Local Rule Rule 3001-2: Adjustment in a Periodic Payment on a Secured Claim in Chapter 13

Rule 3001-2 Adjustment in a Periodic Payment on a Secured Claim in Chapter 13

(a) Creditor's Notice. A creditor with a claim under § 1322(b)(5) or (b)(7) that is not governed by F.R.Bankr.P. 3002.1 must file and serve on the debtor, debtor's counsel and the trustee, a notice of any proposed increase or decrease of periodic payments and file a certificate of service. The deadline to file this notice is 21 days before the effective date of the adjustment of the payment amount. The notice must fully disclose the calculations on which the adjustment is based.

(b) Objection. A party objecting to a creditor's notice under subpart (a) or to a notice of mortgage payment change filed under F.R.Bankr.P. 3002.1(b) must file a motion within 21 days after service of the notice to request a determination by the court. If a motion is filed, the court will schedule a hearing with notice to the debtor, the creditor and the trustee.

(c) Effective Date of Proposed Change. A proposed payment change under subpart (a) or under F.R.Bankr.P. 3002.1(b) will be effective 21 days after service of the notice, unless the court orders otherwise.

(d) Notice of Inability to Comply with Timing Requirements. This subpart (d) applies to a creditor whose claim is secured by a mortgage for which the amount of the debtor's payment obligations is subject to change more frequently than once every 60 days. Such a creditor may file a "Notice of Inability To Comply With Local Rule 3001-2(a) Deadline" as an attachment to any statement of proposed payment change filed under subpart (a) of this Local Rule. Upon the filing of a notice under this subpart (d), unless there is an objection filed within 14 days or the court orders otherwise, the trustee must effectuate the payment change stated in the notice of payment change.