1 May 2023
/ Garry A. Masterson
Staying on a Timeline: A Guide for Secured Creditors and Their Bankruptcy Recovery
As bankruptcy filings have increased month-to-month over the first quarter of 2023, there has never been a better time and place to make sure that practices are in place to maximize your recovery in the bankruptcy sphere. One of the chief items to pay attention to, as soon as you receive the notification that a consumer of yours has filed for bankruptcy, is the deadline by which you would need to file a timely objection to the bankruptcy plan of reorganization. Failure to closely monitor the deadlines and filings can have detrimental effects on your accounts and recovery as the bankruptcy case ensues.
Bankruptcy Rule 3015(f)’s objection to confirmation of a proposed plan needs to be filed and served on the applicable case parties no later than seven days prior to the date of the confirmation hearing. That in itself would seem to be an easy deadline to follow across the board in all district courts. However, the fly in the ointment of that practice is the other language in the rule: “unless the court orders otherwise”.
Many district courts have promulgated their own local rules or procedures regarding the deadline for the filing of a plan objection, as allowed by Bankruptcy Rule 3015(f). For example, in the Western District of Pennsylvania, a plan objection must be filed no later than seven days prior to the 341 meeting of creditors/confirmation hearing, a provision which may cause confusion due to the 341 meeting of creditors and confirmation hearing combination.
By the same token, other districts require a plan objection be filed within a certain number of days after the plan or amended plan is filed, or a set number of days after the 341 meeting of creditors is held. In short, the best practice is to closely review the notices you receive and keep track of the specific date in the case, not assuming the same methodology applies to all cases, let alone all cases in that specific district.
Not only is it important to keep track of deadlines to timely object to a proposed plan, but it is also important to concurrently review the proposed plan for any and all issues presented that may necessitate review and plan objection filing by your attorney.
If you would like to learn more about our Bankruptcy Recovery Group or have additional questions, contact attorney Garry Masterson 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.
Bankruptcy Rule 3015(f)’s objection to confirmation of a proposed plan needs to be filed and served on the applicable case parties no later than seven days prior to the date of the confirmation hearing. That in itself would seem to be an easy deadline to follow across the board in all district courts. However, the fly in the ointment of that practice is the other language in the rule: “unless the court orders otherwise”.
Many district courts have promulgated their own local rules or procedures regarding the deadline for the filing of a plan objection, as allowed by Bankruptcy Rule 3015(f). For example, in the Western District of Pennsylvania, a plan objection must be filed no later than seven days prior to the 341 meeting of creditors/confirmation hearing, a provision which may cause confusion due to the 341 meeting of creditors and confirmation hearing combination.
By the same token, other districts require a plan objection be filed within a certain number of days after the plan or amended plan is filed, or a set number of days after the 341 meeting of creditors is held. In short, the best practice is to closely review the notices you receive and keep track of the specific date in the case, not assuming the same methodology applies to all cases, let alone all cases in that specific district.
Not only is it important to keep track of deadlines to timely object to a proposed plan, but it is also important to concurrently review the proposed plan for any and all issues presented that may necessitate review and plan objection filing by your attorney.
If you would like to learn more about our Bankruptcy Recovery Group or have additional questions, contact attorney Garry Masterson 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.
