Local Rule LBR 3070-1: Chapter 13 – Payments

LBR 3070-1. Chapter 13 – Payments

(a) Plan Payments to Trustee.

(1) Form of Payment. Plan payments must be made in a form acceptable to the trustee.

(2) Wage Orders. The debtor may request an order directing the debtor's employer to make plan payments directly to the trustee (a "wage order") by submitting an application substantially conforming to the local form (Application for Order to Employer to Pay Funds to Trustee; Order). The trustee may request that the court issue a wage order if the debtor fails to make timely plan payments. The debtor may request an order vacating a wage order by submitting an ex parte motion substantially conforming to the local form (Motion to Vacate Order to Employer to Pay Funds to Trustee; Order).

(b) Pre-Confirmation Lease Payments. Pre-confirmation payments due under personal property leases governed by § 1326(a)(1)(B) may be made directly by the debtor to the lessor only if the plan so provides or if no plan provision addresses payment of the debtor's lease obligation. If the plan provides for payment of the lease obligation by the trustee, the debtor must make the payment as part of the total payment to the trustee, and the trustee will pay the lessor, both before and after confirmation, upon the filing of a proof of claim by the lessor.

(c) Pre-Confirmation Adequate Protection Payments. Pre-confirmation adequate protection payments governed by § 1326(a)(1)(C) may be made directly by the debtor to the secured creditor only if the debtor's plan so provides or if no plan provision addresses payment of the adequate protection. If the plan provides for payment of the secured claim by the trustee, the debtor must make the adequate protection payment as part of the total payment to the trustee, and the trustee will pay the secured creditor, both before and after confirmation, upon the filing of a proof of claim by the creditor.