Local Rule LBR 3015-1: Chapter 13 Plan

LBR 3015-1. Chapter 13 Plan

(a) Form Plan. Unless the court orders otherwise, a plan filed in a chapter 13 case must substantially conform to the local form plan (Chapter 13 Plan). The form plan's text and order of presenting information may not be altered. The debtor may propose additional or different plan provisions only by setting them out in the "Nonstandard Plan Provisions" section of the plan.

(b) Dismissal Upon Failure to File Plan. If a plan is not filed with a chapter 13 petition or prior to an order converting the case to chapter 13, the clerk is authorized to issue an order to satisfy the deficiency. The order may include a notice that failure to file the plan within 14 days may result in dismissal of the case without further notice, unless on or before the deadline the court enters an order extending the time to file the plan. An order dismissing the case under this provision may include a 180-day bar to refiling a subsequent petition as authorized by § 109(g)(1).

(c) Extension of Time to File Plan. A debtor may request an extension of time to file a plan by filing and serving on the trustee and United States Trustee a motion substantially conforming to the local form (Debtor's Motion to Extend Time to File Case Opening Documents). Consideration of the motion may be expedited if the motion includes the trustee's signature indicating that there is no objection to the request.

(d) Motion to Reconsider Dismissal. A debtor whose case has been dismissed for failure to file a plan may request the court to reconsider the order dismissing the case by filing a proposed plan and a motion substantially conforming to the local form (Debtor's Motion to Reconsider Order Dismissing Case).

(e) Request to Value Collateral to Determine Amount of Secured Claim.

(1) Secured Claim of a Non-Governmental Unit. If the plan includes a request to value the collateral of a non-governmental unit under § 506(a), the plan must include an addendum that substantially conforms to the local form (Attachment A: Addendum to Section 4.4). Any supporting documents, such as appraisals, declarations, exhibits, and memoranda, shall be identified appropriately and appended to the addendum. Each addendum is limited to a single piece of real or personal property unless all interests being determined are secured by the same aggregate of collateral. Otherwise, requests involving different collateral must be made in additional, separate addenda.

(2) Secured Claim of a Governmental Unit. A request for valuation under Bankruptcy Rule 3012(c) to determine the amount of a secured claim held by a governmental unit must be made using a motion that substantially conforms to the local form (Attachment A: Addendum to Section 4.4). The determination sought in a motion involving a claim by a governmental unit must be consistent with any determination involving nongovernmental creditors' claims secured by the same collateral. The motion must be filed and served at the same time the related plan is filed and served. The governmental unit may object to a motion to value collateral by filing a single pleading objecting to the motion and confirmation of the related plan. Such objections must be filed not later than the deadline to file an objection to plan confirmation.

(f) Request to Avoid a Lien. If the plan includes a request to avoid a lien under § 522(f), the plan must include an addendum that substantially conforms to the local form (Attachment B: Addendum to Section 4.6). Any supporting documents, such as appraisals, declarations, exhibits, and memoranda, shall be identified appropriately and appended to the attachment. Additional requests to avoid liens must be made in additional, separate addenda.

(g) Service of Plan.

(1) Debtor required to serve plan. The debtor shall serve the plan and any amended plan on the trustee and all creditors and parties in interest when it is filed with the court. After 70 days following commencement or conversion of the case, service of an amended plan may be limited to those creditors who have filed proofs of claim.

(2) Manner of Service. The debtor shall serve the plan in the same manner as required for giving notice under Bankruptcy Rule 2002 of the time fixed for filing objections to confirmation of the plan. If the plan includes a request to avoid a lien or to determine the value the collateral of a non-governmental unit, the plan and addenda must be served on each affected creditor in the manner provided for service of a summons and complaint by Bankruptcy Rule 7004 and LBR 7004-1.

(3) Certificate of service.

(A) Local form. The debtor shall promptly file a certificate of service. If the plan includes an Attachment A or an Attachment B, the certificate shall substantially conform to the local form (Certificate of Service - Chapter 13 Plan).

(B) Timeliness. The debtor shall serve the plan and file a certificate of service at least 28 days before the date of the confirmation hearing.

(4) Consequences of deficient service. If the debtor fails to meet the timeliness of service requirements under this rule, the court may not schedule a confirmation hearing, or may cancel or continue the confirmation hearing, deny confirmation without a hearing, issue an order to show cause why the case should not be dismissed or converted for unreasonable delay prejudicial to creditors, or grant any other appropriate sanctions or other relief.

(h) Interest Rate Paid on Certain Claims.

(1) Standard Interest Rate. The clerk will set and publish a standard interest rate applicable to plan distributions on secured claims governed by § 1325(a)(5)(B)(ii). This rate may be used to determine the present value of a secured claim to be paid in deferred payments over time unless a lower interest rate is specified in the proof of claim. This does not bar a debtor or creditor from proposing a different interest rate.

(2) Interest Rate Calculation. The standard interest rate shall be set semiannually for the periods beginning January 1 and July 1 for cases commenced or converted to chapter 13 in those periods. The standard interest rate shall be the national prime rate of interest published in the Wall Street Journal on the first business day of those periods, plus 1.5%. This rate shall apply in cases commenced under or converted to chapter 13 during those respective periods and will remain in effect for the duration of the plan.