Local Rule Rule 2015-3: Trustee's Procedures Upon Chapter 13 Plan Completion

Rule 2015-3 Trustee's Procedures Upon Chapter 13 Plan Completion

(a) Procedure Leading to Entry of the Debtor's Discharge. Within 30 days after the completion of plan payments by the debtor to the trustee, the trustee must file and serve on the debtor and all holders of allowed claims a notice stating that: (1) the debtor's payments to the trustee under the plan have been completed; (2) the order of discharge will include findings that: (A) all allowed claims have been paid in accordance with the plan; and (B) with respect to any secured claim that continues beyond the term of the plan, any pre-petition or post-petition defaults have been cured; (3) the order of discharge will direct that: (A) any creditor who held a secured claim that was fully paid must execute and deliver to the debtor a release, termination statement, discharge of mortgage or other appropriate certificate suitable for recording; and (B) any creditor who holds a secured claim that continues beyond the term of the plan must take no action inconsistent with the above findings; (4) in addition to the requirements for holders of claims governed by F.R.Bankr.P. 3002.1, any party may file with the court an objection to the trustee's notice under subpart (a)(1); to assert that the debtor is not current in the payments that the debtor was authorized to make directly to a creditor; to the proposed findings as stated in subpart (a)(2); or to the proposed terms of the order of discharge as stated in subpart (a)(3). (The provisions of this subpart (a)(4) do not apply to a creditor with respect to whom the automatic stay has been terminated.); (5) the deadline to file an objection is 21 days after service of the notice. If no objection is timely filed with the court under this rule, and no statement disagreeing with the notice of final cure payment is timely filed under F.R.Bankr.P. 3002.1(g), the court may enter an order of discharge containing the provisions of subparts (a)(2) and (a)(3) without a hearing. If either a timely objection is filed with the court under this rule, or a timely statement disagreeing with the notice of final cure payment is filed under F.R.Bankr.P. 3002.1(g), the court will delay entry of the order of discharge until it resolves such objection or statement, after a hearing that will be scheduled by the court upon the filing of such objection or statement with notice to the party filing such objection or statement, the debtor and the trustee; (6) to avoid defaulting on any continuing secured debt obligation, the debtor must immediately begin making the required payments on that obligation; and (7) the chapter 13 discharge does not discharge the debtor from any obligation on any continuing secured debt payments that are due after the last contractually due payment to which the trustee's last disbursement is applied. The trustee must file a certificate of service of this notice.

(b) Additional Notice. The notice under subpart (a) must also state that unless a party timely objects under subpart (a)(4), the court may find without a hearing that there is no reasonable cause to believe that: (1) § 522(q)(1) may be applicable to the debtor; and (2) there is pending any proceeding in which the debtor may be found guilty of a felony of the kind specified in § 522(q)(1)(A) or liable for a debt of the kind described in § 522(q)(1)(B).

(c) Application. Subparts (a)(2)(B) and (a)(3)(B) will not apply to the extent that the court has entered an order providing otherwise.

(d) Trustee's Final Report and Account. Within 120 days after the trustee files the notice required under subpart (a), the trustee must file the final report and account and serve it or a summary thereof on all holders of allowed claims and file a certificate of service.

(1) The final report must state the allowed amount of each claim and the amount paid thereon.

(2) The report and any summary thereof that is served must also state that the deadline to file an objection to the trustee's final report and account is 30 days after service of the final report; that if no objection is timely filed, the trustee may be discharged and the case may be closed without a hearing; and that if a timely objection is filed, a hearing will be scheduled with notice to the objecting party, the debtor and the trustee.