CURRENT NEWS

ANNOUNCEMENT - EMAIL LIST FOR LOCAL ATTORNEYS

D. Sims Crawford, Chapter 13 Standing Trustee, has created an email list to communicate with local attorneys. Through this list, the Trustee will provide updates and information about his policies and procedures, as well as general information about local Chapter 13 bankruptcy practice. To subscribe, please complete the attached form and submit it to the Trustee's office for review. In order to participate, an attorney must be admitted to practice before the U.S. District Court for the Northern District of Alabama. The provided link may also be used to unsubscribe to the email list.

CHANGE TO TRUSTEE'S 341 AND CONFIRMATION PREPARATION PROCESS

The changes to the Trustee's 341 and confirmation preparation process are discussed in the attached memo and will be effective beginning February 4, 2009. 
As of April 7, 2010, the second sentence of Section I.B. on Page 1 of the Trustee's Memo dated 2/4/09 shall read as follows:  "Attendance of the Debtor and the Debtor's attorney may be required for any continued meeting of creditors."  The Trustee's Memo shall otherwise remain in full force and effect.

ANNOUNCEMENT TO ATTORNEYS REGARDING THE TRUSTEE'S LOCKBOX AND PLAN PAYMENTS

Click here to view announcement.

TRUSTEE'S NOTICE OF TAX REFUND PROCEDURE

Effective February 3, 2010, D. Sims Crawford, Chapter 13 Standing Trustee, has implemented the following procedure regarding federal income tax refunds in certain Chapter 13 cases.  Please view the following link for more information.

TRUSTEE's NOTICE OF PROCEDURAL CHANGE FOR CASE ASSIGNED TO THE HONORABLE THOMAS B. BENNETT, U.S. BANKRUPTCY JUDGE

Please see the attached notice and form for cases assigned to Judge Bennett.  These changes will be effective in Chapter 13 cases (TBB) filed on or after February 1, 2010. Please contact the Trustee's office if you have any questions.

UNDERSTANDING THE TRUSTEE’S INTERIM STATEMENT WHEN THE DEBTOR FILES A “POT” PLAN FOR NONPRIORITY UNSECURED CREDITORS

An increasing number of Chapter 13 debtors in this Division are filing “Pot” plans, where the debtor proposes to pay a “pot” of funds to the Trustee, based upon the debtor’s disposable income, to be disbursed to creditors who file nonpriority unsecured claims.

The Trustee’s interim statement will indicate that the debtor has filed a “Pot” plan on the left side of Page 1 near the top, where it says “PERCENTAGE: POT PLAN.” 

In addition, the “APPROXIMATE BALANCE:” figure on Page 2 of the interim statement should not be used if the debtor has proposed a “Pot” plan.  All parties should instead refer to the “Needed To Complete” figure at the bottom of Page 2 of the Interim Statement to determine the amount needed to complete payment of the debtor’s “Pot” plan.  This only applies to “Pot” plans. The “APPROXIMATE BALANCE:” figure should still be used for all 100% plans and composition plans.

As a reminder, the Trustee must audit each Chapter 13 case before he can certify to the Bankruptcy Clerk that the plan has been completed by the Debtor.  In other words, the “Needed to Complete” figure in a “Pot” plan is subject to audit by the Trustee just as the “Approximate Balance” figure is subject to audit in a 100% plan or composition plan.

Please see the attached interim statement for more information.

The information provided in this paragraph also applies to "Base" plans, which are very similar to "Pot" plans. The Trustee's interim statement should be read the same way for these two types of Chapter 13 cases.

CHANGE TO TRUSTEE'S PERCENTAGE FEE

Beginning with the November 2009 distribution, the percentage fee collected by D. Sims Crawford, Chapter 13 Standing Trustee, will increase from 4.5% to 4.8% to defray the costs and expenses of his office.

CHANGE TO TRUSTEE'S BANKING PROCEDURE

Effective October 1, 2009, the Trustee's banking procedure will change as indicated in the attached Memo.  Please contact the Trustee's office if you have any questions.

