The Federal Rules of Bankruptcy Procedure (FRBP) are amended periodically to fine-tune the bankruptcy process and this year is no exception. This December 1st creditors should pay special attention to the amendment to Rule 9036 as it impacts bankruptcy notices.
Specifically, Rule 9036 is being amended to require high-volume mail recipients to move to electronic noticing. This pushes high-volume paper mail into a more efficient and environmentally friendly email with electronic PDF attached.
Who is a high-volume mail recipient?
A high-volume mail recipient is defined as an entity who receives 100 or more paper bankruptcy notices per month. The Director of the Administrative Office of the U.S. Courts will notify an entity if they are designated as high-volume, which will then require registration with the Bankruptcy Notice Center.
What paper mail is going away?
This applies directly to mail notices sent from the court and does not directly impact mailings sent by other parties, such as debtor, debtor’s attorney, or trustee. Other parties may continue to serve notice via mail or electronic means if applicable.
When is this effective?
December 1, 2021 is the effective date of the updated rules, but creditors should register for electronic notice in advance.
How do you register for electronic notices from the court?
Simply click this link to the Bankruptcy Noticing Center: https://bankruptcynotices.uscourts.gov/
Then click “Sign up for service today” and you will be prompted to complete registration.
Many creditors leverage some form of technology to receive court notices electronically today, but some may find they are still processing paper mail from the courts in addition to this technology. Our firm recommends registering as soon as possible with the Bankruptcy Noticing Center as a best practice, regardless of the creditor’s designation as high-volume. Electronic delivery allows for better tracking and organization across the portfolio of bankruptcy cases.
Also, some clients may list our firm or another entity (such as NBS) as the notice address on the filed proofs of claim. If this the case, this Rule change will have minimal impact as we will continue to accept notices (mail or email) sent to the notice address listed on the proof of claim on the client’s behalf.
Should you have any further questions, feel free to contact our office at
Hilary.Bonial@BonialPC.com or Paul.Cervenka@BonialPC.com.