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Bankruptcy court seeks comment on expanding mediation procedure

December 18, 2015

The U.S. Bankruptcy Court for the Southern District of Indiana is seeking comment on its proposed expansion of a mortgage loss mitigation mediation program currently used in the New Albany division.

The court established the program available to debtors in Chapter 13 cases “in an effort to facilitate consensual resolutions between lenders and individual debtors whose residence is at risk of loss, to avoid the costs of litigation, and to facilitate the effective reorganization of the affairs of debtors in bankruptcy,” according to the Dec. 17 court order.

The expansion of the procedure would be made by a general order, effective Feb. 1. Currently, there are a few flaws in the process used in the New Albany division, thus the court has made some modifications to the general order and is seeking comment. Comments can be made by sending an email to Local_Rules_Comments@insb.uscourts.gov. Comments are due by Jan. 15.
 

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