24 November 2025
/ Milos Gvozdenovic
Major FRBP 3002.1 Changes Effective December 1, 2025: What Mortgage Creditors Must Know
Effective December 1, 2025, the Federal Rules of Appellate, Bankruptcy, and Civil Procedure, along with the associated court forms are going to change. Today’s handy guide is going to focus on one of the most sweeping changes, which is the changes to Federal Rule of Bankruptcy Procedure 3002.1.
So, where do we start? Let’s dig in one section at a time!
1) FRBP 3002.1(a): The words “contractual installment payment” have been removed and replaced by “payments on the debt.” If you look at the accompanying Committee Notes, this was done to “make the rule more applicable to home mortgages that may be modified and are being paid according to the terms of the plan rather than strictly according to the contract” which also includes “reverse mortgages.”
The takeaway here is that FRBP 3002.1 applies to all payments made towards a mortgage, not just contractual ones. This theme will continue as we dig deeper into the rule.
2) FRBP 3002.1(b)(1): A Notice of Payment Change must be filed at least 21 days before the new payment takes effect. Nothing new here, but the biggest change, and quite possibly the biggest change to the rules, is you can no longer opt out of the Notice of Payment Change requirement for a Home Equity Line of Credit (HELOC).
2) FRBP 3002.1(b)(1): A Notice of Payment Change must be filed at least 21 days before the new payment takes effect. Nothing new here, but the biggest change, and quite possibly the biggest change to the rules, is you can no longer opt out of the Notice of Payment Change requirement for a Home Equity Line of Credit (HELOC).
The old language “If the claim arises from a home equity line of credit, the court may modify this requirement” was purposely removed. Also of important note, the Notice of Payment Change form has been updated and you will be required to use Official Form 410-S1 going forward. Per the Committee Notes, “Official Form 410S1, Notice of Mortgage Payment Change, is amended to provide space for an annual HELOC notice.”
This form change was made for the newly revamped FRBP 3002.1(b)(2), now the controlling rule for all HELOCs and the topic we’ll dive into next.
3) FRCP 3002.1(b)(2): HELOC loans have to either:
3) FRCP 3002.1(b)(2): HELOC loans have to either:
a.) File a Notice of Payment Change 21 days before the new payment takes effect pursuant to FRCP 3002.1(b)(1) same as a traditional mortgage loan.
b.) File a Notice of Payment Change once per year starting within a year of the bankruptcy filing date and then annually thereafter.
If you choose the once per year option, you must include a reconciliation amount disclosing any overpayment or underpayment between Notice of Payment Changes. What does that mean? It means you have to attach a reconciliation which shows how much the loan was overpaid (or underpaid) between the yearly Notice of Payment Changes that were filed.
Unfortunately, it’s unclear from the rules and committee notes what is done (if anything) with the overpayment or underpayment. According to the Committee Notes, the purpose of the annual Notice of Payment Changes is because “requiring a notice for each change can be overly burdensome.” But not so fast… If the monthly payment change is greater than $10.00, then a formal Notice of Payment Change must be filed at least 21 days before the new payment takes effect in addition to the annual notice. The annual notice does not waive the Notice of Payment Change requirement for payments that increase more than $10.00.
The takeaway here is you really need to be on top of your HELOCs every month for the duration of the plan!
4) FRBP 3002.1(b)(3): What happens if you don’t file a timely notice? If the new payment has increased, then the new payment takes effect “on the first payment due date that is at least 21 days after the untimely notice was filed and served.” FRBP 3002.1(b)(3)(A).
4) FRBP 3002.1(b)(3): What happens if you don’t file a timely notice? If the new payment has increased, then the new payment takes effect “on the first payment due date that is at least 21 days after the untimely notice was filed and served.” FRBP 3002.1(b)(3)(A).
If the new payment decreased, then the new payment takes effect “on the actual payment due date, even if it is prior to the notice.” FRBP 3002.1(b)(3)(B). So, in a nutshell, a late Notice of Payment Change is addressed in a way that is least detrimental to the debtor.
5) FRBP 3002.1(b)(4): One thing that remains unchanged is that a party in interest can still object to the Notice of Payment Change and must do so before the day the new payment is due.
6) FRBP 3002.1(c), (d), and (e): The Committee Notes sum these up better than I can: “The changes made to subdivisions (c) and (d) are largely stylistic. Stylistic changes are also made to subdivision (e). In addition, the court is given authority, upon motion of a party in interest, to shorten the time for seeking a determination of the fees, expenses, or charges owed. Such a shortening, for example, might be appropriate in the later stages of a chapter 13 case.” Enough said.
5) FRBP 3002.1(b)(4): One thing that remains unchanged is that a party in interest can still object to the Notice of Payment Change and must do so before the day the new payment is due.
