Local Rule RULE 4001-2: CONDITIONAL DENIALS IN CHAPTER 13 CASES

RULE 4001-2 CONDITIONAL DENIALS IN CHAPTER 13 CASES Unless otherwise ordered by the Court, an order in a Chapter 13 case conditionally denying a motion for relief from stay (or conditionally extending or imposing the automatic stay) is subject to the requirements set out below:

(a) The future default provision must expire no later than twenty-four (24) months after entry of the conditional denial order.

(b) Termination of the stay cannot be based upon the number of default notices.

(c) With the exception of conditional denial orders permitting a return to the Court's calendar on a renewed motion, the order shall provide that the creditor must mail any notice of default to a debtor with at least twenty-one (21) days' notice to cure and file it with the Court within one (1) business day of mailing. The order shall further provide that, if the stay terminates pursuant to the terms of the conditional denial order, the creditor must file a notice of termination of stay with the Court and mail a copy to the debtor, and that the stay termination is not effective until the notices described in this paragraph are filed with the Court. The notice of termination of stay filed with the Court on CM/ECF shall relate such notice to the conditional denial order and notice of default. The notice filings required by this paragraph are for information only and will not be set for hearing.

(d) The conditional denial order must not contain a provision that the order should be binding upon a Chapter 7 trustee in the event of conversion.

(e) The conditional denial order must not contain an open-ended provision for future attorney's fees or costs in addition to the fees and costs specifically authorized in the order.

(f) The creditor must file an amended or supplemental proof of claim for any post-petition arrearage or attorney's fees authorized by the conditional denial order to be paid by the Chapter 13 Trustee. Any such proof of claim must be filed within sixty (60) days of the conditional denial order's entry. A creditor filing a proof of claim under this subsection is not required to file the notice of fees, expenses, and charges under FED. R. BANKR. P. 3002.1(c).

(g) If the denial is conditioned upon current payments being made directly to the creditor, the order must state the date of the month when payments are due. The cure period after notice of default must be at least twenty-one (21) days from the date of mailing.

(h) If the denial is conditioned upon plan payments being made to the Chapter 13 Trustee, the order must not provide that the debtor is in default prior to the end of the month in which the plan payment is due. The cure period after notice of default must be at least twenty-one (21) days from the date of mailing. The Chapter 13 Trustee's records shall control as to the date payment was received.