Northern District Bankruptcy Court Seeks Public Comment on Proposed Rule Changes

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The United States Bankruptcy Court for the Northern District of Indiana is seeking public comment on proposed changes to local court rules regarding Chapters 12 and 13 bankruptcies.

A new local rule would be added to address presumptive reasonable attorneys’ fees for Chapter 13 matters. current consumption under Chapter 13.

Other changes to B-2016-1 include that compensation that does not exceed the compensation presumed reasonable may be awarded, after notice to all creditors, either upon application or through the additional provisions of a plan confirmed without the need for the lawyer to provide supporting documents. Documentation.

“If a case is dismissed or the services of an attorney are terminated prior to release, the court may, on application by any interested party, review the reasonableness of any presumptively reasonable fee awarded under this rule,” says the proposed change. “The lawyer may request fees in excess of the fees deemed reasonable for extraordinary, unusual or unforeseen legal services. Such a request must be accompanied by supporting documents demonstrating the reasonable value of these services.

Proposed changes have also been made to a few other local rules, of which B-2002-2 which deals with the notice of opportunity to oppose motions. The amendments would add a new subsection, (a)(28), dealing with applications for the employment of professionals, other than debtor’s attorney, in Chapters 12 and 13 cases.

The Amendments would also add cases in Chapters 12 and 13 to B-2002-3, Limited Notice in Chapter 7 Cases.

Finally, a rule change would be made to B-3007-1,: Objection to Claims; Default, adding a new paragraph, (b)(2), dealing with the valuation of a secured claim in a disputed claim.

Specifically, the new wording states that if the objection seeks determination of the amount of a secured debt, “a mover must identify the property securing the debt, the value of that property, the amounts due under any lien or first ranking, and any other mathematical calculations used to determine the opponent’s proposed amount of the secured claim.”

Comments should be submitted by March 11 via email to [email protected] or by mail to Christopher M. DeToro, Clerk of the Connecticut Bankruptcy Court, Northern District of Indiana, 401 South Michigan St., South Bend, 46601.

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