Blog sponsored by Bankrupt-Law.com


Gwyn R. Fisher is a law clerk for the U.S. Bankruptcy Court of the Western
District of Tennessee.

Wednesday, March 22, 2006

Change isn't always easy, especially when it comes in the form of a 500-plus
page bankruptcy act that took five different Congresses nearly 10 years to
pass.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is the
largest overhaul of the nation's bankruptcy laws since 1978. The sweeping
changes affect everything from case filing fees to credit counseling and
pension plans to corporate bailouts. So how is the local bankruptcy court
handling all the changes?
"BAPCPA introduced many new policies, motions and procedures, and although
there has been a reduction in case filings, we're certainly experiencing an
increase in workload within the new cases," said Chief Bankruptcy Judge
David S. Kennedy.
Judges in the Western District of Tennessee are taking extra time and care
as new issues are raised.
"It is important that our decisions properly reflect the new law as
enacted," Kennedy explained. "And by the same token, we strive to give
procedural guidance to the bar, the trustees, debtors and creditors as to
how to proceed under BAPCPA."
Dialogue between judges and the bar began long before the BAPCPA went into
effect Oct. 17. Throughout the fall, the bankruptcy section of the Memphis
Bar Association presented a series of seminars titled "We Will Survive."
Each session covered different aspects of BAPCPA, and all four judges in the
Western District participated.
In addition to the substantive and procedural issues, the new act also
requires the courts to create several new forms and procedures for
implementing them. For example, an individual debtor whose debts are
primarily consumer debts now is required to file several additional forms
along with the traditional bankruptcy petition, such as a "means test" form
(to determine if a debtor qualifies for relief under Chapter 7 liquidation),
a statement of current monthly income and a certificate of completion for
mandatory pre-petition budget and credit counseling.
"We worked with the Administrative Office of the U.S. Courts to develop the
substance of the local forms, and then worked with IT to get the necessary
information posted on our Web site (www.tnwb.uscourts.gov)," said Court
Clerk Jed G. Weintraub.
The clerk's office also addressed policy, substantive and procedural
changes. For example, under the new law, a debtor now can file an
application to waive filing fees. As the court welcomes two new judges,
Paulette Delk and George Emerson, more change is on the way in the local
bankruptcy court.
"Now that we're a little more familiar with the new substantive law and
procedures, we will re-evaluate our court scheduling and case assignment
systems as our new judges come aboard," Kennedy said.
The sweeping changes brought by BAPCPA and the addition of the new judges
means judges, trustees, debtors, creditors and the bar all can expect to see
more changes in the future.