Local Rule LBR 3016: Pre-Confirmation Lease and Adequate Protection Payments

LBR 3016: Pre-Confirmation Lease and Adequate Protection Payments

(a) Plan Requirements. Unless the Court orders otherwise, when a debtor files a Chapter 13 plan providing that a lease or adequate protection payment be paid by the trustee to a creditor listed in the plan, the plan must:

(1) list the name, address, account number, and payment amount for each lessor or secured creditor receiving a payment;

(2) provide that the trustee may not disburse any adequate protection payments to a secured creditor until a proof of claim is filed; and

(3) provide that the trustee may only pay that portion of an allowed, secured claim that comes due after the order for relief.

(b) Adequate Protection Payment Disbursements. As long as the plan provides the information required by subparagraph (a), the trustee may begin making lease or adequate protection payments within 28 days after a proof of claim is properly filed, subject to the availability of funds and the trustee's monthly disbursement cycle. The trustee will reduce the principal amount of any lessor's or secured creditor's claim by the amount of the lease or adequate protection payments remitted. If a secured creditor files a pre-confirmation motion for relief from the automatic stay, the trustee will suspend lease or adequate protection payment disbursements until a final decision on the motion has been made. If the motion is denied, the trustee will resume making disbursements of lease and adequate protection payments, including the suspended payments, as available funds permit, unless the Court orders otherwise.

(c) Dismissal before Confirmation. If a Chapter 13 case is dismissed before confirmation of the plan, the trustee will make pre-confirmation lease and adequate protection payments that are owed through the date of dismissal to the extent that funds are available for that purpose and the requirements of subparagraph (a) have been met.