, bankruptcy attorneys, and others.

Rule Amendments. This year the rule amendments mainly affect bankruptcy cases filed by individuals. There are also some revisions to Rules 9006, 9013, and 9014, which govern motions in individual and business bankruptcy cases, but they are minor and not too exciting this time. So you can keep up-to-date, a copy of the amendments, in both clean and redline, is available by following the link in this sentence. The new amendments will take effect on December 1, 2013, barring unlikely action by Congress.

"Free And Clear" Motion Filing Fee. Also taking effect on December 1, 2013, is a new, $176 filing fee each time a motion is filed under Section 363(f) of the Bankruptcy Code to sell assets "free and clear" of liens, interests and other encumbrances. Given the frequent use of Section 363 asset sales in Chapter 11 bankruptcy cases, this new fee may well generate some much needed revenue for the courts.

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