Effective December 1, 2009, the Federal Rules of Bankruptcy Procedure will be updated. The most significant change that affects creditors is the change in various time periods. The Rules set forth a number of deadlines for filing pleadings or responses to pleadings. These deadlines are not consistent and oftentimes fall on weekends or holidays. The updated Rules streamline these deadlines to multiples of seven. For example, a 15-day objection period will be shortened to 14 days, while a 20-day objection period will be extended to 21 days.

Similarly, the 10-day stay under Rule 4001 will be extended to 14 days. Under the current rule, an order granting relief from stay is effective 10 days after the date of the order. Starting December 1, 2009, an order granting relief from stay will not be effective until 14 days after the date of the order. Some judges permit a waiver or modification of this rule. Weltman, Weinberg & Reis will continue to seek these waivers and modifications in the jurisdictions that permit it.
 
The Federal Rules of Bankruptcy Procedure are adopted in all courts, so these changes will affect creditors in every jurisdiction in which they file bankruptcy pleadings. Although they create additional burdens for creditors, the underlying goal is to protect debtors’ sensitive financial information and identities.