Local Rule 3012–1: VALUATION OF COLLATERAL — (PERSONAL PROPERTY IN CHAPTER 13 CASES)

3012–1 VALUATION OF COLLATERAL ― (PERSONAL PROPERTY IN CHAPTER 13 CASES)

Objections to the value of personal property in chapter 13 cases are governed by this Local Rule.

(a) General Rule. Unless otherwise ordered by the court, stipulated between the parties, or evidenced by uncontested appraisal, personal property secured by valid consensual or judicial liens shall be valued for purposes of § 506(a) of the Code at the lower of the claimant's representation on its proof of claim or the debtor's representation in the chapter 13 plan. Any amount by which a proof of claim exceeds that valuation shall be allowed and treated as an unsecured claim unless otherwise ordered.

(ba) Objection and Hearing.

(1) Form of Objection. An objection to value or an objection to confirmation based on value in an original or amended plan shall be in writing and shall identify specific items of property to which the objection relates. Blanket objections are not permitted. The objection shall set forth the value that the debtor places on the property and the value that the creditor places on the property.

(2) Time of Hearing. A written objection to value is treated as an objection to confirmation, is heard at the time of confirmation, and is governed by LBR 3015–3(a).

(cb) Time to Object. An objection to confirmation based on the value of personal property and upon which there is a consensual or judicial lien, or an objection for failure to list an item of personal property as being secured by a consensual or judicial lien and to indicate a value therefor, shall be filed and served on the trustee, United States trustee, the debtor, and the debtor's attorney within fourteen (14) days after the § 341 meeting is concluded. If the objection is filed after the deadline, it must be accompanied by a separate motion to file objection out of time. The motion must state a valid reason for the delay and must be served on the same entities as the objection. For cases heard in any satellite location, the notice to creditors of the filing of the petition and meeting of creditors may authorize a different date for filing objections to confirmation based on valuation.

(dc) Appraisals and Other Evidence of Value.

(1) Time of Appraisal. The creditor's attorney is encouraged to attend the § 341 meeting of creditors. If there is no agreement as to the value of the property at the conclusion of the § 341 meeting of creditors, the creditor's attorney and the debtor's attorney shall hold a settlement conference and cooperate in arranging for a timely appraisal. Failure by the creditor's attorney, the debtor's attorney, or the debtor to cooperate may result in the imposition of sanctions.

(2) Service of Appraisal. The creditor shall file and serve on the debtor, the debtor's attorney, the trustee and the United States trustee a copy of the appraisal within fourteen (14) days after the § 341 meeting of creditors.

(3) Motor Vehicles. Nationally recognized value guides for the month the debtor's petition was filed may be used as evidence of value.

(ed) Resolution of Objection by Agreement. If an objection to value or an objection to confirmation based on value is resolved by agreement, a stipulation determining the value and withdrawing the objection shall be signed by the parties and the trustee and filed.