Local Rule 3015-1: PLAN REQUIREMENTS IN CHAPTER 13

RULE 3015-1. PLAN REQUIREMENTS IN CHAPTER 13.

(a) Required Form. All chapter 13 plans must be filed on Official Form 113, unless the Court grants the debtor leave to file the plan in a different format. Whenever these Rules discuss a chapter 13 plan or specify a "part" of a plan they are referring to Official Form 113.

(b) Embedded Motions.

(1) Debtors must check the applicable box in Part 1 of the plan and complete the relevant sections in Part 3 of the plan, on Official Form 113, when seeking to:

(A) avoid judicial liens or nonpossessory, nonpurchase money security interests that impair their exemption under § 522(f);

(B) determine the value of collateral and fix the amount of the creditor's claim secured by that collateral under § 506(a);

(C) strip one or more liens on their property;

(D) otherwise modify the payment of the claim from the terms in the parties' contract (extend repayment period, reduce interest rate); or

(E) surrender collateral and terminate the automatic stay against that collateral.

These Rules refer to these requests for relief in a Plan as "embedded motions."

(2) Additionally, to obtain relief through an embedded motion, debtors must file the plan in CM/ECF a second time, in lieu of filing a separate motion for the specific relief, and attach a notice of motion (specifying the page and part of the plan requesting the relief), a certificate of service, and a proposed order granting that specific relief with a reference to the page and part of the plan where the relief was sought.

(3) The hearing date for an embedded motion must either precede or coincide with the hearing date for confirmation of the plan.

(c) Feasibility of Plan Payments. Either the debtor must appear in person to present testimony evidencing an understanding of the plan terms and the ability to meet the proposed payments or file an affidavit in support of confirmation (Local Form CV-1).

(d) Minimum Monthly Payments. Unless the Court orders otherwise for good cause shown, the minimum monthly plan payment is $50.

(e) Sale Plans. A plan that is funded in whole or in part from the sale of property is called a "sale plan." Sale plans must (1) provide that the sale(s) will close within 1 year of confirmation of the plan, unless the Court approves a later closing date, (2) identify the property to be sold, the estimated sales price and the amount to be paid into the plan from the sale; and (3) provide an alternate form of relief for any creditor with an interest in the property in Part 2.4 of the plan. Once the debtor has a fully executed contract of sale, the debtor must file a separate motion to approve the sale.

(f) Treatment of Pre-Petition Claims. All allowed pre-petition claims must be paid through the plan, regardless of a creditor's preference or the dischargeability of the debt.

(g) Disclosure and Payment of Attorney's Fees. All unpaid pre-petition debtor's attorney's fees must be disclosed in the Bankruptcy Rule 2016(b) statement, included in the plan, and paid through the plan. All post-petition debtor's attorney's fees must be approved by the Court and paid through the plan.

(h) Service of Plans. The Clerk will serve all original plans via CM/ECF or first-class mail. The debtor is responsible for any elevated service required under the Bankruptcy Rules for the relief sought in embedded motions.

(i) Amended Plans. The debtor may file an amended plan, along with all necessary amended schedules supporting it, no later than seven days prior to the confirmation hearing date. The debtor must serve the amended plan on all parties whose treatment is diminished from the treatment set forth in the original plan.

(j) Motion to Enlarge Time to File Plan. If a debtor files a motion to enlarge the time to file the plan and seeks to file the plan fewer than seven days before the date set for the initial meeting of creditors, the debtor must obtain the trustee's consent.