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Legal Issues


Changes In Procedures In Chapter 13 Bankruptcy Cases for Residential Mortgage Lenders - November 10, 2011

Below are the new Bankruptcy rules for Chapter 13 cases for residential mortgage lenders. The rules are effective December 1, 2011.

New Rule 3002.1 (b) - Lender must serve on the Debtor, counsel for Debtor, and
the Chapter 13 Trustee notice of payment change 21 days or more before the payment
change takes effect. Official Form B10 (Supplement 1) has been published for use in
providing this notice of payment change.

New Rule 3002.1 (e) - Lender must file and serve on Debtor, counsel for Debtor,
and the Chapter 13 Trustee an itemization of all fees, expenses or charges incurred
post petition. The itemization must be filed no later than 180 days after the charge is
incurred. Official Form B10 (Supplement 2) has been published for use in providing this
itemization.

New Rule 3002.1 (f), (9) - After all payments have been made by the Debtor to
the Trustee, the Trustee is to serve on the Residential Mortgage Lender a notice stating
that the Debtor has paid the full amount of the mortgage arrearage claim. The Lender
has 21 days after service of the Trustee's notice to file and serve on Debtor, counsel for
Debtor, and the Chapter 13 Trustee a statement of agreement or disagreement that the
residential mortgage loan has been brought current.

New Rule 3001 (e)(2)(B) - In addition to requiring the Note and Mortgage be
attached to the Claim, the Residential Mortgage Lender must now itemize the mortgage
arrears on Official Form B10 (Attachment A).

Questions concerning these rules, or use of the new Official Forms, may be addressed to Mark D. Walz, 4201 Westown Parkway, Suite 300, West Des Moines, IA 50266, by phone 515-246-7898, or by e-mail to markwalz@davisbrownlaw.com.