TRUSTEE POLICY CHANGE REGARDING DEBTOR REQUESTS FOR PLAN PAYMENT REFUNDS

Effective October 1, 2007, all requests made to the Trustee for plan payment refunds must be submitted using this Form, which must be signed by the Debtor and the Debtor’s Attorney. No request over $500 will be considered. All supporting documents should be sent with the executed form. This procedure should be used only when an emergency situation has arisen that is causing severe financial difficulty for the Debtor or his/her family (maximum $500). Otherwise, the Trustee encourages Debtors and their Counsel to consider filing an appropriate motion with the Bankruptcy Court. For all Chapter 13 cases assigned to the Honorable Thomas B. Bennett, any request for a refund must be filed as a motion with the Court and Debtors should contact their attorneys for legal advice.

FEE FOR TRUSTEE’S MOTION TO CONVERT TO CHAPTER 7

The Chapter 13 Trustee sometimes files a motion to convert a case to Chapter 7, for which the bankruptcy estate of that case incurs a $25.00 fee. This fee is payable only from the assets of the bankruptcy estate that exist before the court enters a conversion order. When the Chapter 13 Trustee files such a motion, the interim statement for that case will reflect a claim payable to the U.S. Bankruptcy Clerk in the amount of $25.00 if the fee has been assessed by the Clerk.
For more information, see 28 U.S.C. § 1930, Bankruptcy Court Miscellaneous Fee Schedule (10), and the Bankruptcy Fee Compendium III, August 2007, as promulgated by the Judicial Conference of the United States, Part D.I.B.(1) and (6), pp.38-39.

SERVICE OF REQUIRED TAX RETURNS

When serving the Trustee with copies of tax returns pursuant to 11 U.S.C. § 521 or Fed. R. Bankr. Proc. 4002, the Trustee requests that properly redacted pdf's of the returns be emailed to documents@ch13bham.com. As a reminder, when the service of tax returns upon the Trustee is required, they must be served separately from any filing with the U.S. Bankruptcy Clerk since the Trustee does not have access to tax returns filed in the Clerk's CM/ECF system. The email as well as the attachment must include the case number, the debtor's last name, and the year of the tax return for proper and timely identification. Example: 0901234_debtor_08taxrtn.

CHANGE REGARDING CONVERSION REFUND CHECKS

In a case converted from Chapter 13 to Chapter 7, and after payment of any required fees and costs, the Chapter 13 Trustee issues a refund check (“Conversion Refund Check”) to the Chapter 7 Trustee for estate funds as required by FRBP 1019(4).
To minimize the time between the Chapter 13 Trustee’s final distribution and the filing of his final report, Conversion Refund Checks will be processed like any other distribution check beginning April 1, 2008. Any Conversion Refund Check remaining unpaid after 90 days from the date of the check will be canceled and paid to the Bankruptcy Clerk pursuant to 11 U.S.C. § 347(a).
The Chapter 13 Trustee encourages all parties to transact business regarding Conversion Refund Checks in a timely fashion, before funds are paid to the Clerk as stated above.

Effective February 1, 2008, the office of D. Sims Crawford, Chapter 13 Standing Trustee will file a Certificate of Plan Completion with the Bankruptcy Clerk after the final distribution to creditors has been made, and after the Chapter 13 case has been audited. Even if the debtor makes the final plan payment early in the month, the Trustee's Certificate will not be filed until after the next regular monthly distribution cycle, when the final disbursement to creditors is made and the case is audited.

Since April 2007, the Trustee's office has held all plan payments made by personal check for a period of 15 business days before their distribution to ensure that the funds were good. Beginning March 3, 2008, the Trustee's office will also begin holding plan payments made by employer check for a period of 15 business days to ensure that the funds are good. Beginning April 1, 2008, money orders and cashiers checks will be held for 10 business days to ensure that the funds are good. These changes will not affect plan payments made by attorney trust account check. This change could affect the timing of certain pre-confirmation adequate protection payments, depending upon the debtor's plan. As a reminder, if a debtor's personal check is returned for insufficient funds, the Trustee will assess a $10.00 returned check charge that will appear on the interim statement for the debtor's case.

