Local Rule RULE 3070–1: Chapter 13—Payments

RULE 3070–1 Chapter 13—Payments

(a) Order of Distribution on Allowed Claims in Chapter 13 Cases. Unless otherwise stated in the Non-standard Provisions (Paragraph 9.1) of a confirmed chapter 13 plan, the chapter 13 trustee shall make distributions in the order listed below. If compliance with this Local Bankruptcy Rule will cause unreasonable delay under 11 U.S.C. § 1322(a)(5) or § 1325(a)(5)(B)(iii)(I) in the commencement of or completion of payments on an allowed secured claim, the chapter 13 trustee may adjust the payments, or a secured creditor may apply for an order to alter the payment scheme.

(1) Chapter 13 trustee commission under 11 U.S.C. § 1326(b)(2).

(2) At the same time and pro rata, allowed unsecured claims for: (i) any domestic support obligations and other claims described under 11 U.S.C. § 507(a)(1); and (ii) any administrative claims and other claims described under 11 U.S.C. § 507(a)(2), including any allowed debtor's attorney's fee.

(3) Claims payable to any former chapter 7 trustee under 11 U.S.C. § 1326(b)(3).

(4) Other priority claims defined by 11 U.S.C. §§ 507(a)(3) – (10).

(5) At the same time and pro rata with payments on priority claims under paragraph 4 above, allowed secured claims as follows: (A) allowed secured claims for pre-petition arrears, designated to be paid under the chapter 13 plan, in equal monthly amounts; and (B) allowed secured claims, designated to be paid in full under the chapter 13 plan, in equal monthly amounts at any specified interest rate.

(6) After payment of both allowed priority claims and allowed secured claims that are to be paid under the chapter 13 plan, allowed general unsecured claims.

(b) Chapter 13 Pre-Confirmation Adequate Protection Payments. Pre-confirmation adequate protection payments governed by 11 U.S.C. § 1326(a)(1)(C) shall be made by the debtor to the chapter 13 trustee as part of the total payment to the chapter 13 trustee. The chapter 13 trustee shall pay the amount provided for by the plan to the secured creditor both before and after confirmation, unless the debtor's plan provides that such payments will be made directly by the debtor or no plan provision addresses payment of the secured claim, in which event the debtor shall make the pre-confirmation payments directly to the secured creditor and furnish proof of such payments to the chapter 13 trustee.

(c) Chapter 13 Pre-Confirmation Payments of Personal Property Leases. Pre-confirmation payments of personal property leases governed by 11 U.S.C. § 1326(a)(1)(B) shall be made by the debtor to the chapter 13 trustee as part of the total payment to the chapter 13 trustee. The chapter 13 trustee shall pay the lessor, both before and after confirmation, unless the debtor's plan provides that lease payments will be made directly by the debtor or no plan provision addresses payment of the debtor's lease obligation, in which event the debtor must make the pre-confirmation payments directly to the lessor and furnish proof of such payments to the chapter 13 trustee.

(d) Distribution on Pre-Confirmation Dismissal or Conversion. Upon dismissal or conversion of a chapter 13 case, any funds that the chapter 13 trustee holds in a case shall be charged for the chapter 13 trustee's allowed expenses and any outstanding Clerk's fees.