Local Rule 3002.1-1: PROCEDURE FOR HOLDERS OF HOME EQUITY LINES OF CREDIT ("HELOC") TO FILE NOTICES OF PAYMENT CHANGES

RULE 3002.1-1 PROCEDURE FOR HOLDERS OF HOME EQUITY LINES OF CREDIT ("HELOC") TO FILE NOTICES OF PAYMENT CHANGES.

If a claim arises from a home equity line of credit agreement ("HELOC"), the holder of that claim may elect to file the notice of payment change required by Fed. R. Bankr. P. 3002.1(b) on a twice-yearly basis by doing the following:

(a) Send the debtor monthly payment statements consistent with the terms of the lending agreements. These periodic statements must notify the debtor of any payment changes under the HELOC agreement that may occur between the filing of each twice-yearly notice; and,

(b) File a notice of payment change on the first day of December and June of each year following the petition date. The twice-yearly notice shall include (i) the current monthly payment amount; and (ii) the history of any payment changes since the last notice of payment change or since the filing of a proof of claim. If the petition date is less than 30 days before either the first day of December or June of the petition year, then the first semi-annual notice shall be filed on or before the next reporting date. The debtor shall retain its rights under Fed. R. Bankr. P. 3002.1(b)(2). Monthly payment statements or the twice-annual notice of payment change mailed to a debtor under this rule are not, without further cause, a violation of the automatic stay.