New FRBP Bankruptcy Rule 3002.1 Increases Pressure on Mortgage Servicers
Critical Changes Effective December 1, 2025
The rules for handling mortgage loans in Chapter 13 bankruptcy have changed. On December 1, updates to Federal Rule of Bankruptcy Procedure 3002.1 took effect. The goal is simple. Give debtors clear visibility into plan obligations. Force stronger accuracy, timing, and disclosure from servicers.
If you manage default servicing, these changes hit fast. Bankruptcy Operations Managers, Compliance Officers, and Default Servicing Executives all face new risk and scrutiny.
Expanded Motion Rights
Debtors can file a Motion to Determine Mortgage Claim Status at any point during a Chapter 13 plan, not only trustees.
On-Demand Requests
Debtors may request a full loan status review without prior cause at any time during the Chapter 13 case under amended Rule 3002.1(f).
Mandatory New Forms
All responses to status motions and final cure notices must use official 410C13 series forms (M1, M1R, NR) with no substitutions permitted.
Severe Penalties
Failure to file required notices or responses within deadlines can result in court sanctions, barred claims, and attorney fee awards to debtors.
The Impact on Your Business
Mortgage servicers are under pressure to meet every court-mandated deadline with absolute accuracy—or risk severe financial and reputational fallout. Under the December 1 updates, you must produce formally audited account data on demand, every time a debtor or trustee files a motion. Servicers who rely on spreadsheets and manual workflows will quickly face the risk of missed deadlines, manual errors, and the need to expand headcount just to keep up.
Non-compliance isn’t theoretical. You could end up paying millions in sanctions and settlements for failing to file payment change notices on time. That risk increases without automated controls and automated reconciliation. As inquiry volume spikes, manual processes will fail under faster timelines and higher stakes.
Real-time loan status reporting with complete accuracy
Without it, you’ll face outdated filings, court disputes, and potential sanctions for providing stale information.
Transparent reconciliation of escrow, suspense, and post-petition payments
Lack of clear, itemized reconciliations invites creditor objections, borrower challenges, and costly fee reversals.
Immediate access to payoff figures and amortization data
Delays or errors here lead to misstatements in court, missed cure calculations, and exposure to litigation.
Rapid response times to avoid court intervention
Failing to meet 21–28 day deadlines triggers hearings, statutory penalties, and multi-million-dollar judgments.
The InfoEx Advantage
InfoEx is the industry’s leading bankruptcy platform that turns regulatory complexity into automated precision. Built specifically for Chapter 13 workflows, it eliminates manual bottlenecks, reduces headcount needs, and ensures you never miss a critical filing.
Auto-generated Forms
InfoEx ingests live loan data and populates every required 410C13 form in seconds—no manual entry, no misfiled documents, guaranteed court compliance.
Streamlined Responses
Upon a debtor or trustee motion, InfoEx assembles and delivers a fully formatted response package with a click, preventing missed deadlines and avoiding hearings.
Compliance Monitoring
Continuous reconciliation of post-petition payments, escrow, and suspense balances for every Chapter 13 loan—InfoEx flags discrepancies before they escalate into legal challenges.
Proactive Alerts
Predictive alerts surface anomalies (escrow shortfalls, payment mismatches) before a motion is filed, giving your team time to resolve issues on your terms.
Why Servicers Nationwide Rely on InfoEx for Bankruptcy Rule 3002.1 Compliance
Eliminate Legal Risk
Automated compliance with complete audit trails
Seamless Integration
Works with your existing loan servicing platforms
National Scale
Proven support for portfolios of any size
Future-Proof
Built to adapt to evolving bankruptcy regulations
Customized
Custom business rules to meet your operational needs
Be Ready For the First Debtor Motion
See how InfoEx’s automation does the heavy lifting—so you can avoid extra hires and transform your compliance process from reactive to proactive.