Local Rule L.R. 3015-2: Chapter 13 Plans - Plan Contents.

L.R. 3015-2 - Chapter 13 Plans - Plan Contents. A. "Reasonable Time" to Cure Defaults under Bankruptcy Code § 1322(b)(5). The duration to cure pre-petition arrearages pursuant to Bankruptcy Code § 1322(b)(5) is any length of time not to exceed the life of the plan.

B. Turnover of Collateral. When a Chapter 13 plan states that the debtor will surrender collateral to a creditor, the debtor must release the collateral to the creditor within twenty-one (21) days of the date of the order confirming the plan. 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.

C. Minimum Distribution to Unsecured Creditors. The plan must state a minimum sum guaranteed for distribution to holders of non-priority, unsecured claims. Such minimum must be 100% or a fixed dollar amount. Such amount will constitute a minimum distribution only.

D. Payments by the Debtor Directly to the Creditor. The plan must provide for all claims to be paid by the Trustee directly to creditors except as provided herein or as permitted by the Court. The following may be paid by the debtor directly to the holders of: 1. Claims on the home in which the debtor resides, if the claim is for post-petition mortgage payments or post-petition mobile home payments. 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. 3. Lease payments related to any assumed executory contracts for real property.

E. Interest on Secured Claims. All Chapter 13 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.

F. Monthly Payments. Unless otherwise permitted by the Court, the plan must provide for the debtor to make regular monthly payments to the Trustee. Such monthly payments must not be less than $75.00.

G. Payment of Chapter 13 Attorneys Fees through Plan. The debtors' attorney's fees will be paid by the Trustee after monthly payments to secured creditors. However, a maximum of $2,900.00 in attorney fees, minus any attorney fees paid directly by the debtor, may be paid after monthly payments for post-petition real estate contract payments, post-petition executory contract payments, and unassigned domestic support obligation payments. Such fees will be paid in equal monthly payments over eighteen (18) or more months. Any attorney fees owed and not paid or payable in equal monthly payments as stated above will be paid as a lump sum at a disbursement level after all secured claims. If an attorney chooses to amend a confirmed plan to add a provision for payment of some fees in equal monthly payments, the Trustee will establish the monthly payment by dividing the fees remaining to be paid under the paragraph by the remainder of the repayment period in the paragraph.

H. Valuation and Treatment of Secured Vehicle Claims. Absent evidence to the contrary, the Court presumes an automobile will depreciate at a rate of 1.5% of the vehicle's value per month. The plan must compensate secured creditors for this rate of depreciation. Absent evidence to the contrary, for purposes of 11 U.S.C. § 506, the Court's Vehicle Valuation Policy will be 97% of the J.D. Power Official Used Car Guide Central Edition retail value at the time of filing the petition.

I. Treatment of Claims. Any Chapter 13 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 13 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.

J. Distribution on Secured Claims. The plan must provide for payment of secured claims by the Trustee in equal monthly installments beginning with the first distribution made by the Trustee. The plan must provide for allowed secured claims to be paid in equal monthly installments over the plan term, or as specified in the plan, with interest as calculated under L.R. 3015-2(E).

K. Adequate Protection in Chapter 13 Cases. All payments required by Bankruptcy Code § 1326(a)(1) must be made to the Trustee in the amount of the monthly payment provided in the debtor's plan or scheduled in a lease of personal property. Such payments will be paid in the ordinary course of the Trustee's business to the secured creditor. The Trustee will make such payments from funds not designated by the plan for payment to other creditors. Creditors may file objections to the amount of such payments. Pending a hearing and contrary ruling, the Trustee will pay out such sums to the creditor or lessor as provided in this Rule. In determining the monthly payment amount the Court presumes depreciation and valuation as specified in L.R. 3015-2(H).