Local Rule 3012-1: Pre-confirmation Adequate Protection Payments in Chapter 13 Cases
Bankr. W.D.N.C. — General rule
Local Rule 3012-1 Pre-confirmation Adequate Protection Payments in Chapter 13 Cases Pre-confirmation Adequate Protection Payments. All adequate protection payments required by 11 U.S.C. § 1326(a)(1) shall be paid as follows:
(a) The debtor shall pay directly to the lessor all payments scheduled in a lease of personal property for that portion of the obligation that becomes due after the order for relief. Absent a timely objection to confirmation of the proposed plan, the debtor shall be presumed to have made such payments as required by § 1326(a)(1). Because the Chapter 13 plan shall provide that payments to lessors will be made directly by the debtor, there shall be no reduction in the Chapter 13 plan payment remitted to the Chapter 13 trustee for these direct payments.
(b) Other adequate protection payments required by § 1326(a)(1) shall be made by the Chapter 13 trustee unless the court orders otherwise.
(c) For purposes of this provision, the Chapter 13 trustee shall make such adequate protection payments to the address duly noted on the sworn proof of claim. The use of such address shall be deemed proper notice to the creditor for the purposes of adequate protection payments.
(d) All adequate protection payments paid through the Chapter 13 trustee shall be subject to an administrative fee in favor of the trustee equal to the trustee's statutory percentage commission then in effect, and the trustee shall collect such fee at the time of the distribution of the adequate protection payment to the claimant.
(e) No adequate protection payment shall be disbursed until a properly-executed proof of claim is filed with the Clerk of Court, the claim has been deemed allowed pursuant to 11 U.S.C. § 502(a), and the Chapter 13 plan has been confirmed.
(f) The Chapter 13 trustee shall not be required to make adequate protection payments on account of any claim for which the secured value of said claim as provided in the plan is less than $2,000.
(g) Unless otherwise ordered by the court pursuant to § 1326(a)(3), the amount of the adequate protection payments required to be made by the Chapter 13 trustee shall be based on a monthly calculation of one percent of the lesser of (i) the plan value of the collateral securing the affected claim or (ii) the total amount of the asserted claim.