Announcements

The Bankruptcy Threshold Adjustment and Technical Corrections Act was signed into law by President Biden on Tuesday June 21. The Act amends Section 1182(1) of the Bankruptcy Code to include the increased aggregate debt limit of $7.5 million in Subchapter V’s definition of a “debtor” (with a two year sunset from enactment). In addition, the Corrections Act provides that an individual with regular income is eligible to be a debtor under Chapter 13 if the individual owes noncontingent, liquidated debts of less than $2.75 million as of the date of the petition (also with a two year sunset from enactment).

Chief Judge Thomas J. Catliota has informed the United States Court of Appeals for the Fourth Circuit that he will retire from his position as U.S. Bankruptcy Judge for the District of Maryland on October 3, 2022, after 16 and a half years of outstanding service to the Court.  The Court congratulates Chief Judge Catliota on the occasion of this announcement, and thanks him both for his long-term, dedicated service as one of the Court’s Judges and also for his extraordinary leadership as Chief Judge immediately following the sudden passing of beloved Judge Wendelin I. Lipp and then, just a couple of months thereafter, during the unprecedented Covid-19 pandemic.

Adjustments to the dollar amounts stated in various provisions of the Bankruptcy Code and one provision of Title 28 of the United States Code will go into effect on April 1, 2022, for cases filed on or after that date. The adjustments’ timing and calculation are codified in 11 U.S.C. § 104.  A chart showing the affected sections, including the current and adjusted dollar amounts, can be found here. Seven Official Bankruptcy Forms and two Director’s Forms also contain references to several of the affected dollar amounts. The revised forms, available here, will be effective on April 1, 2022 and will apply to cases filed on or after that date.

The Office of the United States Trustee has announced that Brian A. Tucci has been appointed as a Chapter 13 Standing Trustee in Baltimore.  Please click here to view the announcement.

The United States District Court has designated the Honorable David E. Rice to serve as Chief Judge of the Bankruptcy Court, effective April 30, 2022. Please click here to view the announcement.

The Court has completed a video aimed at unrepresented parties, titled “Filing Bankruptcy Without an Attorney:  What You Need to Know!”, and available by clicking here.  This short video features retired Bankruptcy Judge Duncan W. Keir, and is highly recommended viewing for anyone considering filing bankruptcy without legal representation.  It provides crucial information on the dangers of proceeding unrepresented, low cost and no cost attorney options, the Debtor Assistance Project, and additional resources available on the Don’t Have a Lawyer page of the Court’s website. 

Amendments to Bankruptcy Rules 2005, 3007, 7007.1, and 9036 and Official Form 122B (Chapter 11 Statement of Current Monthly Income) are effective December 1, 2021. The text of the amended rules/form and accompanying committee notes can be viewed here.  In addition, The United States Bankruptcy Court for the District of Maryland has approved new Local Bankruptcy Rules 1002-2, 1002-3, 3011-1, and 7007-1, amendments to Local Bankruptcy Rules 1009-1, 3007-1, 5001-2, and 5005-1, and deletion of Local Bankruptcy Rules 1007-3 and 2081-1 effective December 1, 2021.  Further, based on the amendments to Local Bankruptcy Rules 1002-3 and 5005-1, Administrative Orders 21-03 and 03-02 will be rescinded as unnecessary effective December 1, 2021. To view the Administrative Order implementing the amendments, a summary of the changes, and a redlined copy of the amended local rules, please click here.

The Court’s Small Business Reorganization Act (SBRA) resources webpage, available here, contains various SBRA Materials including an updated example Subchapter V Plan Report, example Subchapter V Initial Scheduling Order, and example Subchapter V Second Scheduling Order.

The United States Bankruptcy Court for the District of Maryland has approved for publication and public comment amendments to the Court’s Local Bankruptcy Rules.  Please click here for a summary of the proposed changes, a redline copy of the amendments, and instructions on how to submit comments.  Comments on the proposed revised rules should be submitted on or before November 1, 2021.  If adopted, the amended Local Bankruptcy Rules will go into effect on December 1, 2021.

The United States Bankruptcy Court for the District of Maryland has amended its Complex Chapter 11 Case Procedures.  To view the Administrative Order implementing the amendments, please click here.