The Court has formed a working group to consider issues related to the treatment and collection of mortgage debt in bankruptcy cases in order to consider improvements in its procedures, rules or forms, especially in light of experience under the Reform Act. The members are:
Some of the issues to be discussed include the following:
1. Resolution of payment disputes and changes to the certification of facts form;
2. Time limit for the defaulting of 362 settlement orders. It has been suggested that defaulting a debtor and seeking ex parte stay relief may not be appropriate if debtor has consistently performed under the order for several years;
3. Harbin order: Is Local Rule language sufficient to ensure that excess proceeds are returned for the benefit of creditors?;
4. Assertions by creditor of default or claim for charges that accrued post confirmation after debtor has performed under the plan and received discharge in chapter 13 case, including issues related to section 524(i);
5. Reinstatement of stay grounds and frequency, attorneys fees for creditor error;
6. Reaffirmation Agreement Procedures;
7. Adversary Proceedings to Set Claims and deny charges ( see for example adv. 07-80093), also adversaries to declare debt current after completion of plan.
If you have suggestions or issues for discussion in this area, please contact any member of the working group.
The group has been asked to complete its recommendations within the next several weeks.