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60 Legal Industry Update National Focus S C O T T A . S Y D E L N I K , E S Q . , D A V I D S O N F I N K , L L P With the advent of the revised Proof of Claim form, that took effect nationwide on December 1, 2015, creditors will be required to provide more detailed loan information, which they, for various reasons, may not necessarily possess. e changes to the form, necessitated by the Federal Rules of Bankruptcy Procedure, mark a dramatic shift from just a few years ago when the documentary proof and detail needed were extremely limited. For creditors, the implications of these changes include, most significantly, the need to spend more time and incur more costs to complete a claim and the increased susceptibility to sanctions for filing an insufficient claim. As a result, creditors may feel caught in a catch-22 situation: file a proof of claim with partial or missing information or sit out the bankruptcy and don't file one at all to avoid the risk of sanctions. However, by increasing attention to loan histories and loan transfers, as well as working closely with counsel, servicers can successfully navigate the demands of this increased burden of proof. e claim form effective December 1, 2015 marks a continued move toward increasing the information needed, and consequently, the burden on creditors. e increased detail comes in response to a demand from judges, trustees, and debtor's counsel for more transparency in regards to what the debtor owes on their mortgage and what must be paid through their Chapter 13 plan in order to effectuate an effective reorganization. is follows the bankruptcy rules that took effect in December 2011, which first introduced the Mortgage Proof of Claim attachment. Previously, prior to the 2011 change, claims were rudimentary and lacking in detail: a creditor's proof of claim could be supported solely by Official form 10, which set out very basic information regarding the claim and were used universally. To complete the form, creditors simply needed to set forth the amount of the claim, whether the claim was secured or unsecured, whether or not the claim is entitled to priority, the origin for the claim, the amount of arrears owing at the time of the petition, and the date the debt was incurred. While not required in the Code, most creditor's attorneys made it a practice to attach an unofficial worksheet, containing a basic breakdown of the arrears owing including missed payments, corporate advances and escrow advances (though a breakdown of those fees was generally not included). e introduction of the Mortgage Proof of Claim Attachment in December 2011 marked the beginning of the shift toward Federal regulations demanding greater detail: creditors now needed to provide an itemized statement with the principal amount of the Changing Proof of Claim Requirements Increase the Burden of Proof for Secured Creditors A HIGHER BAR TO

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