The Federal Rules of Bankruptcy Procedure (“FRBP”) are the rules promulgated by the U.S. Supreme Court under the Rules Enabling Act, directing procedures in the U.S. Bankruptcy Courts. They are the bankruptcy law counterpart to the Federal Rules of Civil Procedure. The FRBP are amended every year. This year the U.S. Supreme Court will adopt only four amendments to the FRBP. This year’s amendments are minor. The following amendments will take effect on December 1, 2021:
- Rule 2005, addressing release conditions for a debtor taken into custody, was amended to refer to the correct section of Title 18.
- Rule 3007, governing service of claim objections, was amended to make clear that an insured depository institution, now identified only as one “defined in section 3 of the Federal Deposit Insurance Act,” also must be served pursuant to Rule 7004(h) and its more rigorous service requirements (including certified mail in some situations). Although a minor change, it’s a good reminder of the special service rules that apply to FDIC insured depository institutions. The Committee Note clarifies that this provision does not apply to credit unions because they’re covered by National Credit Union Administration insurance instead of FDIC insurance.
- Rule 7007.1, involving corporate ownership disclosures, was amended to align with similar disclosure rules in the Federal Rules of Appellate Procedure and the Federal Rules of Civil Procedure. It has been revised to apply only to nongovernmental corporations, although including when such corporations intervene in bankruptcy cases and adversary proceedings.
- Rule 9036, governing notice, and service was amended to address high-volume paper-notice recipients and to specify procedures for such recipients related to the Bankruptcy Noticing Center (BNC).[1]
***The Bankruptcy Code and Rules can be difficult to navigate. If you need assistance understanding how to safely proceed in Bankruptcy Court or out-of-court workouts, contact the experienced litigation attorneys at Goosmann Law in our Sioux City, Sioux Falls, and Omaha offices.
[1] Eisenbach, Bob. Amendments To The Federal Rules Of Bankruptcy Procedure Take Effect December 1, 2021. IN THE RED. Cooley LLP, 2 November 2021, https://bankruptcy.cooley.com/2021/11/articles/business-bankruptcy-issues/amendments-to-the-federal-rules-of-bankruptcy-procedure-take-effect-december-1-2021/.