December 18, 2018

Bankruptcy Noticing Center Changes Rule for Delivering Notices to Invalid Addresses

As of July 12, the Bankruptcy Noticing Center (BNC) will no longer mail notices to invalid addresses for a debtor’s creditors.

Unless a creditor itself has advised the court of an alternate address at which it receives correspondence, bankruptcy courts typically use creditor addresses that a debtor has provided in his or her bankruptcy filing. If a creditor moves or is no longer at the address known by the bankruptcy court, the United States Postal Service returns as “undeliverable” mail to the court, which often results in wasted time and postage.

All that will change on July 12, when a new BNC policy goes in force. The BNC will no longer attempt to mail “undeliverable” correspondence to a debtor’s creditor and will, instead, bypass the creditor and mail notices directly to the debtor’s attorney. The debtor or the debtor’s attorney are then instructed to forward the notice to the creditor.

The BNC will continue to mail notices to undeliverable addresses under the following conditions: (1) the address is for a debtor; or (2) the address is for a creditor who, pursuant to 11 U.S.C. § 342(f), has filed a preferred address with the BNC for all cases or who, pursuant to 11 U.S.C. § 342(e), has filed a preferred address with the court for a particular case. The BNC will attempt to contact the preferred address recipient regarding the need for address correction.

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