Loss Mitigation Program


 

IMPORTANT NOTICE TO THE BAR AND PUBLIC
CONCERNING SECOND AMENDED GENERAL ORDER ADOPTING
LOSS MITIGATION PROGRAM AND PROCEDURES
AND REVISED LOCAL FORMS

EFFECTIVE IMMEDIATELY

Please be advised that pursuant to a Second Amended General Order Adopting Loss Mitigation Program and Procedures (LMP) Pending Adoption of Local Rule dated September 19, 2013, the Board of Judges of the United States Bankruptcy Court for the District of New Jersey has approved revisions of the LMP as follows:

Section V- Commencement of Loss Mitigation- Amendment limits the opportunity to utilize loss mitigation in Chapter 7 cases by requiring a Notice of Request for Loss Mitigation to be filed within 30 days of the commencement of the case, with no extensions permitted.  Amendment also offers lenders the opportunity to opt out of the LMP after abandonment by the trustee. 

Section VI - Loss Mitigation Order - Amendment deletes the time frames section as duplicative of the time frames set forth in Sections VIII and IX.

Section VII – Duties of the Loss Mitigation Parties - Amendment eliminates the Status Report requirement.  Parties will continue to file the Local Form, Loss Mitigation Final Report within the time set by the Court in the Loss Mitigation Order.   Requests for extension of the LMP may be set forth in writing and filed with the Court as prescribed by Section IX.B. 

Section VIII - Loss Mitigation Process - Amendment reflects the mandate to use a Portal, the opt out available to attorneys where a hardship is shown, and the inapplicability of the provision to self-represented debtors. Amendment includes reference to document preparation software, not as a requirement, but as a potential tool for the parties to the LMP.  

This Second Amended General Order supersedes the General Orders of the Court entered on August 1, 2011 and May 29, 2012.

For ease of reference, the following link may be accessed to review the Second Amended General Order and marked versions of the revised LMP and related local forms, Notice of Request for Loss Mitigation; Loss Mitigation Order; Application for Extension or Early Termination of Loss Mitigation Period; and Order Respecting Request for Extension or Early Termination of Loss Mitigation Period. 

The revised LMP and related local forms are also available in the Clerk’s Office and on the Court’s website, www.njb.uscourts.gov.

Dated: November 12, 2013

 James. J. Waldron, Clerk

 



Previous Notices to the Bar concerning Loss Mitigation