Local Rule 3015-2: CHAPTER 13 PLAN REQUIREMENTS

RULE 3015-2 CHAPTER 13 PLAN REQUIREMENTS

(A) Form of Plan; Inclusion of Related Motions: The only acceptable form for a chapter 13 plan shall be that form approved by the Court (Exhibit 1 to these Local Bankruptcy Rules) and available from the Clerk upon request or from the Court's Internet web site, www.vaeb.uscourts.gov. Counsel are encouraged, however, to delete the text of inapplicable sections from the plan provided that the section numbering and section headings are retained, followed by an appropriate notation such as "None" or "Not Applicable". If applicable, and without prejudice to a debtor's right to file a stand-alone motion seeking the same relief, the plan shall include the following related motions:

(1) Motion for Determination of Value Pursuant to 11 U.S.C. §506(a).

(2) Motion for Lien Avoidance Pursuant to 11 U.S.C. § 522(f): (Lien avoidance under any other provision of the Bankruptcy Code must be by separate adversary proceeding and requires service of a summons and complaint.)

(3) Motion for Assumption or Rejection of Executory Contracts Pursuant to 11 U.S.C. § 365.

(B) Special Notice to Secured Creditors Whose Collateral is to be Valued or Lien Avoided: Unless a stand-alone motion and appropriate notice is served on the affected creditor at the same time as the plan is filed with the Clerk and transmitted to creditors, the debtor shall serve on each creditor who is the subject of an included motion for valuation under 11 U.S.C. §506(a) or an included motion for lien avoidance under 11 U.S.C. §522(f) a copy of the plan to which is attached a notice in the form approved by the Court (Exhibit 2 to these Local Bankruptcy Rules). Service of the plan and special notice must be made in the manner provided for in FRBP 7004.

(C) Filing of Original Chapter 13 Plan and Related Motions

(1) Possible Dismissal of Case; Notice: The Chapter 13 Plan and Related Motions and any special notice to secured creditors required by this rule shall be filed with the Clerk not later than 14 days after the commencement of the case if the case was originally filed under chapter 13 or 14 days after the order converting the case to chapter 13 from some other chapter. If the same is not filed on the date of commencement of the case or the date of entry of the conversion order, the Clerk shall issue a notice that the debtor either must (a) timely file a plan or a motion to extend time to file a plan in accordance with this subparagraph; or (b) attend a hearing to explain why the case should not be dismissed, unless excused by the Court or the Court deems the deficiency cured and cancels the hearing.

(2) Proof of Service to include names and addresses of all parties served: The Chapter 13 Plan and Related Motions must contain a proof of service setting forth the date and manner of service and the names and addresses of all parties to whom the plan was mailed or transmitted.

(3) Extension of Time to File Chapter 13 Plan and Related Motions

(a) A first motion to extend the time to file a Chapter 13 Plan and Related Motions may be granted by the Clerk for an additional 14 days, if

(i) the motion for extension has been filed before the initial due date has expired and

(ii) notice of the motion has been given by the debtor to the trustee and all creditors.

No response deadline is required for a first motion to extend time under this subparagraph.

(b) The Clerk's order shall provide that the debtor either must (i) file the Chapter 13 Plan and Related Motions or further motion to extend time for the same by the date set forth therein; or (ii) attend a hearing to explain why the case should not be dismissed, unless excused by the Court or the Court deems the deficiency cured and cancels the hearing.

(c) Any motion to which subparagraph (C)(3)(a) hereof does not apply must be scheduled for hearing in accordance with LBR 9013-1(H)(3) and notice must be given in accordance with LBR 9013-1(M)(2) to the parties set forth in subparagraph (C)(3)(a)(ii) of this Local Bankruptcy Rule.

(D) Distribution of Chapter 13 Plan and Related Motions: The debtor shall distribute a copy of the original Chapter 13 Plan and Related Motions to all creditors, the standing trustee and other parties in interest at or prior to the time it is filed with the court. Upon receipt of the confirmation date, time and location, the debtor shall serve on affected creditors the special notice required by paragraph (B) of this Local Bankruptcy Rule.

(E) Objections to Confirmation of Original Chapter 13 Plan or to Related Motions

(1) Deadline for Filing: Any objection to confirmation of the Chapter 13 Plan or to the granting of any included Motion for Determination of Value, Motion for Lien Avoidance, or the Motion to Assume or Reject Executory Contract or Unexpired Lease shall be filed not later than 7 days prior to the date set for the confirmation hearing. Any extension of the original objection period must be requested by motion.

(2) Service of Objection: The objecting party shall file an original objection with the Court and serve copies on the standing trustee, the debtor and the debtor's attorney. The objection shall be accompanied by proof of service evidencing compliance with this requirement.

(3) Hearings on Objections: All timely filed objections shall be heard at the confirmation hearing as set forth in the notice of meeting of creditors.

