On December 1, 2015, amendments to the Federal Rules of Bankruptcy Procedure and official forms took effect. The amendments primarily affect debtors filing for relief under the Bankruptcy Code. However, changes to the Proof of Claim form and the addition of a form that must be filed when a claim is based on a debt secured by a security interest in the debtor’s principal residence affect creditors. A creditor filing such a claim must now file both a new Official Form 410A and the revised form of Proof of Claim, Official Form 410.
Official Form 410A requires the creditor to “list all transactions on the claim from the first date of default to the petition date.” The instructions to the form define the “first date of default” as “the first date on which the borrower failed to make a payment in accordance with the terms of the note and mortgage, unless the note was subsequently brought current with no principal, interest, fees, escrow payments, or other charges immediately due and payable.”
The first date on which a debtor failed to make a payment in accordance with the terms of the note may be years before a bankruptcy case is filed. In fact, if the debtor is habitually late in making payments, the first date of default may be the date the first payment was due. Particularly when the loan has been sold by the original lender, creditors may have a difficult time complying with this new requirement.