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Various Matters of Interest to the Bar:

Thu, 12/07/2006 - 4:00am

The Judges would like to alert the bar to several matters to assist in the administration of cases.

1. The United States Trustee has reported recently that several bankruptcy referrals have been prosecuted and resulted in indictments in this District:

On October 4, 2006, a debtor was indicted for allegedly using a false Social Security number to file bankruptcy.

On October 10, 2006, a debtor was indicted for allegedly keeping rent proceeds he collected from property of the estate while he was in bankruptcy. The rent proceeds were also property of the estate and should have been turned over to the bankruptcy trustee.

On October 10, 2006, an individual was indicted for forging a bankruptcy judge’s signature to a document in order to qualify for a loan on a used car.

On November 28, 2006, a debtor was indicted for concealing bank accounts and an insurance claim and for false statements he made at his meeting of creditors.

A bankruptcy judge recently referred to the U.S. Attorney testimony provided by a debtor in a hearing that he had failed to report income from his rental properties in his Tax Returns for the applicable years.

2. The Judges have agreed that whenever a motion for relief from the automatic stay represents that the movant agrees to waive certain claims or expenses provided under Sections 503(b) and 507 and to return to the estate any proceeds in excess of the liquidation of its secured claims, that such provisions should also be included in the proposed order/settlement order submitted to the Court if applicable to that order. The case trustees have agreed to monitor proposed orders for compliance with this requirement.

3. According to the recent ruling by the United States District Court in In re Singleton, C/A No: 02.06-CV-1666-PMD, a party seeking to have the Court reconsider dismissal in a case which has also been closed should file a motion to reconsider dismissal that meets the requirements of FRCP 60 and a motion to reopen. Merely requesting the reopening of the case may not provide the relief the movant seeks. Please consult the Court docket whenever taking such action to determine if the case has not only been dismissed, but also closed by the Court.

4. The official form required for filing in connection with a debtors completion of a financial education course before discharge has changed effective October 1, 2006. Debtors counsel should ensure the official form is executed by the debtor and completed (including the number of the educators certificate) and filed with a copy of the certificate. (Again this is a different requirement and form than the credit counseling certificate required at the beginning of a case.) The new official form can be found on the Court's Web Page under Forms.