(F) Modified Chapter 13 Plan and Related Motions

(1) Procedure where no plan has been confirmed

(a) Time for Filing: Unless confirmation of a prior plan has been denied, a modified plan may be filed at any time prior to confirmation. If confirmation of a prior plan has been denied, a modified plan must be filed within the period stated in paragraph (H) of this Local Bankruptcy Rule unless the order denying confirmation states some other period.

(b) Distribution of Modified Chapter 13 Plan and Related Motions: The modified Chapter 13 Plan and Related Motions, and any special notice required by paragraph (B) of this Local Bankruptcy Rule, must be distributed and served in the same manner as the original plan. The special notice required by paragraph (B) of this Local Bankruptcy Rule need not be given, however, if an order has previously been entered granting the relief sought and the modified plan does not contain any provision inconsistent with the order previously entered.

(c) Objections to Confirmation of Modified Chapter 13 Plan and Related Motions: If a modified Chapter 13 Plan and Related Motions is filed, any objections must be filed not later than 7 days prior to the date set for the confirmation hearing. The debtor must select a new confirmation hearing date and include the new date, time and location on the first page of the form of Chapter 13 Plan and Related Motions. The new confirmation hearing date shall not be earlier than the date originally set for the confirmation of the original plan filed in the case and must allow at least 35 days' notice. The debtor shall give notice of the date, time and place of the confirmation hearing by serving a copy of the modified plan on the trustee and all creditors.

(d) Effect on a Hearing Scheduled on Objection(s) to any Previously Filed Unconfirmed Plan

(i) Once a modified plan and related motions has been filed by the debtor, all previously filed unconfirmed plans and related motions are deemed withdrawn.

(ii) The filing of a modified plan and related motions will remove a previously scheduled hearing on objection to confirmation from the court calendar without further order of the Court, but without prejudice to any party's right to object to the modified plan.

(2) Procedure when a plan has been confirmed

(a) When modification is requested by the trustee or a creditor: If modification of a confirmed plan is sought by the trustee or by a creditor, the modification must be requested by motion. A hearing date shall be selected by the movant and at least 21 days' notice of the hearing shall be given to the debtor, debtor's counsel, the trustee (if the trustee is not the movant) and all creditors. The time for filing any response is governed by LBR 9013-1(G)(3).

(b) When modification is requested by the debtor: If modification of a confirmed plan is sought by the debtor, modification must be requested by filing and distributing a modified Chapter 13 Plan and Related Motions and by giving special notice required by paragraph (B) of this Local Bankruptcy Rule. The special notice required by paragraph (B) of this Local Bankruptcy Rule need not be given, however, if a Chapter 13 Plan and Related Motions has previously been confirmed providing the identical treatment of the secured creditor's claim. The debtor must select a new confirmation hearing date, which date must allow at least 35 days' notice. The debtor shall give notice of the date, time and place of the confirmation hearing as set forth on the first page of the form of Chapter 13 Plan and Related Motions by serving a copy of the modified plan on the trustee and all creditors. Any objection to the modified plan must be filed not later than 7 days prior to the date set for the confirmation hearing.

(G) Confirmation of Plan and Granting of Related Motions: After the time for filing objections has passed and if no objection has been timely filed, the Court may enter an order confirming the plan and granting the relief sought in the related motions without holding a hearing, or the Court may direct that a hearing be held.

(H) Dismissal of Case upon Denial of Confirmation: If the Court denies confirmation of the debtor's original or subsequently modified Chapter 13 Plan and Related Motions at a hearing on an objection to confirmation, unless the Court has entered an order previously confirming a plan, the Clerk is directed to issue an order dismissing the chapter 13 case unless, within 21 days after denial of confirmation:

(1) the debtor files a new Modified Chapter 13 Plan and Related Motions;

(2) the debtor converts or moves to convert the case to another chapter of the Bankruptcy Code;

(3) the debtor files a motion for reconsideration or appeals the denial of confirmation; or

(4) the Court otherwise orders.

An order previously entered by the Court confirming a chapter 13 plan shall remain in full force and effect if a subsequently modified Chapter 13 Plan and Related Motions is denied confirmation by the Court.

(I) Reconversion of Case: [Repealed]

Comments Rule 3015-2 Revised Chapter 13 Form Plan:

Since February 15, 1988, the Eastern District of Virginia has required that chapter 13 plans follow a prescribed format. See In re Walat, 87 B.R. 408 (Bankr.E.D. Va 1988) (en banc), aff'd 89 B.R. 11 (E.D. Va. 1988). Following the Fourth Circuit's decisions in Piedmont Trust Bank v. Linkous (In re Linkous), 990 F.2d 160 (4th Cir. 1993) and Cen-Pen Corp. v. Hanson, 58 F.3d 89 (4th Cir. 1995), the form plan was expanded to include "related" motions to value collateral and avoid liens, and a separate "Notice of Chapter 13 Plan and related Motions" was adopted for service on creditors in addition to the plan itself.

In 2003, the National Association of Chapter 13 Trustees recommended a model form of chapter 13 plan which had been drafted at an Advanced Practice Institute by a group of debtors' counsel, trustees, creditors' representatives, attorneys and others.

