Local Rule 6004-3: Sale of Property; Loan Modification; and the Incurrence of Debt in Amounts Totaling More than $15,000 by Chapter 13 Debtor
Bankr. W.D. Va. — General rule
LOCAL RULE 6004-3 Sale of Property; Refinancing; Loan Modification; and the Incurrence of Debt in Amounts Totaling More Than $15,000 by Chapter 13 Debtor A. A debtor seeking approval for the sale or refinance of real property or approval of a loan modification agreement shall provide the chapter 13 trustee and all creditors and parties in interest at least twenty-one (21) days notice of the motion seeking such approval unless the notice period has been shortened by the Court for cause shown. The application at a minimum shall attach the proposed sale contract, proposed refinancing agreement, or proposed loan modification agreement.
B. In addition to setting forth the information required by FRBP 2002(c)(1), the notice of sale or refinancing shall state (i) the total proposed sale price or maximum amount to be secured by the refinancing, as the case may be, and, in the case of a refinancing, the amount of the secured debt to be paid thereby; (ii) the amount of the sale or loan proceeds to be applied to the debtor's obligations under the confirmed plan; (iii) whether such payment will result in full payment of all allowed claims, and (iv) if all allowed claims will not be paid in full, the amount of the sale or loan proceeds that will be paid to the debtor.
C. If no objection (and, if the motion has not already been set for hearing, a request for hearing) is filed within the objection period, the Court, in its discretion, may enter an order endorsed by the chapter 13 trustee approving the sale or refinance without holding a hearing.
D. The debtor(s) shall not voluntarily incur additional indebtedness exceeding the cumulative total of $15,000 principal and interest during the term of the Plan, either unsecured or secured, except upon approval of the Court after notice to the Trustee, any creditor who has filed a request for notice, and other creditors to the extent required by the Local Rules of this Court.