Bankruptcy Rule and Forms Changes


The Federal Rules of Bankruptcy Procedures have recently seen several amendments, all of which will go into effect on Dec. 1, 2017. Some of the changes revolve around proof of claim requirements and timing, and the use of an official form for chapter 13 plans.

Currently under Bankruptcy Rule 3002, proof of claims in chapter 7, 12, or 13 must be filed no later than 90 days after the first date set for the meeting of creditors. Under the revised rule, a proof of claim is considered timely if filed no later than 70 days after the bankruptcy filing.

The new rule also clarifies that secured creditors must file a proof of claim for the claim to be allowed. In addition, it clarifies that a lien that secured the claim is not void just because the creditor did not file a proof of claim.

Bankruptcy rule 3002 was also amended for proof of claims secured by a security interest in the debtor’s principal residence. Proof of claim (Form 410), proof of claim attachment (Form 401A), and any escrow analysis must be filed within 70 days of the bankruptcy filing date.  Any other attachments that are generally required such as the note, mortgage or deed of trust, and relevant assignments or supporting documents can be filed as supplements to the claim no later than 120 days after the date the bankruptcy was filed.

A credit union should receive a notice from the bankruptcy court advising that the debtor has filed either a chapter 7 or a chapter 13 bankruptcy. The notice in a chapter 13 bankruptcy will indicate the deadline for a creditor to file a proof of claim.

In a chapter 7 bankruptcy, the notice will either provide a deadline for filing a proof of claim where there are assets available to pay creditors. Where there are currently no assets available to pay creditors, the notice will indicate that a creditor should not file a proof of claim unless they receive a notice from the court to do so. If it later appears that assets are available to pay creditors, the bankruptcy clerk will send another notice indicating that a creditor may file a proof of claim and the deadline for filing the claim.

The amendments to bankruptcy rule 3015 stipulate that if there is an official form for a plan under a chapter 13 case, the official form must be used, unless there is a local form that was adopted in compliance with bankruptcy rule 3015.

Compliance Question

Can a credit union close one or more of its branches on the day after Thanksgiving?

Yes, the Department of Financial Institution’s Division of Credit Unions issued an opinion in 2002 stating that credit unions may close for four (4) consecutive days if (a) the credit union’s board of directors adopts a written policy on the matter and (b) the credit union appropriately mitigates its risks under four listed conditions:

  • Credit union complies with applicable clearing house agreements or rules.
  • Credit union complies with “midnight deadline” under the Uniform Commercial Code.
  • Credit union complies with Reg CC’s time deadline for funds availability after deposit rule.
  • Credit union provides adequate notice to members(the DCU recommends two to six weeks prior notice).

In Oregon and Idaho, as long as all the processing needs are completed, a branch office may also be closed for four consecutive days.

DCU Opinion Letter 02-1

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA has posted the video of its Oct. 18 public briefing on the NCUA’s proposed budget.

The NCUA board released its board action bulletin from its November meeting. During the meeting, the NCUA approved the agency’s budget for 2018 and 2019, approved a new methodology for calculating the overhead transfer rate, and made amendments to regulations governing corporate credit unions.

Consumer Financial Protection Bureau (CFPB)

The CFPB issued a final rule stating that the ceiling on allowable charges under the FCRA will remain the same ($12) in 2018.

Federal Housing Finance Agency (FHFA)

The FHFA released its annual Performance and Accountability Report for 2017. The report details the activities by the FHFA as the regulator of the Federal Home Loan Bank System.

The FHFA announced that Fannie Mae and Freddie Mac will re-enter the Low Income Housing Tax Credit market as equity investors.

U.S. Department of Housing and Urban Development (HUD)

HUD released its annual report to Congress regarding the financial status of the FHA Mutual Mortgage Insurance Fund.

Security and Exchange Commission (SEC)

The SEC announced that it will host its 36th Annual Government-Business Forum on Small Business Capital Formation on Nov. 30, 2017, in Austin, Texas. The meeting will also be available via webcast at

Federal Deposit Insurance Corporation (FDIC)

FDIC Chairman delivered remarks at the Brookings Center regarding the financial regulations put in place after the financial crisis.

Federal Trade Commission (FTC)

The FTC announced a settlement with Western Union that is resulting in lost funds being returned to consumers that fell victim to the fraud schemes associated with the settlement. Consumers have until Feb. 12, 2018, to file claims with the FTC.

The FTC released its Fiscal Year 2017 Agency Financial Report.

Federal Financial Institutions Examination Council (FFIEC)

The FFIEC updated two fields in its 2017 Census Data, the FFIEC Estimated MSA/MD non MSA/MD Median Family Income and Estimated Tract Median Family Income.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of Nov. 9, 2017. The last update prior to this was Nov. 1, 2017.

Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, Compliance News.