Chapter 13 Plan

(a) Filing and Service of Chapter 13 Plans. The debtor shall file the initial Chapter 13 plan at the time of the filing of the petition whenever possible. If a Chapter 13 plan is not filed with the petition, it shall be filed within the time allowed by FRBP 3015(b). Any plan not filed within 24 hours of the filing of the petition shall be served by the debtor on all interested parties in the case.

The debtor shall file with the Court a certificate of service immediately thereafter showing that the Chapter 13 plan has been served. (b) Mandatory Chapter 13 Plan Form. (1) All Chapter 13 debtors, as well as the trustee and holders of secured and unsecured claims, shall use the standard Chapter 13 plan form contained in the Clerk’s Instructions when proposing a plan pursuant to 11 U.S.C. §§ 1321 or 1329 (a). (2) The language of the standard plan shall not be altered except to insert text in designated spaces, to expand the tables to include additional claims, or to change the title to indicate the Chapter 13 plan is a modified plan.

The plan proponent is not prohibited from proposing additional or different plan provisions including but not limited to additional or different plan provisions specifying that any of the standard provisions of the Chapter 13 plan will not be applicable in a particular case. Any such deviations from the plan form must be made a part of the special provision section of the plan and shall be limited to that section only. Any plan provisions that vary from the standard plan form and are not contained in the special provision section are hereby deemed void and shall have no binding effect as part of any confirmable plan. (3) Except as provided hereafter, every plan shall provide that property of the estate shall remain property of the estate after confirmation until the case is closed or unless otherwise ordered by the Court.

If the debtor proposes a plan providing that the property of the estate re-vest in the debtor upon confirmation of the plan, that proposal shall be clearly and conspicuously stated in the special provision section of the plan. (c) Long-Term Debt Paid Through Plan. All Chapter 13 plans shall provide that when a pre- petition arrearage exists for claims treated pursuant to 11 U.S.C. § 1322(b)(5) as of the date of the bankruptcy filing and such arrearage is four monthly payments or more under the terms of the applicable note or contract, the payments which come due after the filing of the bankruptcy shall be maintained during the plan and shall be paid by the Chapter 13 Trustee unless otherwise 15 Back to TOC ordered by the Court. The Chapter 13 Trustee is authorized to disburse to the holder of such claim the payment amounts under the applicable note or contract which come due after the filing of the bankruptcy but before the confirmation of the plan.

The Chapter 13 Trustee is authorized to collect the percentage fee in effect at the time of the disbursement on all payments made pursuant to this Rule. Such disbursements shall be made within a reasonable time after receipt of payment from the debtor unless otherwise ordered by the Court. Such disbursements shall be made to the creditor's address as listed in the debtor's schedules if no proof of claim has been filed by the creditor. (d) Length of Plan.

All Chapter 13 plans shall provide for payments over a period of not less than 36 months unless the plan provides that the value of the property to be distributed under the plan on account of any claim is not less than the amount of such claim. Unless the Court orders otherwise, if the dividend provided in the confirmed plan is less than 100% and is met before 36 monthly payments are made by the debtor to the Chapter 13 Trustee, the debtor, in order to be eligible for a discharge under 11 U.S.C. § 1328(a), shall continue to make payments until the earlier of 36 monthly payments have been made or a 100% dividend has been paid. (e) Pre-Confirmation Adequate Protection and Lease Payments. (1) General.

The Chapter 13 plan shall provide that 11 U.S.C. § 1326(a)(1) pre- confirmation adequate protection and lease payments are to be paid through the Chapter 13 Trustee. The plan shall identify the creditors entitled to the payments and the amounts proposed. The debtor shall immediately commence plan payments to the Chapter 13 Trustee and may not reduce payments to the Chapter 13 Trustee under 11 U.S.C. § 1326(a)(1)(B) and (C) without an order of the Court. (2) Payment by the Chapter 13 Trustee.

The Chapter 13 Trustee is authorized to pay 11 U.S.C. § 1326(a)(1) pre-confirmation payments set forth in the proposed plan and to collect the Chapter 13 Trustee’s usual fee thereon without an order of the Court. No payment shall be made to a creditor until a proof of claim is filed. Pre-confirmation payments shall be made to creditors within 30 days of the filing of the proof of claim unless sufficient funds to make such payments have not been received by the Chapter 13 Trustee within seven working days prior to the end of the 30-day period. The Chapter 13 Trustee is authorized to deduct from an allowed claim the 11 U.S.C. § 1326(a)(1) pre-confirmation payments made by the Chapter 13 Trustee.

The deduction is made as of the date of payment. (3) If a creditor obtains an order for payments under 11 U.S.C. § 1326(a)(3) and the case is dismissed prior to confirmation, the creditor shall receive from the Chapter 13 Trustee, upon dismissal of the case, any payments due and owing from funds collected by the Chapter 13 Trustee under 11 U.S.C. § 1326(a)(1)(A), less the Chapter 13 Trustee’s fees. 16 Back to TOC