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Chapter 13 Payments

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Local Rule Number: 
Rule 3070-1
3000 Series

(A)       Commencement of Payments.

(1)        Deadline to Commence.  Payments to the chapter 13 trustee pursuant to the proposed plan, as may be amended, shall commence not later than 30 days after filing the petition.  If the case was converted to a chapter 13 case, payments shall commence not later than 30 days after entry of the conversion order.  Payments shall be made directly to the trustee in the manner prescribed by the trustee.

(2)        Scope of Payments.

(a)        Payments of personal property leases governed by 11 U.S.C. §1326(a)(1)(B), shall only be made directly by the debtor to the lessor if the debtor’s plan so provides or if no plan provision addresses payment of the debtor’s lease obligation.  If the plan provides for payment of the lease obligation by the trustee, the debtor shall make the pre-confirmation lease payments to the chapter 13 trustee in accordance with the filed chapter 13 plan.

(b)       Pre-confirmation adequate protection payments governed by 11 U.S.C. §1326(a)(1)(C), shall only be made directly by the debtor to the secured creditor if the debtor’s plan so provides or if no plan provision addresses payment of the secured claim.  If the plan provides for payment of the secured claim by the trustee, the debtor shall make the pre-confirmation payments to the chapter 13 trustee in accordance with the filed chapter 13 plan.

(3)        Pre-confirmation Payments to be Held by Trustee.  Unless otherwise ordered by the court, to facilitate the administration of chapter 13 cases, all pre-confirmation payments shall be held by the chapter 13 trustee pending confirmation, conversion or dismissal of the case and where applicable, Local Rules 1017-2(F) and 1019-1(E) shall apply.

(B)       [Abrogated]

☞ 2020 Amendment: Local Rule 3070-1(B) has been amended to delete subsection (B) of Local Rule 3070-1(B) and moves the substance of this subsection to new Local Rule 3002.1-1, as well as changes the title of the rule from “Post Confirmation Payment Changes or Charges” to “Notice of Payment Changes and Postpetition Fee Notices (“3002.1 Notices”).   The amendment also makes clear that the requirements of Bankruptcy Rule 3002.1 and Local Rule 3070-1(B) cease upon the creditor obtaining relief from the automatic stay. Prior to entry of an order granting stay relief, 3002.1 Notices must be filed and are required to be filed.  However; after entry of an order granting stay relief, the secured creditor must not file a 3002.1 Notices in any case in which the plan payments to that creditor are not made by the trustee or are not going to change under the loan documents. The amendment also incorporates the Mortgage Modification Mediation (“MMM”) program and makes clear that 3002.1 Notices are for notice purposes only during the mediation process, and the debtor is not required to file an objection due to the pending mediation. Finally, the amendment adds a requirement for the debtor’s Response to a 3002.1 Notice to be prepared on the local form.  However, the debtor and creditor may elect to avoid the expense of modifying the debtor’s chapter 13 plan and instead to reconcile the modified payments due to the creditor annually by filing a “Joint Motion to Abate 3002.1 Notices and Reconcile Annually."

(C)       Dismissal of Case for Failure to Timely Remit Payments.

(1)        Dismissal at the Meeting of Creditors.  If, at the meeting of creditors, the debtor is not current in plan payments under the plan as originally filed or amended, the chapter 13 trustee is authorized by the court to docket in the case a virtual paperless entry titled “Trustee’s Request for Entry of Order Dismissing Case” and the case may be dismissed without further notice or hearing.

(2)        Dismissal Subsequent to Confirmation.

(a)        Notice of Delinquency.  The trustee may, upon the debtor’s failure to timely make any payment, serve a notice of delinquency upon the debtor and the debtor’s attorney, along with a copy of this rule.

(b)       Deadline to Cure Delinquency.  The debtor shall have 45 days from the date of the notice of delinquency to make all payments due under the plan, including any payments that become due within the 45-day period.  If applicable, the debtor may, within 14 days of the notice of delinquency, file a motion to modify the confirmed plan.

(c)        Failure to Cure.  If the debtor is not current in plan payments on the 45th day after the date of the notice of delinquency, the trustee shall file and serve a report of noncompliance and the case shall be dismissed without further notice or hearing.

(D)       Wage Deduction Orders – Deadline for Submission of Local Form.  A debtor who is not self-employed must submit a proposed Local Form “Agreed Order to Employer to Deduct and Remit and for Related Matters” to the court prior to the meeting of creditors.  The proposed order must be signed by the debtor and debtor’s attorney.  If the proposed order is submitted to the court in electronic format, the order must contain the actual imaged signature of the debtor.  The attorney for the debtor, or clerk of court, if the debtor is pro se, shall serve the order on the employer.  If a wage deduction order has not been entered the court will conduct an evidentiary hearing to determine feasibility at the confirmation hearing.  The court will not confirm a case without a wage deduction order in place, absent extenuating circumstances.

(E)        Determination of Final Cure Payment.

(1)       Applicability of Bankruptcy Rule 3002.1.  The provisions of Bankruptcy Rule 3002.1 shall also apply to any chapter 13 case where the debtor’s plan provided for the curing of defaults on a claim secured by a security interest on real property other than the debtor’s principal residence.

(2)       Local Form Order Required.  A proposed order confirming a claim secured by a security interest in real property is current, submitted by a party to the court under Bankruptcy Rule 3002.1 or this local rule, shall substantially conform to this court’s Local Form “Order Determining Debtor has Cured Default and Paid All Required Postpetition Amounts”.