Local Rule 3070-1: CHAPTER 13 - PAYMENTS
Bankr. E.D.N.C. — General rule
Rule 3070-1 CHAPTER 13 - PAYMENTS
(a) RETURN OF PLAN PAYMENTS TO DEBTOR. Subject to subsections (b) and (d) below, upon conversion or dismissal of a chapter 13 case prior to confirmation, and unless the court orders otherwise, the standing trustee shall return to the debtor any payments made by the debtor under the proposed plan.
(b) ATTORNEYS FEES IN A DISMISSED UNCONFIRMED CHAPTER 13 CASE.
(1) Upon the entry of an order of dismissal in a chapter 13 case prior to a plan being confirmed, and unless other arrangements are made with the debtor for compensation, counsel for the debtor shall have 14 days from the entry of the order of dismissal within which to file an application for attorney fees ("Application"). The Application shall be served upon the debtor and the chapter 13 trustee, and those parties-in-interest shall have 14 days, including any days for mailing, to respond.
(2) The chapter 13 trustee shall not make any disbursement until the 14 day period for filing the Application has expired. If an Application is timely filed, the trustee shall continue to hold the funds in trust and shall not make final disbursement until the court rules on the Application.
(c) ADEQUATE PROTECTION PAYMENTS TO SECURED CREDITORS AND DIRECT PAYMENTS TO LESSORS.
(1) The debtor shall pay directly to the lessor all payments scheduled in a lease of personal property for that portion of the obligation that becomes due after the order for relief.
(2) Unless the chapter 13 plan provides that the entire secured claim is to be paid directly by the debtor to the creditor, the debtor shall pay to a creditor, who holds an allowed claim secured by personal property to the extent that the claim is attributable to the purchase of the property by the debtor, pre-confirmation adequate protection payments through the chapter 13 trustee; however, the court may order payments to be made by any other method.
(3) The presumptive adequate protection payment to be paid pursuant to Section 1326(a)(1) shall be at least one percent (1%) of the value of the subject collateral at the discretion of the chapter 13 trustee as of the petition date. The valuation of the collateral shall be made solely by the chapter 13 trustee, subject to further court consideration.
(4) All adequate protection payments paid through the chapter 13 trustee shall be subject to an administrative fee in favor of the trustee equal to the trustee's statutory percentage commission then in effect, and the trustee shall collect the fee at the time of the distribution of the adequate protection payment to the claimant.
(5) The chapter 13 trustee shall make adequate protection payments to the creditor at the address duly noted on the proof of claim. The use of the address shall be deemed proper notice of the creditors for purpose of the adequate protection payments.
(6) The chapter 13 trustee shall not be required to make pre-confirmation adequate protection payments on account of any claim for which the secured value of the claim is less than $2,000.00.
(7) All adequate protection payments made through the chapter 13 trustee shall be disbursed in the ordinary course of the trustee's business, according to the trustee's standard monthly distribution schedule, from funds in the case as they become available for distribution to claimants prior to or after entry of the Order Confirming Plan.
(8) Subsections (c)(2) and (c)(3) of this rule shall not apply if the adequate protection is provided by means other than by direct payments to the holder of the secured claim.
(d) CHAPTER 13 TRUSTEE'S ADMINISTRATIVE FEE IN CHAPTER 13 CASES DISMISSED PRIOR TO CONFIRMATION.
(1) An administrative fee is authorized for the chapter 13 trustee in cases dismissed prior to confirmation in the amount set forth in the Administrative Guide.
(2) The fee shall be payable from payments made by the debtor(s) and held by the trustee at the time of case dismissal.
(3) The trustee who has incurred actual costs and expenses in excess of the standard administrative fee may apply under 11 U.S.C. § 503(a) for reimbursement of these additional costs and expenses from funds paid by the debtor to the trustee.