In the United States, bankruptcy is governed by the federal court and rules, with certain property rights being determined by state law.  The federal Advisory Committee on Bankruptcy Rules, engaged in a modernization project intended to simplify the language within bankruptcy forms, created new Official Bankruptcy Forms to this end and has now issued them.  Effective December 1, 2015 these new forms are required for use in the bankruptcy courts.

There are many changes for both creditors and debtors within the forms and attendant procedure, but the greatest impact of the revisions to the forms is for debtors; for instance, moving from a two page case opening petition to an eight page case opening petition.  Effective December 1, 2015, if the new forms are not used for filing the filer will risk being subject to a deficiency notice or risk the filed document not being accepted.  Other changes in bankruptcy procedure can be expected as the forms’ implementation moves forward.

Ally Law member firms are experienced in debtor / creditor relations and bankruptcy issues.  They can help you negotiate your way through the bankruptcy procedure and the use of the new forms.  For more information about our services in this area, contact us at yourally@ally-law.com.

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By Vorys.