As news develops, this section will try to keep the Chapter 13 community in the northern portion of the Eastern District apprised of developments on
bankruptcy practice procedure and legislation over the course of time.

May 19, 2010

According to Chief Judge McGarity,

On May 11, 2010, the district judges for the Eastern District of Wisconsin approved the bankruptcy courts local rules.  The rules that have been effective on an interim basis are now effective as of that date.

Margaret Dee McGarity

April 13, 2010

Form B 283 - Chapter 13 Debtor's Certification Regarding Domestic Support Obligaions and Section 522(q) was propounded April 10, 2010. Click here for a copy of the form

March 16, 2010

When BAPCPA arrived with new filing requirements and "automatic dismissal" provisions, the Eastern District Bankruptcy Court developed a "Deficiency Notice" to warn debtors and their attorneys that documents were missing, and that failure to file by the 45-day deadline would result in dismissal of the case.  Then, we changed the Deficiency Notice to a Deficiency Order to provide even more teeth to the warning about possible dismissal.  

Filings are up, BAPCPA is almost five years old, and the Judges and Clerk of the Eastern District have noticed that many of these Orders are issued to attorneys making "short filings" who have their documents in well before the 45-day deadline.  For this reason, effective April 1, 2010, the Eastern District will no longer issue deficiency orders or notices to attorneys or debtors represented by attorneys.  You will be responsible for checking that your filing is complete, and obtaining an extension of time when you can't get the Schedules, SOFA, B22, and other required "information" filed by the § 522(i) deadline.  

March 15, 2010

Revised dollar amounts for the Bankruptcy Code take effect April 1, 2010. Click Here for the new amounts.

February 28, 2010

Debt limits for Chapter 13 increase April 1, 2010, to $360,475 of unsecured debt and $1,081,400 of secured debt.  This change represents an increase of about 7% over the Chapter 13 debt limits in effect prior to the change.  Congress limited the amount of debt owed by the debtor in a Chapter 13 case but adjustments to the debt limits are scheduled to occur every three years on the first day of April in the year of adjustment beginning April 1, 1998.  The Bankruptcy Code in §109(e) prohibits use of Chapter 13 by individuals with debts that exceed the specified limits.  The adjustments are required by §104(a) of the code and an adjustment is due this year.

The adjustment of various dollar amounts specified in the bankruptcy code is intended by statute to reflect the change in the Consumer Price Index for All Urban Consumers, published by the Department of Labor, for the most recent 3-year period ending on December 31 of the prior year.  The dollar amounts are rounded to the nearest $25 increment and apply to a number of different dollar limits impacting Chapter 7, 11, 12 and 13 cases.

June 25, 2009
Based upon the feedback we received at the last United States Trustee meeting, and after further consideration of the issue, we have determined that debtors’ counsel, trustees, or their staffs will no longer be permitted to act as the interpreter of record for debtors or creditors at section 341 meetings in those locations where there is access to the Program’s contract tele-interpreter service.  This change in policy is to preserve the integrity of the transcript for civil and criminal prosecution purposes

Older News

Judge McGarity decided that above median debtors in chapter 13 may not take a deduction for the contractural payment on surrendered property. Click here for the pdf.

The Chapter 13 Trustees for the Eastern District have decided(unless a contrary decision is received from a Court of competent jurisdiction) that the federal stimulus payment does not constitute a tax refund under disposable income calculations. This follows the precedent from the last time there was a stimulus distribution by the government.  (Updated 4/17/08)

New No Look Fee
The judges of the Eastern District have met and decided it is appropriate to raise the "no look" fee for chapter 13 cases from $2,500 to $3,000, effective for cases filed on or after October 1, 2007. We are referring to this as a "no look" fee, meaning it will not be necessary to file a fee application with notice to interested parties, unless fees exceed this amount at any time during the case. However, fees are subject to review if challenged by any party, and there will be no presumption that the fees are reasonable. See Fed. R. Bankr. P. 2016 and 2017. (Updated 10/3/07)

910 Claims
The 7th Circuit in a direct appeal held that a 910 vehicle cannot be surrendered in full satisfaction of the debt. The creditor retains the right to file a deficiency unsecured claim. The opinion is here. (Updated July 11, 2007)

In Re 06-20127 Smith (Bankr. E.D. Wis. May, 2007)
When a creditor files its proof of claim pre-petition and the debtor (a) proposes a plan that specifically articulates how it will treat that creditor's claim, (2) that treatment is different than the treatment in the proof of claim, and (3) the debtor serves the plan on that creditor, the treatment in the confirmed plan controls over the proof of claim if the creditor does not object to its treatment pre-confirmation. Click here to view the decision. (Updated May 31, 2007)


Electronic Service
Our office has consented to electronic service under Rules 7005(b)(2)(D) and 9014(b). When you file documents with the U.S. Bankruptcy Court, our office will normally receive a copy within 2 days. Click Here to see what items we do not need courtesy copies of. (Updated 6/1/06)

A note from the Chief Judge
At a recent staff meeting, the Judges of the Eastern District of Wisconsin discussed Fed. R. Bankr. P. 9006(f), which states:

When there is a right or requirement to do some act or undertake some proceedings within a prescribed period after service of a notice or other paper and the notice or paper other than process is served by mail or under Rule 5(b)(2)(C) or (D) F. R. Civ. P., three days shall be added to the prescribed period.

The usual practice for a motion for relief from the automatic stay is to provide a notice of motion giving 15 days from the date of the notice within which to file an objection and request for a hearing. Since such a notice of motion requires the responder to do something, that is, to “undertake some proceedings within a prescribed period,” three days are added for mailing. Therefore, if the notice has been served by mail, an affidavit of no objection and proposed order should not be submitted until the 19th day after service. This would allow for the three extra days required under the above rule. The court has frequently received affidavits of no objection and proposed orders on the 16th day which does not provide for the allowed time to object. This makes the affidavit premature as the time has not yet passed.

With respect to orders submitted as a result of a hearing or orders submitted with an affidavit of default of a prior order, copies of the proposed order should be served on the interested parties and proof of that service submitted with the proposed order. The court will usually hold these orders under the five day rule. Also, please attach a copy of the prior order to the affidavit of default. (Updated 3/23/05)
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