Quick Guide to Procedural Changes Brought About by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

BANKRUPTCY REFORM ACT CHANGES

What follows is a brief description major changes in filing procedures resulting from the provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. It is provided as a guide, and is not intended as a comprehensive list of all changes in procedures rules and forms brought about by the implementation of the act.

                    B. Means Test–Presumption of Abuse § 707: Within 10 days of the filing of the petition, the Clerk’s Office must issue a Notice of Presumed Abuse if the Means Test documents and Petition indicate there is abuse.

                         1. In Ch. 7 Form B22a and Form B22alt; In Ch. 13 Form B22c and Form B22c alt; in Ch. 11 Form B22b  -or- Motion for Exemption From Means Test citing criteria under §707.

                         2. UST website at http://www.usdoj.gov/ust/ has information from the Census Bureau (median income), IRS and the Administrative Expenses Multiplier used to determine if debtor meets the means test criteria and in turn whether a presumption of abuse exists.

                      2. Applications to Pay the Filing Fee in Installments must also be made on the official form, and may now be made regardless of whether the attorney has received compensation for the case. See Official Form B3A.

                      3. Tax Related Documents § 521 (f): The tax documents to be filed with the Court are only such returns filed during the pendency of the action and produced upon the motion of an interested party. All such documents will be "private" documents that do not appear for viewing in ECF or PACER, and will be made available for viewing only in so far as directed by court order upon a motion for access filed after the filing of the return. Please see the Director’s Guidance on Filing Tax Returns.

                     4. Reaffirmation Agreements § 524: §524 requires specific language in reaffirmation agreements, as well as certifications by counsel, or motions for court approval by pro se litigants. Discharge is withheld pending resolution when court action is required. See new Official Form B240 at Forms link of website.

                     5. Automatic Stay/Intent to Cure Default/Deposit of Funds §362: §362 permits, in certain circumstances, the debtor to maintain stay as to leased property in which the lessor has a judgment. It requires the deposit of rent money with the clerk and notice to the lessor. The petition contains a check box for indicating the debtor’s intent to cure any default. Debtor must then file a Notice of Intent to Cure Default accompanied by the deposit into court of the appropriate funds in cash, certified check or money order. The money will be deposited in the clerk’s registry, notice sent to the lessor of the deposit, and depending on lessor’s response, the court will either set a hearing or direct the funds be sent to the lessor. A Standing Order and procedures will be forthcoming on the website.

                      6. Financial Management Training §§ 727 & 1328 : Is required prior to issuance of a discharge. See Official Form 23, and ECF event Financial Management Course, and the UST website for a list of approved financial management courses.

                    2. Certification of Appeals Directly to the Circuit Court of Appeals §158 : See Rules 8001 & 8003,Official Form 24.

BAPCPA

BANKRUPTCY REFORM ACT
NEW EVENTS LIST
as of 10/17/05