6) FRBP 3002.1(c), (d), and (e): The Committee Notes sum these up better than I can: “The changes made to subdivisions (c) and (d) are largely stylistic. Stylistic changes are also made to subdivision (e). In addition, the court is given authority, upon motion of a party in interest, to shorten the time for seeking a determination of the fees, expenses, or charges owed. Such a shortening, for example, might be appropriate in the later stages of a chapter 13 case.” Enough said.
7) FRBP 3002.1(f): This is another big one: the “Motion to Determine Status” aka the mid-case “heat check” (my words, not the rules). The old FRBP 3002.1(f) was completely shifted down one rung to FRBP 3002.1(g). In its place, the Trustee or Debtor at any time between the filing of the case and the filing of the pleading formerly known as the Notice of Final Cure (more on that later) can file a Motion to Determine Status (using mandatory Official Form 410-C13-M1) “to determine the status of any claim described in” section 3002.1(a). FRBP 3002.1(f)(1).
There is no limit on when or how many of these motions can be filed, although the Committee Notes say they “should be used only when necessary and appropriate for carrying out the plan.” The Claimant has 28 days to respond (using mandatory Official Form 410-C13-M1R). FRBP 3002.1(f)(2).
The claimant must respond if they disagree with the facts set forth in the Debtor or Trustee’s Motion to Determine Status. The court then must enter an order, after notice and hearing, to determine the status of the claim. FRBP 3002.1(f)(3). “If the claim holder does not respond to the motion or files a response agreeing with the facts set forth in it, the court may grant the motion based on those facts and enter an appropriate order.” FRBP 3002.1(f)(3).
Pretty self-explanatory. From the looks of the rule, it seems as though a response is only required if the Claimant disputes the Motion to Determine Status.
8) FRBP 3002.1(g) aka the former FRBP 3002.1(f) due to a numbering change. Say goodbye to the “Notice of Final Cure” and say hello to the “Trustee’s End of Case Notice of Disbursements Made” (Official Form 410-C13-N). Quite a mouthful, isn’t it? Creditors mandatory response is due 28 days later using Official Form 410-C13-NR which has to be filed as a supplement to the Proof of Claim. FRBP 3002.1(g)(3).
8) FRBP 3002.1(g) aka the former FRBP 3002.1(f) due to a numbering change. Say goodbye to the “Notice of Final Cure” and say hello to the “Trustee’s End of Case Notice of Disbursements Made” (Official Form 410-C13-N). Quite a mouthful, isn’t it? Creditors mandatory response is due 28 days later using Official Form 410-C13-NR which has to be filed as a supplement to the Proof of Claim. FRBP 3002.1(g)(3).
The trustee or debtor has a right to file a Motion for a Court Determination of a Final Cure (Official Form 410-C13-M2), which is due 45 days from the date the claimant responded to the Trustee’s End of Case Notice or after the 28-day response deadline has passed from the Trustee’s End of Case Notice.
If the claimant disagrees with the Motion for a Court Determination of Final Cure, a response must be filed within 28 days using Official Form 410-C13-M2R. FRBP 3002.1(g)(4)(B). Once all the dust settles, and after notice and a hearing, “the court must determine whether the debtor has cured all defaults and paid all required post-petition amounts.” FRBP 3002.1(g)(4)(C).
9) FRBP 3002.1(h): Last but not least, what happens if the claim holder fails to give notice or respond? This was formerly FRBP 3002.1(i). It remains mostly unchanged. “If the claim holder fails to provide any information as required by this rule, the court may, after notice and a hearing… (1) preclude the holder from presenting the omitted information in any form as evidence in a contested matter of adversary proceeding in the case…; (2) award other appropriate relief, including reasonable expenses and attorney’s fees caused by the failure; and (3) take any other action authorized by this rule.” FRBP 3002.1(h).
9) FRBP 3002.1(h): Last but not least, what happens if the claim holder fails to give notice or respond? This was formerly FRBP 3002.1(i). It remains mostly unchanged. “If the claim holder fails to provide any information as required by this rule, the court may, after notice and a hearing… (1) preclude the holder from presenting the omitted information in any form as evidence in a contested matter of adversary proceeding in the case…; (2) award other appropriate relief, including reasonable expenses and attorney’s fees caused by the failure; and (3) take any other action authorized by this rule.” FRBP 3002.1(h).
Well, there you have it! Pretty simple, right? Hopefully this will provide you with enough knowledge to be able to address the rules when they are implemented. As with any rule changes, there will be some growing pains as everyone navigates their way through it, but we will be with you every step of the way.
Our team are constantly monitoring these changes. If you have any questions or would like to learn more about Weltman’s bankruptcy recovery solutions, feel free to connect with Shareholder Milos Gvozdenovic at any time.
This blog is not a solicitation for business, and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
