What are the Bankruptcy Rules of Procedure?

The bankruptcy rules of procedure are formally known as the Federal Rules of Bankruptcy Procedure. These rules identify how bankruptcy cases, which come under Title 11 of the United States Code are to proceed. These Rules of Bankruptcy Procedure must be adhered to by all parties involved in bankruptcy, including debtors, creditors, attorneys, trustees and administrative law judges.

The Rules of Procedure cover every aspect of the process of filing for bankruptcy and receiving relief from your debt by the bankruptcy court. According to the rules themselves, their purpose is to "secure the just, speedy, and inexpensive determination of every case and proceeding."

Federal Rules of Bankruptcy Procedure

The rules begin with how to commence a bankruptcy, by filing a petition with the clerk. The petition has to include the name of the debtor, their social security number (or federal TIN) and has to list all names the debtor may have used for the 8 years prior to filing.

• A filing fee is required for every petition. The filing fee can be paid in installments, with court approval.
• If you are filing Chapter 7, you may qualify for and possibly receive a waiver of the filing fee. The waiver has to be included at the time you file the bankruptcy petition.

The Rules of Procedure include the lists of all documents and schedules that must be used, based on the type of bankruptcy to be filed. The forms and supporting documents must be filed as complete, with no missing or inaccurate information.

• Proof of income for the prior 60 days.
• Financial statements.
• List of all assets and debts.
• List of open contracts and unexpired leases.

At the time of filing, the debtor has to include proof that he or she has completed a credit counseling course offered by an approved, certified vendor. In addition to governing the procedure for cases of individual debt discharge, the Rules also include how the court is to handle cases that include minors, those who are incompetent, cases involving parties outside the United States, and cases where the bankruptcy proceeding was not brought voluntarily by the debtor.

Even the potential death of the debtor during the proceeding is covered by the Rules. Rule 1016 outlines that a Chapter 7 bankruptcy case will continue to its natural conclusion even if the debtor dies before the bankruptcy is complete. However, while the same may happen with Chapter 13 and other types of bankruptcy it is more likely that the case will be dismissed.

Get Legal Help

The bankruptcy process can be very complicated for a novice, and it is important that proper procedure be followed. Contact a bankruptcy attorney who can answer your questions and help you through the process so that you can achieve the debt relief that you need.