U.S. Trustee Program Director Tara Twomey addressed the National Association of Chapter Thirteen Trustees’ Annual Seminar on July 4, 2024. In her remarks, Twomey emphasized the significance of fresh starts and new beginnings, drawing parallels between the historical context of American independence and the principles underlying bankruptcy law.
Twomey recounted her early legal career in Boston, where she filed her first bankruptcy case as a lawyer at the Legal Services Center. She highlighted the transformative power of bankruptcy to change lives, citing examples from history and contemporary cases.
"On February 6, 1788, in the same Old State House, the Massachusetts convention voted to ratify the Constitution – our Constitution – the cornerstone of this new beginning that encapsulated the hope and determination to create a society where each individual could thrive," Twomey stated.
She also noted that Congress has long recognized that economic failure for honest but unfortunate debtors should not result in loss of liberty. "Through today’s Bankruptcy Code, Congress has provided individuals and businesses a chance to reassess, restructure and reemerge."
Twomey celebrated several personal stories illustrating courage and resilience among those who sought fresh starts through chapter 13 bankruptcy. She acknowledged the critical role played by trustees in these processes: "Let’s celebrate you because none of this would happen without you."
Discussing future initiatives, Twomey underscored efforts to build a strong and inclusive talent pipeline within bankruptcy practice. She praised programs like NACTT's Tom Vaughn Memorial Internship Program and USTP's expanded internship opportunities aimed at exposing promising individuals to bankruptcy as a profession early in their careers.
Turning to operational matters, Twomey addressed issues such as operating reserves, audits, uniform depository agreements, and virtual 341 meetings. She assured attendees that USTP is committed to balancing efficiency with necessary safeguards while listening to stakeholders' concerns.
"We are continuing to suspend the cap on operating reserves," she said regarding budgetary concerns due to smaller caseloads post-pandemic. On audits, she mentioned streamlined procedures for reduced-scope audits and reduced on-site requirements for auditors in later contract cycle years.
Regarding uniform depository agreements amidst banking crises, Twomey explained updates designed to reflect modern business practices while ensuring protection for estate deposits.
Finally, she discussed ongoing improvements in virtual 341 meetings: "The USTP will continue to assess the effectiveness of its guidance and processes."
Concluding her speech with reflections on Independence Day's significance and its relation to bankruptcy principles of hope and renewal, Twomey expressed gratitude for trustees' dedication: "Your part in this system is invaluable."