Local Rule L.R. 2015-2: Duty of Debtor in Chapter 13 Case.

L.R. 2015-2 - Duty of Debtor in Chapter 13 Case. A. Wage Order. If the debtor in a Chapter 13 case is employed, the Court recommends that the debtor use the Court Wage Order Program to file a virtual motion for Wage Order. This will cause the Court's CM/ECF system to automatically create the wage order. If a motion is filed outside of the Wage Order Program, a proposed order must be submitted to the Court simultaneously via the Judge's e-mail. The motion to enter wage order may be filed simultaneously with the bankruptcy petition.

B. Disclosure of Material Change in Financial Condition. The debtor in a Chapter 13 case must disclose to the Trustee and to the debtor's attorney any material change in debtor's income or expenses or acquisition of a significant asset during the life of the plan. This duty to disclose is a continuing duty throughout the life of the plan.

C. Insurance on Motor Vehicles in Chapter 13 Cases. 1. Required Coverage. The debtor in a Chapter 13 case must maintain insurance on any motor vehicle on which a lien exists to secure a debt. Absent agreement between the debtor and the lienholder, the debtor must: a. prepay at least three (3) months insurance on the vehicle if the debtor has allowed their insurance coverage on the vehicle to lapse within the previous twelve (12) months; and b. provide for the collision and comprehensive deductible to be $500.00 and provide for the insurance policy to name the lienholder as a loss payee. If the security agreement or other contract requires a deductible lower than $500.00, such contract will govern the amount of deductible the debtor is required to maintain during the bankruptcy case. 2. Proof of Insurance Coverage. The debtor in a Chapter 13 case must provide the lienholder with proof of insurance providing full coverage from the date of the bankruptcy petition. If the debtor has allowed their insurance policy to lapse within the twelve (12) months prior to the date of the bankruptcy petition, the debtor must provide the lienholder with proof of three (3) months prepaid insurance providing full coverage from the date of the bankruptcy petition. If the insurance policy lapses during the pendency of the case, the debtor is required to provide new proof of coverage, which must include proof of three (3) months prepaid insurance. A copy of the policy or the policy declaration sheet and a copy of a receipt or similar payment statement from an insurance agent on company letterhead may be used as proof of coverage if the documents verify the terms of coverage and pre-payment of premiums.