Local Rule RULE 4070-1: INSURANCE

RULE 4070-1 INSURANCE When a debtor in a Chapter 13 case proposes to retain and pay for a motor vehicle in which a creditor has a security or leasehold interest, then the collateral must be insured while a debtor is in bankruptcy. The following procedures will apply concerning insurance:

(a) If the creditor does not have in its file proof of insurance which names the creditor as lienholder and which insures the collateral, then the creditor may electronically file a Notice with the Court using Local Form 9 demanding proof of insurance within fourteen (14) days. The creditor shall file the supporting loan or lease document(s) as an attachment to the Notice.

(b) If the debtor provides proof of insurance which is in effect and continuous, provides coverage of the collateral (as required under the loan, lease, and/or security documents), and names the creditor as loss payee, then the creditor will not be entitled to relief.

(c) If the creditor does not receive proof of insurance as set forth in subsection (b) of this Local Rule within fourteen (14) days of the filing of the Notice, then the creditor may submit an order lifting the stay as to the collateral. Such order must be supported by a Declaration in Support of Entry of Order using Local Form 5.

(d) If a debtor objects to the creditor obtaining an order under subsection (c) of this Local Rule, the debtor has seven (7) days from the filing of the Notice to file an objection setting forth in detail the reasons why an order is not warranted. The objection will be set for hearing on the Court's next available docket.