Local Rule 3012-1: Valuation of Collateral

Rule 3012-1 Valuation of Collateral

(a) How Raised. The value of collateral for a secured claim may be bought before the court for determination by separate motion or as part of an objection to claim filed under Rule 3007, Federal Rules of Bankruptcy Procedure.

(b) Motion/Objection to Proof of Claim. A motion to value collateral or an objection to a proof of claim that raises the issue of valuation must: (1) state— [A] value of the collateral, [B] method of determining the value, [C] amount of the claim, if any, that is secured, [D] the date by which the opposition must be filed, and [E] in case filed under chapter 13, the hearing date on the motion or objection; and (2) be served on— [A] each creditor having or claiming a security interest in the collateral, [B] the trustee, and [C] if represented by counsel, counsel for each.

(c) Opposition to Motion or Objection to Proof of Claim.

(1) A secured creditor who disagrees with the valuation of the collateral securing the creditor's claim may: [A] File an objection to the valuation, which objection must state the— (i) creditor's opinion of the value of the collateral, (ii) method of determining the value, and (iii) amount of the claim that is secured; and [B] serve the objection on— (i) the debtor, (ii) any other creditor having or claiming to have a security interest in the collateral, (iii) the trustee, and (iv) if represented by counsel, counsel for each.

(2) The objection to the motion must be filed and served not later than twenty-one (21) days after the motion is served.

(3) Upon receipt of the objection, if requested by the creditor, the debtor must make the collateral available for examination and appraisal.

(4) Not later than seven (7) days after an objection to valuation has been served, the debtor must: [A] File a reply either— (i) accepting the creditor's valuation, or (ii) controverting the creditor's objection; and [B] serve the reply on— (i) the objecting creditor, (ii) any other creditor having or claiming to have a security interest in the collateral, (iii) the trustee, and (iv) if represented by counsel, counsel for each.

(5) Failure of the debtor to file a timely controverting reply under paragraph (4) will be deemed an acceptance of the creditor's valuation.

(d) Hearing. Except as otherwise provided by these Rules, any party desiring a hearing on the motion and any opposition thereto must request a hearing by submitting a Calendar Request.

(e) Mandatory Discovery Exchange.

(1) Unless otherwise ordered by the court or as provided by rule, in any case in which the valuation of collateral is placed at issue the parties must exchange all valuation data and appraisals not later than seven (7) days before the hearing; and

(2) Any party refusing or failing to comply with paragraph (1) may be subjected to such sanctions as the court may deem appropriate under the circumstances, including the assessment of costs and attorney's fees and/or the exclusion of the evidentiary materials not produced.

(f) Chapter 13 Cases. Unless otherwise ordered by the court: (1) a motion to value collateral under Rule 3012, Federal Rules of Bankruptcy Procedure must be served and filed not later than the time the Plan and Notice of Confirmation Hearing Date is served; and (2) the hearing thereon will be held at the same time as the hearing on confirmation of the plan.