Local Rule 3015-6: PERIODIC INTEREST RATE IN CHAPTER 13 PLANS
Bankr. D.S.C. — General rule
LOCAL RULE 3015-6: PERIODIC INTEREST RATE IN CHAPTER 13 PLANS a. Presumption of Reasonableness. In order to expedite the determination of an effective interest rate to be used by debtors in meeting the requirement of 11 U.S.C. § 1325, a presumed effective interest rate (Periodic Interest Rate) will be set by the Court with the assistance of a committee of trustees and members of the consumer bar. If applied to a secured claim in a chapter 13 plan, there will be a rebuttable presumption that the Periodic Interest Rate, for plan confirmation purposes, is reasonable.
b. Presumption that Plan Pays Present Value. A debtor who, in a chapter 13 plan, proposes to pay the Periodic Interest Rate on a secured claim (including, but not limited to, an arrearage on a real estate mortgage loan, an automobile loan, a mobile home loan, or a personal property loan) is presumed to be paying the present value of that claim as required by 11 U.S.C. § 1325(a)(5)(B)(ii).
Notes:
(2023) Paragraph (c) was removed.