Comment on FR Doc # E8-01450

The proposed Chapter 7 Trustee's Report of No Distribution is highly burdensome and is an unnecessary waste of time. A chapter 7 Trustee has substantial duties already pursuant to the Bankruptcy Code in every case, including cases in which there is no distribution to be made to unsecured creditors. These duties are already well documented in section 704 of the Bankruptcy Code. Lest there be any doubt as to the extent of these duties, permit me to quote these duties: (a) The trustee shall - (1) collect and reduce to money the property of the estate for which such trustee serves, and close such estate as expeditiously as is compatible with the best interests of parties in interest; (2) be accountable for all property received; (3) ensure that the debtor shall perform his intention as specified in section 521(2)(B) of this title; (4) investigate the financial affairs of the debtor; (5) if a purpose would be served, examine proofs of claims and object to the allowance of any claim that is improper; (6) if advisable, oppose the discharge of the debtor; (7) unless the court orders otherwise, furnish such information concerning the estate and the estate's administration as is requested by a party in interest; (8) if the business of the debtor is authorized to be operated, file with the court, with the United States trustee, and with any governmental unit charged with responsibility for collection or determination of any tax arising out of such operation, periodic reports and summaries of the operation of such business, including a statement of receipts and disbursements, and such other information as the United States trustee or the court requires; (9) make a final report and file a final account of the administration of the estate with the court and with the United States trustee; (10) if with respect to the debtor there is a claim for a domestic support obligation, provide the applicable notice specified in subsection (c); (11) if, at the time of the commencement of the case, the debtor (or any entity designated by the debtor) served as the administrator (as defined in section 3 of the Employee Retirement Income Security Act of 1974) of an employee benefit plan, continue to perform the obligations required of the administrator; and (12) use all reasonable and best efforts to transfer patients from a health care business that is in the process of being closed to an appropriate health care business that - (A) is in the vicinity of the health care business that is closing; (B) provides the patient with services that are substantially similar to those provided by the health care business that is in the process of being closed; and (C) maintains a reasonable quality of care. For all of these duties, a chapter 7 trustee is now paid $60. This payment only is received in cases where the debtor pays a filing fee. In cases filed In Forma Pauperis, the trustee is required to perform all of these duties without any compensation whatever. The United States Trustee's office informs us that the completion of all of the data required in the new uniform report of no distribution is mandatory. They recognize that the automated "radio button" form of electronic reporting now performed will no longer be available. They suggest that data enabled forms will allow software vendors to automate the process. These suggestions do not recognize the reality of day to day practice. Not every practitioner will use data enabled forms. Many practitioners will simply scan documents and make images of documents in portable document format. There will not be any recognizable data. Moreover, few, if any, in forma pauperis or pro se filers will utilize software allowing them to create data enabled files. It is my estimate that it will take a paralegal at least 15 minutes to complete the information required on the new report of no distribtion. Assuming that the paralegal is paid $25/hour, a not unreasonable assumption, and assuming that fringe benefits, overhead and related costs for the paralegal result in a total expenditure of $50/hour, each of these new forms of report of no distribution will cost the typical chapter 7 trustee approximately $12.50. This represents more than 20% of the trustee's compensation for the case. It is difficult to ascertain the benefit of parsing this data onto a new report of no distribution when all of the data, to the extent that it is accessible, is already available on the debtor's schedules. One would have to believe that data parsing softwear could be developed by the Adminstrative Office of Courts or other body interested in such data as to be able to acquire it from the source. All that is to be obtained from this new report of no distribution is a subset of data which is already extant. What benefit is to be gained by imposing this new, costly, time consuming and not cost-effective burden on the chapter 7 trustee? Trustees are willing to cooperate with all reasonable and even many unreasonable regulatory requests. The present rule-making, however, appears to be highly burdensome and of little utility. I respectfully suggest that the Executive Office of the United States Trustee and any other authorities behind this rule-making rethink their position and suspend the implementation of the rule requiring the new form of report of no distribution.