Local Rule LBR 3015: Chapter 12 and 13 Plans

LBR 3015: Chapter 12 and 13 Plans

(a) Service of § 341 Meeting Notices and Plans. Except as otherwise provided in this subsection, the Clerk will serve the § 341 meeting notice and a copy of the debtor's original plan or plan summary on all creditors and parties in interest listed on the mailing matrix. To the extent applicable, nothing in this Rule excuses compliance with Fed. R. Bankr. P. 7004. If the debtor fails to file a mailing matrix with the petition or if the debtor adds creditors to the mailing matrix after the case is filed, then the debtor must serve the § 341 meeting notice and a copy of the debtor's plan or plan summary on all creditors and other parties in interest or on the newly added creditors, as the case may be. The debtor must also file a proof of service.

(b) Dismissal When Debtor Fails to File Schedules, Statements, or a Plan. If a debtor files a Chapter 13 petition but does not also file the schedules and statements as required by Fed. R. Bankr. P. 1007(b) or a plan as required by Fed. R. Bankr. P. 3015(b), the Court may send the debtor and debtor's attorney a notice stating that the case may be dismissed without further hearing unless:

(1) the debtor files the required documents within 14 days of the filing of the petition;

(2) the debtor moves for an extension of time to file the required documents within 14 days of filing the petition; or

(3) the case has been converted to Chapter 13 from another chapter of the Code.

(c) Payroll Deduction Orders in Chapter 13 Cases. A payroll deduction order must be entered in every Chapter 13 case unless it would be impossible or impractical. Exception from the payroll deduction order requirement may be permitted by the Chapter 13 trustee based upon information provided, as well as a debtor's testimony, at the First Meeting of Creditors held pursuant to § 341. If the Chapter 13 trustee will not agree that Chapter 13 plan payments may be made by a method other than a payroll deduction order, the debtor may seek relief from the requirement by filing a motion showing good cause why a payroll order should not be entered. (The Payroll Order form is appended to these Rules as Exhibit 7.)

(d) Model Chapter 13 Plan.

(1) Mandatory Use. The Court will maintain on its website a Chapter 13 plan adopted by the Chapter 13 trustees that will serve as a model for drafting Chapter 13 plans in this district. Absent exceptional circumstances, a Chapter 13 debtor must use the model plan but may make modifications to the plan to meet his or her particular needs. If a modification is made, the modification must be conspicuously described in Section IV.R. of the model plan unless the modification has otherwise been excepted from disclosure by the Chapter 13 trustee assigned to the case. (The Model Chapter 13 Plan is appended to these Rules as Exhibit 8.)

(2) Future Amendments. The Chapter 13 trustees will regularly consult with attorneys who represent debtors and creditors in Chapter 13 cases in this district to discuss any needed changes to the model plan. Unless otherwise ordered by the Court, amendments may not be made more than once a year, with the Chapter 13 trustees submitting proposed amendments, if any, to the Court for final approval in August of each year.

(e) Pre-Confirmation Amendments to Plans.

(1) Amendment Numbering. All pre-confirmation amendments to a plan must be numbered chronologically and entitled "First Pre-Confirmation Plan Amendment . . . , Second Pre-Confirmation Plan Amendment . . .", etc.

(2) Preamble Amendments. If an amendment is being filed in its entirety to correct the preamble to the Chapter 13 plan, then alterations from the previous plan shall be highlighted.

(3) Other Amendments. If an amendment is not being filed to correct or alter the preamble to the Chapter 13 plan, then the amendment must include only the provisions that differ from the previous plan.

(4) Service. The debtor must serve the amendment, together with a notice of the hearing date for confirmation, on the trustee and any creditors or parties in interest who may be adversely affected, and must file a proof of service.

(5) Amendments affecting non-consenting creditors. The debtor may not file a plan amendment that adversely affects the rights of non-consenting creditors less than 28 days before the confirmation hearing date.

(f) Post-Confirmation Amendments to Chapter 13 Plans.

(1) General Rule. All amendments to a confirmed plan must be filed by a party permitted by § 1329(a). The proponent must use the notice and opportunity to object procedures set forth in LBR 9013(c).

(2) Amendment Numbering. Post-confirmation amendments to a plan must be numbered chronologically and entitled "First Post-Confirmation Plan Amendment . . . , Second Post-Confirmation Plan Amendment . . . ", etc.

(3) Explanation. The amendment must include only the provisions that differ from the plan as confirmed and explain how each new or amended provision changes the plan.

(4) Service. The debtor must serve the trustee and any creditors or parties in interest who may be adversely affected by the amendment with a copy of the amendment and the LBR 9013(c) notice; and must file a proof of service.

(g) Refunds to Debtors. As long as the confirmed plan so provides, the Chapter 13 trustee may refund estate monies to the debtor, including income tax refunds, without amending the plan or otherwise securing a court order. The Chapter 13 trustee may also refund estate monies to the debtor on an emergency basis, even if the confirmed plan does not so allow and without prior court order, if the debtor stipulates in writing to repay the refund to the estate before completion of the plan.