Navigating through the Bankruptcy Waters of Notice of Post Petition Expenses and Final Cures

Previously published on July 5, 2012

On December 1, 2011, new bankruptcy amendments became effective. The changes and amendments to Rule 3002 of the Federal Rules of Bankruptcy created issues and gray areas allowing courts to interpret how creditors and their rights are effected during a debtor’s bankruptcy.

Under the new amendments, Rule 3002.1© states that “the holder of a claim shall file and serve on the debtor, debtor’s counsel, and the trustee a notice itemizing all fees, expenses or charges incurred in connection with the claim post-petition and asserted to be recoverable within 180 days after the fee, expense, or charge was incurred.” As such, the rule provides for an official form to be filed as a supplement to the original filed proof of claim. It does not amend the claim to allow the trustee to pay out the amounts incurred, but rather supplements the claim to put the debtor and their counsel on notice that such fees and expenses exist and provides an opportunity for the debtor or trustee to object. The debtor or trustee may file a motion to object to the fees within one (1) year after service of the fee notice. Additionally, if the debtor intends on paying the fees through the bankruptcy, the debtor must provide for a Chapter 13 plan modification and incorporate the payment of the fees into the plan payment. Otherwise, a creditor that wants to be paid will need to….”