Dan LaBert: So noticing is a requirement of practicing bankruptcy law?
Kathryn Jump: It is a requirement of any type of law, but in bankruptcy, there are a lot of people who need to be noticed in every case. Anytime you modify or amend a plan, request that the Court allow the debtor to obtain credit, or sell an asset, the entire Master Mailing Matrix has to be notified. That matrix is created when the debtor first sits down with counsel and creates the list of creditors found on Schedules D – H. All of those entities are required to be noticed when something in the case occurs that potentially impacts them.
Dan LaBert: Can you clarify that?
Kathryn Jump: Sure, for example, when a Chapter 13 plan is amended that is going to lower the distribution amount to the unsecured class of creditors from 10% to 5%, that plan needs to be noticed to everyone on the creditor mailing matrix. This is because they are going to be adversely impacted by the adoption of the amended plan.
But, let’s say that the same plan is not going to lower the distribution. Let’s say that the debtors just won the lottery or received a large cash settlement. Now they have sufficient income to pay their creditors, so they modify their plan to increase the distribution to the unsecured class from 10% to 100%. No creditor is going to be adversely affected by that amendment to the plan so in that case, notice would not be required to the entire master mailing matrix.
Dan LaBert: So a general rule of thumb would be that notice is required when a party to the case is going to be adversely affected by the pleadings being filed by the debtor.
Jay S. Jump: Exactly. There are some additional noticing requirements that are spelled out by the Rules and the Bankruptcy Code, but I think that is a great general rule of thumb. I follow the theory of ‘If I have to question whether or not this [the pleadings] should go to the entire master mailing matrix, then it needs to go to the entire master mailing matrix.’
Dan LaBert: Earlier this year, we forged an alliance with www.certificateofservice.com to create a member benefit. Let’s talk about that for a moment.
Kathryn Jump: Absolutely! We were very excited to see that come to fruition. It represents to us so much more than just a convenient agreement between NACBA and it’s users.
Jay Jump: I agree. We would not exist as www.certificateofservice.com today but for being members of NACBA.
Featured Member Benefit:
19
Member Benefits