Local Rule L.R. 3015-1: Chapter 12 Plans – Plan Contents.

L.R. 3015-1 – Chapter 12 Plans – Plan Contents. A. Payments to Trustee for Fees. In any case where there is not a standing Trustee, the Chapter 12 plan must provide for payment to the Trustee of 5% of any and all payments under the plan unless otherwise agreed to in writing by the Chapter 12 Trustee. Such funds will be in addition to the amount paid to secured creditors. Unless otherwise provided in a confirmed Chapter 12 plan, the Trustee will hold such funds until the Court allows compensation to the Trustee and authorizes disbursement of such funds to the Trustee. If excess funds remain after the plan is fully performed and all allowed fees and expenses are paid, the Trustee will distribute such funds in accordance with the plan.

B. "Reasonable Time" to Cure Defaults under Bankruptcy Code § 1222(b)(5). Absent a showing of cause or the written consent of the mortgagee, the "reasonable time" referred to in Bankruptcy Code § 1222(b)(5) will be the term of the plan, not to exceed four (4) years. Consent of the mortgagee to any other time period must be in writing, filed with the Court, and served on the Trustee prior to the hearing on confirmation of the plan.

C. Turnover of Collateral. When a Chapter 12 plan states that the debtor will surrender collateral to a creditor, the debtor must release the collateral to the creditor within forty-five (45) days of the date of the filing of the petition. To surrender collateral, the debtor will make the collateral available to the creditor during reasonable hours and at a reasonable location. The debtor and creditor should cooperate in surrendering and recovering the collateral.

D. Treatment of Claims. Any Chapter 12 plan stating an amount owed to a creditor will be considered estimated and is not binding on the creditor. An allowed proof of claim will govern the amount of a claim, valuation of collateral, and classification of the claim. The confirmed Chapter 12 plan will control the treatment of a claim, including, the numerical rate of interest to be paid when appropriate to pay interest and whether a claim is to be paid through the plan or outside the plan by a party other than the Trustee.

E. Distribution on Secured Claims. The plan must provide for payment of secured claims by the Trustee not less frequently than annually beginning with the first distribution made by the Trustee. The plan must provide for allowed secured claims to be paid not less than annually over the plan term, or as specified in the plan, with interest as calculated under L.R. 3015-1(F) term, or as specified in the plan, with interest as calculated under L.R. 3015-1(F).

F. Interest on Secured Claims. All Chapter 12 plans must provide for payment of interest on secured claims paid through the plan and must specify the interest rate to be applied. Absent evidence to the contrary, the applicable interest rate will be the rate posted and published by the Clerk of Court as prescribed herein. The interest rate in effect at the time of the filing of the petition will remain in effect throughout the term of the case. The applicable interest rate will be determined by the Clerk of Court semi-annually as follows: 1. January 1 - June 30: For petitions filed between January 1 and June 30 of each year, the interest rate will be the prime rate on December 1 of the previous year, plus 1.5%. This rate will be posted by the Clerk of Court by December 10 or the first business day thereafter. 2. July 1 - December 31: For petitions filed between July 1 and December 31 of each year, the interest rate will be the prime rate on June 1 of the current year, plus 1.5%. This rate will be posted by the Clerk of Court by June 10 or the first business day thereafter.

G. Payments through the Plan. The plan must provide for all claims to be paid by the Trustee through the plan except as noted herein or as permitted by the Court. The following may be paid outside of the plan: 1. Claims on the home in which the debtor resides, if the claim is for: a. post-petition mortgage payments; b. post-petition mobile home payments; c. post-petition rent payments; and 2. Claims for child support arrearage if the arrearage was being paid pursuant to a pre-petition agreement and the child support creditor consents to continuation of the payment arrangement post-petition. Consent of the creditor must be in writing, filed with the Court and served on the Trustee prior to the hearing on confirmation of the plan.