Local Rule 6004-3: SALE OR REFINANCE OF PROPERTY BY CHAPTER 13 DEBTOR AFTER CONFIRMATION

RULE 6004-3 SALE OR REFINANCE OF PROPERTY BY CHAPTER 13 DEBTOR AFTER CONFIRMATION

(A) A debtor intending to sell or refinance real property following confirmation of a plan shall file a motion and shall provide the chapter 13 trustee and all creditors and parties in interest at least 21 days' notice of the motion seeking such approval unless the notice period has been shortened by the Court for cause shown.

(B) In addition to setting forth the information required by FRBP 2002(c)(1), the notice shall state:

(1) the total proposed sale price or maximum amount to be secured by the refinancing, as the case may be, and, in the case of refinancing, the amount of existing secured debt to be paid thereby;

(2) the amount of the sale or loan proceeds to be applied to the debtor's obligations under the confirmed plan;

(3) whether such payment will result in full payment of all allowed claims; and

(4) if all allowed claims will not be paid in full, the amount of the sale or loan proceeds that will be paid to the debtor.

(C) If no objection is filed within the objection period, the court, in its discretion, may enter an order endorsed by the chapter 13 trustee approving the sale or refinance without holding a hearing.

Comments 6004-3 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 Rule. [Changes effective 12/01/09.]

6004-3 Amendments have been made regarding vesting of property at confirmation, to conform with Trantham v. Tate (In re Trantham), 112 F.4th 223 (4th Cir. 2024). [Changes effective 1/20/25.]