Effective January 9, 2008, D. Sims Crawford, Chapter 13 Standing Trustee, is modifying his confirmation preparation process as it relates to cases assigned to the Honorable Thomas B. Bennett. In light of the notice requirements of Fed. R. Bankr. Proc. 2002, the Trustee requires that any and all amended plans, pleadings or other documents be filed at least two weeks (14 days) before the scheduled confirmation hearing.
Otherwise, the Trustee may object and require 25 days notice of the appropriate pleading as set out in FRBP 2002, request a continuance of the confirmation hearing, or request a reduction of the proposed attorney fees consistent with the Administrative Order on Compensation in Chapter 13 Cases No. 06-04, effective August 1, 2006.

Effective December 1, 2007, D. Sims Crawford, Chapter 13 Standing Trustee, will implement two administrative updates to the regular monthly distribution that are designed to be more efficient and more informative for parties receiving payments.

Previously, payments made for each closed (dismissed, discharged, or converted) Chapter 13 case were made by separate, individual distribution checks. To reduce the number of checks issued to a party, payments for closed Chapter 13 cases will be combined into a single check when possible. This update does not affect the amount of payments, only the method. This update does not apply to payments for open (active) Chapter 13 cases.

In addition, the remittance statement included with each distribution check has been updated. Information on the remittance statement has been reorganized and expanded to include, when applicable, a collateral description, as well as the unpaid balance of the principal and interest due on the proof of claim for which the payments are being made. This update does not affect the amount of payments, it only expands the information previously provided with each payment.

Pursuant to 11 U.S.C. Section 521(h) and Bankruptcy Rule 4002(b)(1)(A), every individual Debtor shall bring to the meeting of creditors a picture identification issued by a governmental unit, or other personal identifying information that establishes the debtor's identity. As announced earlier this year, the Chapter 13 Trustee will request proof of identification beginning with the February 7, 2007 creditor meeting docket.

For Chapter 13 cases assigned to the Honorable Thomas B. Bennett, U.S. Bankruptcy Judge, Debtors and Counsel may voluntarily elect to consider the attached Agreed Order Form concerning adequate protection payments pursuant to 11 U.S.C. § 1326. If the Debtor elects to utilize this form, a completed version must be forwarded to the Trustee's office for his written consent, and thereafter must be filed by the Debtor or Counsel with the Bankruptcy Clerk. Due to the time-sensitive nature of its terms, the Debtor and Counsel should complete the proposed agreed order, submit it to the Trustee for his written consent, and then file it with the Court immediately after the filing of the Debtor's bankruptcy petition. The Trustee's office will proceed pursuant to the terms of such an agreement only after it has been approved by the Court and entered as an Order on the Clerk's CM/ECF docket. The timing of monthly distributions is subject to the Trustee's policy and procedure regarding plan payments made by personal check, employer check, money order, or cashiers check. The Trustee will not begin disbursing adequate protection payments until the filing fees have been paid to the Clerk or sufficient funds are being held by the Trustee for payment of the filing fees upon confirmation, conversion or dismissal.

When a debtor's bankruptcy schedules disclose a domestic support obligation, the Trustee requests that the debtor provide the name, address and telephone number of said claim holder in writing to the Trustee before or during the meeting of creditors. The Trustee will also send this request to the debtor's attorney in each Chapter 13 case where a DSO is listed in the debtor's schedules.

Beginning September 2005 - Due to contractual changes with our software provider, interim statements for Southern Division Chapter 13 cases that have been inactive/closed for more than 13 months will no longer be available at the Courthouse or via the internet. Any interested party needing an interim statement for an inactive/closed Southern Division Chapter 13 case should contact our office at (205) 323-4631 or info@ch13bham.com. This change will not effect the availability of interim statements in active cases or cases that have been closed within the last 13 months.

For an extremely informative pamphlet on bankruptcy, please go to http://www.uscourts.gov/library/bankbasic.pdf
provided by the Bankruptcy Judges Division of the Administrative Office of the U.S. Courts. Adobe Reader is required.