The United States Bankruptcy Court, with the valuable assistance of the Attorney Advisory Committee chaired by Chief Judge Frank J. Bailey and Judge Melvin S. Hoffman, has drafted new and proposed amendments to the Massachusetts Local Bankruptcy Rules (PDF Version).

PROPOSED NEW AND AMENDED LOCAL RULES
RULE 1009-1. AMENDMENTS

(a) A party filing a document amending a voluntary petition, list, schedule, statement of financial affairs, statement of intention or statement of current monthly income shall do so by notice as set forth in Fed. R. Bankr. P. 1009(a), except with respect to the following in an individual debtor’s case:
(1) amendment to add a creditor or to change a creditor’s address; or
(2) amendment to the schedule of exemptions after the deadline for objecting to the exemptions.
(b) If either exception set forth in subsection (a) applies, the debtor shall file a motion to amend seeking approval of the amendment.
(c) The following documents, to the extent applicable, shall be filed along with the documents required in subsections (a) and (b):
(1) the amended voluntary petition, list, schedule, statement of financial affairs, statement of intention, or statement of current monthly income, which shall clearly state in the caption that the document is “amended”;
(2) Official Form B6 -Declaration Concerning Debtor’s Schedules;
(3) an amended summary of schedules; and
(4) a certificate of service of notice to all parties in interest, including persons affected by the amendment.
(d) If the debtor is adding a creditor or is changing an existing creditor’s address on the mailing matrix, the motion to amend or notice shall include a separate list of the names and addresses of only the added creditors in compliance with MLBR Official Local Form 1.

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A Boston bankruptcy attorney can help you manage personal or professional debts you are unable to pay. Bankruptcy laws allow people and businesses to (1) get a “fresh start” by relieving most debts; and (2) repay the money owed to all creditors as fairly as possible.

When you file for bankruptcy protection, all other legal actions against you are put on hold. Creditors cannot sue you, garnish your wages, repossess your car or home entertainment system, or start or continue with a foreclosure action against your home. There are different types of bankruptcy filings and each has its own advantages. Since bankruptcy can significantly impact your future purchasing power and credit rating, you should see a bankruptcy attorney to make sure the benefits of filling bankruptcy outweigh the consequences.

The Boston bankruptcy lawyers at Esher Rossi will discuss your financial restructuring options. Our bankruptcy lawyers serve all of Massachusetts including Boston, the Greater Boston MetroWest region, Cape Cod and the cities of Boston, Cambridge, Cape Cod, Framingham, Lowell ,  Newton, and Worcester.

The primary reason people file bankruptcy in Massachusetts is to obtain a court-ordered discharge of debt. However, not all forms of debt are dischargeable in bankruptcy. Before you file bankruptcy in Massachusetts, it is important to understand the nature of your debts, and which debts can and cannot be discharged in bankruptcy.

Esher Rossi is a full service Massachusetts insolvency and financial restructuring firm. Our bankruptcy attorneys represent consumer and business debtors as well as creditors, trustees, creditors’ committees, and investors, in all aspects of distressed economic  and bankruptcy situations including Chapter 7 bankruptcy, Chapter 11 bankruptcy, Chapter 13 bankruptcy, mediation and arbitration services. [Read more...]

By Attorney Jack Esher
Originally published by The Roundtable Symposium Law Review Journal (PDF Version)

I.  INTRODUCTION TO ADR IN US BANKRUPTCY COURTS

A.         Introduction to ADR: ADR Generally

Alternative Dispute Resolution (ADR) has become firmly established in our contemporary legal system and continues to grow in bankruptcy practice. The Alternative Dispute Resolution Act of 1998  requires that each federal district court authorize by local rule the use of ADR in “all civil actions, including adversary proceedings in bankruptcy.”   On August 12, 1997, the National Bankruptcy Review Commission adopted its Chapter 11 Working Group’s Proposal No. 18 as one of the Commission’s official recommendations to Congress.  The Proposal recognizes that ADR benefits disputants because it reduces the need for costly and inefficient litigation and usually results in greater satisfaction than the litigation alternative. The Commission’s position was neither novel nor surprising.   From the Bankruptcy Court’s perspective, ADR also alleviates the strain on the court system caused by rising bankruptcy filings and increased pressure to streamline dockets.

Parties have used mediation, the preferred method of voluntary dispute resolution, to resolve a wide range of bankruptcy disputes, from simple claim objections to complex, multi-party Chapter 11 plan negotiations that have become protracted or reached an impasse.   It has been particularly effective in large case claim reconciliation programs.    Adversary proceedings, particularly preference and other avoidance actions, are often referred to mediation.  The Middle District of Florida has enjoyed notable success in the mediation of claims involving the Internal Revenue Service.

Methods of ADR continue to proliferate.  The rapid growth in recent years stems from dissatisfaction with some aspect of traditional court adjudication, such as the high cost and protracted nature of litigation, the lack of predictability of result, the escalation of conflict that the adversary context nurtures, and at the client level, the loss of control as the problem takes on a life of its own in the hands of lawyers and judges in the complex and sometimes mystical legal machinery .  Increasingly, though, parties are choosing ADR, especially mediation, for its own positive qualities, in particular, its flexibility and efficiency.

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