As I have discussed recently here and at the National Bankruptcy Forum, the U.S. Bankruptcy Court for the Eastern District of Michigan has recently made a number of changes to the procedures for practicing in its courts, including several local court rule changes and the implementation of new forms.  Many of these changes are highly technical in nature, which may have led some to ask:  so what?  Procedure becomes something we need to think about when failure to follow it can delay or even prevent your discharge. For example, a notice issued by the Eastern District on September 29, 2009 states that the Court will dismiss any electronically filed case in which the petition is not filed as the lead event.  This is problematic because an individual cannot file under Chapter 7, or any other chapter, if during the preceding 180 days a prior bankruptcy petition was dismissed for certain reasons specified at 11 U.S.C. §§ 109(g), 362(d) and (e). In other words, this defect - if not corrected - could prevent you from filing bankruptcy for another six months. Additionally, local court rule changes that went into effect December 1, 2009 reduce by one day (from 15 to 14 days) deadlines for taking action under certain Federal Rules of Bankruptcy Procedure.  Failure to take action within these newly shorted deadline could impair a party's rights. Finally, the Eastern District of Michigan also recently adopted a new mandatory form for reaffirmation agreements filed on or after December 1, 2009. Failure to file the reaffirmation agreement cover sheet with a reaffirmation agreement will result in a notice of deficiency from the Bankruptcy Court Clerk; failure to correct the deficiency may result in striking the reaffirmation agreement.

Detroit bankruptcy lawyers must be aware of these notices as well as other local rules and practices in the Eastern District, while bankruptcy attorneys in other jurisdictions should review their local court rules for similar changes.  The Eastern District of Michigan’s recent procedural changes emphasize the complexity of bankruptcy cases and the need for competent counsel.

-Drew Broaddus