CURRENT NEWS

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 serving the Trustee with copies of tax returns in composition cases, or pursuant to 11 U.S.C. § 521, the Trustee requests that redacted pdf's of those documents be emailed to documents@ch13bham.com. Please use this email address when service of tax returns is required separately from any filing with the U.S. Bankruptcy Clerk.

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.