Local Rule 3071-1: SECURED CREDITORS' AND LESSORS' OBLIGATION TO PROVIDE ACCOUNT INFORMATION AND STATEMENTS TO DEBTORS POST-PETITION

RULE 3071-1. SECURED CREDITORS' AND LESSORS' OBLIGATION TO PROVIDE ACCOUNT INFORMATION AND STATEMENTS TO DEBTORS POST-PETITION.

(a) Communication. It shall not be a violation of the automatic stay for secured creditors to communicate with debtors to provide information and/or documents as required by these Rules or in response to communications from debtors. Creditors and debtors are encouraged to send copies of all written and electronic communications to their respective counsel of record.

(b) Applicability of Rule.

(1) This Rule applies: (A) in cases filed under chapters 7, 11, 12, and 13; (B) to consumer loan relationships; and (C) as long as the debtor is protected by the automatic stay.

(2) This Rule does not apply: (A) to debts secured by non-consensual liens (e.g., tax liens, judgment liens, restitution liens); (B) when the collateral is vacant land or has been abandoned; or (C) when a mortgage was granted in conjunction with a commercial or business loan, notwithstanding whether the lien is on residential real property.

(c) Monthly Statements for Debts Secured by a Mortgage on Real Property. Secured creditors whose claims are secured by a mortgage on real property must provide monthly statements to each chapter 11, 12, or 13 debtor whose plan indicates an intent to retain the creditor's collateral or whose statement of intent indicates an intent to pay the creditor. The creditor must also provide monthly statements to each chapter 7 debtor who has expressed an intent in their statement of intent (served on the creditor) to retain the creditor's collateral. The monthly statements must contain at least the following information concerning the post-petition mortgage payments the debtor will make directly to the creditor:

(1) the date of the statement and the date the next payment is due;

(2) the amount of the current monthly payment and the amount of the next payment due;

(3) the amount of the payment attributable to escrow (if any);

(4) the amount due for any post-petition arrears and from what date;

(5) the amount of any outstanding post-petition charges;

(6) any other amount(s) due (e.g., for payment of taxes, insurance, attorney's fees, and/or other expenses), together with an explanation of the "other amount due" and, if the mortgage creditor has already made a payment that is the basis for this "other amount due," the date of such payment;

(7) the amount, date of receipt, and application of all payments received since the date of the last statement;

(8) the name and telephone number and other contact information the debtor or the debtor's attorney may use to obtain reasonably prompt information regarding the secured loan and recent transactions; and

(9) the address to which the next payment is to be sent and, if the address has changed since the last statement, a conspicuous statement notifying the debtor of the new address.

(d) Additional Monthly Statement Information Required upon Request. Upon reasonable written request of the debtor or case trustee, secured creditors whose claims are secured by a mortgage on real property must provide the following additional information:

(1) the principal balance of the secured loan;

(2) the original maturity date;

(3) the current interest rate;

(4) the current escrow balance (if any);

(5) the interest paid year-to-date; and

(6) the property taxes paid year-to-date (if any).

(e) Monthly Statements for Other Secured Debts and Assumed Leases. Secured creditors other than those whose claims are secured by a mortgage on real property, as well as lessors of assumed leases, must provide monthly statements or other forms of invoicing (e.g., a coupon book) to each chapter 11, 12, and 13 debtor who has expressed an intent in their plan to retain the creditor's collateral or assume the lease, and who has expressed an intent to pay the creditor directly. The creditor must provide monthly statements or other forms of invoicing (e.g., a coupon book) to each chapter 7 debtor who has expressed an intent, in their statement of intent (served on the creditor), to retain the creditor's collateral or assume the lease. The monthly statements or other forms of invoicing must contain the same, or substantially similar, information as that provided pre-petition.

(f) Forms of Communication Generally. A creditor will have complied with this Rule if it has transmitted the requisite monthly statements, other forms of invoicing, or additional requested information to the debtor in the manner normally used by the creditor.

(g) Waiver of Strict Compliance. If a creditor uses a billing system that provides monthly statements or other forms of invoicing that substantially comply with this Rule but do not fully conform to all its requirements, the creditor may request that the debtor accept such monthly statements or other forms of invoicing. If the debtor declines to accept non-conforming monthly statements or invoices, the creditor may file a motion, on notice to the debtor and the debtor's attorney (if any), requesting permission to issue non-conforming monthly statements or invoices, for either a limited or unlimited time, in full satisfaction of the creditor's obligation under this Rule. The creditor will only be eligible for a waiver if the proposed monthly statements or invoices substantially comply with this Rule and the creditor demonstrates it would be an undue hardship to strictly comply with this Rule.

(h) Motion to Compel Compliance. A debtor may file a motion to compel a creditor's compliance with this Rule if the debtor has evidence that a creditor has not complied with this Rule for at least 30 days. However, the debtor must first make a good faith effort to contact the creditor to determine the cause for non-compliance, including inquiring about the status of the creditor's efforts to provide statements in compliance with this Rule, before filing a motion to compel compliance. The debtor's motion to compel must include a description of (1) the debtor's pre-motion good faith effort(s), (2) any response by the creditor, and (3) any harm the debtor has suffered as a result of the creditor's non-compliance.