Local Rule 3070-2: CHAPTER 13- DISTRIBUTIONS

BANKRUPTCY LOCAL RULE 3070-2 CHAPTER 13- DISTRIBUTIONS

(a) Need to File Claim.

(1) Need to File Proof of Claim. A creditor must file a timely proof of claim (Official Form B410) in order to receive distributions under the plan.

(2) Need to File Administrative Claim. A debtor's attorney must file a request for payment of an administrative expense for compensation and reimbursement of expenses to be paid through plan distributions. The request may be made by filing in the claims register a request substantially conforming to the local form (Request for Payment of Administrative Expense: Compensation for Debtor's Attorney in Chapter 13 Case [GUB 3070-2a2]). The request may be made by filing in the claims register.

(b) Arrearage Portion of Secured Claim. Notwithstanding FRBP 3002(a), the holder of a secured claim must file a timely proof of claim in accordance with FRBP 3002(c) in order to receive plan distributions for a prepetition arrearage or default. If the plan provides for payment of an "arrearage," the trustee shall make a distribution according to the amount stated on the proof of claim as "Amount of arrearage and other charges at time case filed included in secured claim," unless the court orders otherwise. The trustee will make no distribution on the secured portion of a claim that states the amount of the arrearage is $0.00, none, or the like, or if the arrearage amount is left blank.

(c) Untimely Claims. Unless the court orders otherwise, claims filed after the time periods stated in FRBP 3002(c) will not receive distributions under the plan. The court may consider a stipulation to allow an untimely claim without notice to other creditors if executed by the debtor and the trustee.

(d) Debtor's Duty to Examine and Object to Claims. Upon the expiration of the claims bar date for non-governmental creditors, the debtor is responsible for reviewing all claims and filing an objection to any claim with which the debtor disagrees and which has not yet been determined by the court.

(e) Trustee's Notice of Filed Claims and Intent to Make Distributions. The trustee must file and serve on the debtor and all creditors a notice of claims filed and intent to make distributions. The notice must list the claims filed and advise that distributions under the plan will be made according to the classification and amount of claims as filed, unless the court already has decided the value of collateral securing a debt, avoided a lien, or otherwise disallowed or modified a claim by specific order. The notice may state that the actual distributions will be subject to changes including, but not limited to, determinations of objections to claims, amended claims, stipulations allowing untimely claims, and awards of attorney compensation. The trustee shall serve the notice of claims filed and intent to make distributions by the later of:

(1) 28 days after the latest claims deadline stated in FRBP 3002(c), and

(2) 60 days after the entry of the plan confirmation order.

(f) Determination of Claimant's Address for Distribution. The trustee shall make distributions in accordance with the name and address of the claimant stated on the proof of claim, subject to any amendment, assignment, transfer, change of address, or any other information filed with the court as part of the individual case record. The trustee shall not make a distribution to a claimant or address other than that stated on the proof of claim unless the notice of an address change is filed with the court. A claimant may give notice of an address change by filing a form substantially conforming to the local form (Notice of Change of Address (Proof of Claim) [GUB 3070-2f]).

(g) Claims Amended, Assigned or Transferred After the Deadline to File a Claim. If a claim is amended, assigned, or transferred after the deadline to file a claim under FRBP 3002, the creditor amending the claim, the assignee, or the transferee must file promptly with the court the document amending, assigning or transferring the claim.

(h) Distribution on Disputed Claim. To suspend distribution on a disputed claim, the debtor must file and serve an objection to claim on the claimant not later than 28 days after the filing of the trustee's notice of filed claims and intent to make distributions. The objection must comply with procedures stated elsewhere in these rules. Pending a determination of an objection, the trustee shall cease making a distribution on the disputed claim. If the objection is overruled, at the request of the claimant or the trustee, the court may make provision for payment of any dividends not paid while the objection was pending. Nothing in these rules prevents the debtor, the trustee, or other party in interest from objecting to a claim after the deadline specified in this paragraph. However, unless the court orders otherwise, an objection that is untimely under this subdivision and that is sustained shall not result in a refund of amounts already paid on the disputed claim.

(i) Relief from Stay.

(1) Order Granting Relief from Stay. If an order granting relief from the automatic stay or co-debtor stay unconditionally permits the secured creditor to foreclose on or repossess its collateral, the trustee shall cease making payments as soon as practicable to all creditors whose claims are based entirely on a secured interest in the collateral being foreclosed on or repossessed.

(2) Stipulation or Order Regarding Relief from Stay. If a stipulated order on relief from stay or other order provides that an arrearage in postpetition payments will be added to the prepetition debt amount paid through the plan, the creditor must file an amended claim to show the adjusted total amount due.

(j) Payment of Debtor's Attorney Fees. Plan distributions on account of compensation and reimbursement of expenses of attorneys for chapter 13 debtors will be made before or at the same time of each payment to creditors. Upon entry of an order allowing fees and expenses, an attorney must draw on any funds being held in a client trust account before accepting any plan distributions.

BKLR 3070-2 Related Forms: • Proof of Claim [B410] • Request for Payment of Administrative Expense; Compensation for Debtor's Attorney In Chapter 13 Case [GUB 3070-2a2] • Notice of Change of Address (Proof of Claim) [GUB 3070-2f]