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PROPOSED AMENDMENTS TO LOCAL RULES AND FORMS AND COMMENT PERIOD ENDING JULY 15, 2017

Thursday, May 25, 2017

PROPOSED AMENDMENTS TO LOCAL RULES AND FORMS AND COMMENT PERIOD ENDING JULY 15, 2017
Come gather 'round people
Wherever you roam
And admit that the waters
Around you have grown
And accept it that soon
You'll be drenched to the bone.
If your time to you
Is worth savin'
Then you better start swimmin'
Or you'll sink like a stone
For the times they are a-changin'.

Bob Dylan – The Times They Are A-Changin’
 
The United States Supreme Court sent Congress proposed changes to the bankruptcy rules in late April that primarily address the new Official Form 113, “Chapter 13 Plan”.  The proponents of the national form chapter 13 plan believe it will promote consistency across jurisdictions and provide a broader base for court interpretations.  Each jurisdiction may adopt the national form plan or opt out if certain conditions are met.
 
The national form plan contains reorganization provisions that are not substantially different from current practice in the United States Bankruptcy Court for the Eastern District of Kentucky.  The primary difference is the manner of accomplishing the result.  Some examples include:

  • Adequate protection prior to confirmation is not covered by the plan, so a new form is required.
  • Avoidance of liens may occur through the plan.
  • Special payment options previously listed as special provisions are now addressed in the payment section.

 
The lack of substantive differences allows use of the national form plan, but there are a few local practices that remain beneficial.  Therefore, the Eastern District of Kentucky plans to opt out, with only a few minor deviations from the national form plan.  The proposed Local Form 3015-1(a) is provided as a clean draft and as a redline comparison to the national form plan.
 
The creation of a national form plan requires changes to the Federal Rules of Bankruptcy Procedure, which in turn necessitate amendments to the local rules of this Court.  The amendments also present an opportunity to make some housekeeping amendments to the federal and local rules.  Links are provided to the federal rules amendments.  The proposed changes to the local rules are presented as a redline comparison to the current version. 
 
The need to make changes and solicit comments also presented an opportunity to propose new local forms that are expected to facilitate recurring motion practice.  The new forms address automobile debt and lien issues.
 
KYEB solicits your comments to the proposed rule and form additions and amendments.  If you believe a change is beneficial, please suggest alternate language or a different procedure.  The deadline for submitting comments is July 15, 2017.  The new rules and forms will take effect December 1, 2017, so time is of the essence.