Revised Bankruptcy Rule 2019 Effective

Highly anticipated changes to Rule 2019 of the Federal Rules of Bankruptcy Procedure became effective on December 1, 2011. Rule 2019 mandates certain disclosures concerning the economic interests of creditors and interest holders in bankruptcy cases. Whether these disclosure requirements apply to ad hoc, or informal, creditor groups has been the subject of vigorous dispute in the bankruptcy courts during the last four years, with courts lining up on both sides of the divide in roughly equal numbers. These disputes prompted the Advisory Committee on Bankruptcy Rules to conduct a review of proposed revisions to the Rule (including extensive public commentary).

The Rules Committee ultimately recommended a substantially amended Rule 2019 on May 27, 2010, designed to accommodate the evolving constituencies and controversies in modern bankruptcy cases by, among other things, expanding the scope of the disclosure requirements to encompass more parties and types of