Prepared by Lucretia Scruggs, Esq. with Shapiro Pendergast & Hasty serving Georgia
In December 2016, when Bankruptcy Rule 3002.1 was enacted, the mortgage industry worried about the increase in administrative work and the cost of noticing and keeping track of fees and expenses while a borrower was in bankruptcy. The rule appeared to be quite simple: the fees and costs the debtor incurred were to be noticed with the court within 180 days of their incurrence. There were already in place industry standards of what the usual fees would be, so no one truly believed that this would cause concerns or that many of the Post-Petition Fee Notices would be objected to. Additionally, the Note and/or Security Deed usually contain a provision that allows for the collection of bankruptcy post-petition fees. Only a few years later are we learning that this is not the case.
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