After the chapter 13 trustees in the Western District of Virginia proposed a variant of this model plan for adoption in that district, a working group of one judge and one chapter 13 trustee from each district proposed further modifications that would allow the same form of plan to be used in each district. After a period of public comment and a trial use of the model plan at a Virginia CLE Advanced Consumer Bankruptcy Seminar, a redrafted proposal was prepared by the chapter 13 trustees of both districts. This proposal, with some minor changes agreed to by the judges of both districts at two joint meetings, resulted in the current plan.

Adoption of a uniform plan is expected to benefit state-wide and national creditors (who would have only one form of plan from Virginia to decipher) as well as attorneys who practice in both districts and would no longer have to separately configure their form preparation software for each district. Because it is shorter than the existing Eastern District of Virginia plan, it should also be significantly easier for pro se parties (many of whom struggle with the current form of plan) to fill out.

The revised plan, like the previous plan, incorporates "related" motions to value collateral and avoid liens. To satisfy the due-process concerns in Linkous and Cen-Pen, a separate "special" notice must be attached to the copy of the plan mailed to the creditors that are the subject of those motions. [Rule effective 10/17/05.]

3015-2 Subparagraphs (F)(1)(c) and F(2)(b) have been amended to include the date, time, and place of the confirmation hearing when a modified plan is being filed. The first page of the uniform Chapter 13 Form of Plan and Related Motions has been revised to include this change. [Changes effective 9/1/06.]

3015-2(I) This paragraph is new. It provides that a Chapter 13 Plan approved by the Court in the original Chapter 13 case, if any, is deemed reinstated with full force and effect when that case reconverts back to Chapter 13. [New rule effective 3/17/08.]

3015-2 Time-computation adjustments have been made, as needed, to conform to a revision to the Federal Rules of Bankruptcy Procedure that takes effect December 1, 2009. Stylistic changes have been made to the text of the LBR as well. [Changes effective 12/01/09.]

3015-2 (E)(1), (F)(1)(c) and (F)(2)(b) The notice required for a new confirmation hearing date conforms to the time-computation changes made to paragraphs (E)(1), (F)(1)(c) and (F)(2)(b). [Changes effective 2/09/09.]

3015-2 (I) The text at paragraph (I) has been removed as no longer being required. [Repeal effective 12/01/09.]

3015-2 Subparagraphs (F)(1)(d) and (G)(1) and (2) are amended in light of the referenced change in procedure for the Norfolk and Newport News Divisions. (See combined Norfolk Standing Order No. 18-1 and Newport News Standing Order No. 18-1, which was entered on October 29, 2018, and provides that, "Confirmation Hearings will be held with regard to all Chapter 13 original and amended plans filed on or after October 29, 2018," in the aforesaid divisions of the Court.) Paragraph (H)(1) is eliminated in light of the revisions to paragraph (C). Paragraphs (H)(2) and (H)(3) are redesignated as paragraphs (H)(1) and (H)(2), respectively. [Changes effective 11/15/19.]

3015-2 Paragraphs (C)(1) and (3) are amended as a result of the holding in No v. Gorman, 891 F.3d 138 (4th Cir. 2018). [Changes effective 11/15/19.]

3015-2 Paragraph (G)(1) is amended and paragraph (G)(2) is deleted so the referenced procedure is the same in all divisions of the Court. [Change effective 06/01/23.]

3015-2(C) The amendments to subparagraphs (1) and (3)(b) of this rule remove language concerning the filing of a response; and to permit the Court to either excuse a debtor from the deficiency hearing or to cancel the hearing if appropriate in the event of an untimely cured deficiency. Subparagraph (3)(a) is amended to clarify that a response period is not required for a first motion to extend time, so long as the motion otherwise meets the paragraph's requirements, to align the rule with simultaneous changes to Rules 1007-1, 1007-3 and 9013-1. Finally, amendments to subparagraph 3(c) clarify that a hearing is required on a motion filed pursuant to Rule 3015-2(C)(3) to which subparagraph (3)(a) does not apply and the responsibility of the movant to schedule and give notice of such hearing in accordance with Rule 9013-1. [Changes effective 08/01/23.]

3015-2(F) This rule is amended to clarify that the proponent of the modified plan (either debtor or moving party) must select a hearing date and schedule same. A technical amendment is also made to conform to the amendments made to paragraph (H) of the rule. [Changes effective 08/01/23.]

3015-2(H) Current Rule 3015-2(H)(1) is deleted, as the reference to the Clerk providing notice of the possible dismissal of a case for failure to timely file a Chapter 13 Plan and Related Motions is duplicative of language already contained in paragraph (C)(1) of the Rule, and the directive that the Clerk provide notice of the rule in the notice of the meeting of creditors is unnecessary. The remainder of the Rule is redesignated as (H)(1)-(4), inclusive, and is amended to clarify that the Clerk shall enter an order dismissing a chapter 13 case only where confirmation is denied at a hearing on an objection to confirmation, provided a plan has not been confirmed previously. [Change effective 08/01/23.]