Local Rule 3002-1: PROOFS OF CLAIM AND NOTICES RELATING TO CLAIMS SECURED BY SECURITY INTEREST IN THE DEBTOR'S PRINCIPAL RESIDENCE

3002-1 PROOFS OF CLAIM AND NOTICES RELATING TO CLAIMS SECURED BY SECURITY INTEREST IN THE DEBTOR'S PRINCIPAL RESIDENCE

(A) NOTICE OF ADJUSTMENT TO PAYMENT AMOUNT. In a Chapter 13 case, if a claim secured by a security interest in the debtor's principal residence is provided for under the debtor's plan, pursuant to 11 U.S.C. § 1322(b)(5), the holder of the claim shall file and serve on the debtor, debtor's counsel, and the standing Chapter 13 trustee notice of any post-petition adjustment to the regular contractual payment amount for the claim, including any change that results from adjustments to the interest rate or escrow account, no later than thirty-five (35) days before a payment at the adjusted amount is due. The holder of the claim shall also amend the holder's proof of claim to include the notice as a supplement to the proof of claim. This notice shall not be subject to Rule 3001(f) of the Federal Rules of Bankruptcy Procedure. Service of this notice on the trustee, the debtor, or debtor's counsel is not a violation of the automatic stay provided by 11 U.S.C. §362.

(B) FORM AND CONTENT. A notice filed under subdivision (a) of this local rule shall conform substantially to the form of notice under applicable non-bankruptcy law and the underlying agreement that would be given if the debtor were not a debtor in bankruptcy.

(C) PAYMENT BY TRUSTEE. Upon receipt of a notice filed under subdivision (a) of this local rule, the standing Chapter 13 trustee and the debtor are authorized to object to the adjustment in payment amount, or the Trustee is further authorized to disburse the adjusted payment amount when due without seeking a formal modification of the plan. If the disbursement of the adjusted payment amount causes the plan to fail to meet the minimum standards for confirmation set forth in 11 U.S.C. § 1325, then the standing Chapter 13 trustee or the debtor may seek a modification of the plan pursuant to 11 U.S.C. § 1329, or file a motion to dismiss or convert the case into a case under Chapter 7 of the Bankruptcy Code.

(D) SUPPLEMENTAL INFORMATION IN PROOF OF CLAIM. In a Chapter 13 case, with respect to a claim secured by a security interest in the debtor's principal residence, a proof of claim filed by the holder of the claim shall include the following information in addition to the information required by Rule 3001 of the Federal Rules of Bankruptcy Procedure:

(1) All missed pre-petition payments, including the dates of the missed payments, along with a total dollar amount resulting therefrom;

(2) An escrow account balance, including any funds advanced by the creditor on behalf of the debtor as of the date the petition was filed, unless already included in (d)(1); (3) if the claim includes interest, fees, expenses, or other charges incurred pre-petition, an itemized statement of any such interest, fees, expenses, or other charges; (4) if any amounts paid by the debtor pre-petition to the holder of the claim pre-petition are maintained or held by the creditor in any account and not applied, a statement of such account(s) as of the date of the petition; (5) a total of all pre-petition debt not included above, with a breakdown of each of the items included therein; and (6) the total of items (1) through (5) above.

(E) NOTICE OF FEES, EXPENSES, AND CHARGES. In a Chapter 13 case, if a claim secured by a security interest in the debtor's principal residence is provided for under the debtor's plan, pursuant to 11 U.S.C. § 1322(b)(5), the holder of the claim shall file and serve on the debtor, debtor's counsel, and the standing Chapter 13 trustee a notice that itemizes all post-petition fees, expenses, and charges incurred in connection with the claim and that the holder of the claim asserts are recoverable against the debtor or against the debtor's principal residence under any applicable contract or non-bankruptcy law. This notice shall be filed and served no later than one (1) year after the date when the fees, expenses, or charges are incurred. The holder of the claim shall also amend the holder's proof of claim to include the notice as a supplement to the proof of claim no later than one (1) year after the date when the fees, expenses, or charges reflected on the notice are incurred. This notice shall not be subject to Rule 3001(f) of the Federal Rules of Bankruptcy Procedure. Service of this notice on the trustee, the debtor, or debtor's counsel is not a violation of the automatic stay provided by 11 U.S.C. §362.

(F) FAILURE TO FILE REQUIRED NOTICES. If the holder of a claim secured by a security interest in the debtor's principal residence that is provided for under the debtor's plan fails to timely provide the information required in subdivisions (a), (d), and (e) of this local rule, the holder shall be precluded from presenting the omitted information, in any form, as evidence in any hearing on a contested matter or adversary proceeding in the case, unless the court determines that the failure was substantially justified or is harmless. In addition to or in lieu of this sanction, the court may, after notice and hearing, award other appropriate relief, including reasonable expenses and attorney's fees caused by the failure.