CLAIMS AND EQUITY SECURITY INTERESTS - NO ASSET CASES.

Every chapter 7 case will be treated as a “no asset case” unless and until the case trustee files a “Notice of Asset Case,” upon which the Court will set a deadline for the filing of proofs of claim and issue a “Notice to File Claims” as required by Bankruptcy Rule 2002(e). Proofs of claim filed in a no asset case will be accepted by the Clerk for filing, but no action will be taken. RULE 3002.1-1.

HELOC CREDITOR NOTICE OF MORTGAGE PAYMENT CHANGE.

(a) Annual Statements. A creditor whose claim is secured by a chapter 13 debtor’s principal residence which is based on a home equity line of credit (a “HELOC”), then the holder of that claim (the “HELOC Creditor”) shall be excused from complying with the general requirement of Bankruptcy Rule 3002.1(b)(1) if: (1) the monthly payment amount does not increase or decrease by more than $10 in any single month; (2) the HELOC Creditor sends an annual statement within the same one-month period each year; and (3) the annual statement includes: (A) a reconciliation statement showing the amounts of any monthly over-payments or under- payments over the course of the prior year; (B) if there was a net over-payment for the prior year, the amount and application of the over- payment, the current balance the HELOC Creditor is holding, the location of the funds, and how the HELOC Creditor proposes to apply the over-payment against the current year’s amounts due; and (C) if there was a net under-payment for the prior year, an invoice for the amount necessary to satisfy that under-payment. (b) Late Fees; Default. If the HELOC Creditor chooses to send an annual statement in lieu of notices of each payment change, then it may not assess any late fee, or declare the debtor to be in default, because of any shortfall in the monthly payment, if the debtor’s payment was at least as much as was set forth on the last annual statement or a subsequent separate notice of payment change.

Revised 12/1/24 Page 25 of 88 RULE 3002.1-2. OBJECTIONS TO NOTICE OF MORTGAGE PAYMENT CHANGE IN CONDUIT MORTGAGE PAYMENT CASES. (a) Objection Pending. If, pursuant to Bankruptcy Rule 3002.1(b), the debtor or trustee files a timely objection to a notice of payment change filed by the holder of a claim secured by a security interest in the debtor’s principal residence (the “Mortgage Creditor”) in a Conduit Mortgage Payment case (as that term is defined in Local Rule 3015-6(a)(1 , then, until the Court rules on the objection: (1) the debtor is not required to increase the plan payment; (2) neither the debtor nor the trustee is required to increase the monthly disbursement to the Mortgage Creditor; (3) the Mortgage Creditor may not declare a default or otherwise seek to enforce its rights against the debtor based on the debtor or trustee’s failure to make the increased mortgage payment; and (4) the trustee shall continue to make payments in the pre-notice amount and retain any additional sums if the debtor voluntarily increases the plan payment pending the Court’s ruling.

(b) Objection Overruled. If the Court overrules the objection and allows the payment change, then: (1) within 14 days of entry of that order, the debtor shall file a motion to modify the plan and confirmation order with a proposed modified plan curing any post-petition mortgage default, increasing the monthly mortgage payment going forward, and adjusting the terms of the plan and amount of plan payments accordingly; and (2) the Mortgage Creditor may not declare a default or otherwise seek to enforce its rights against the debtor while the debtor’s motion to modify plan is pending, so long as the debtor timely filed that motion. (c) Objection Sustained. If the Court sustains the objection and disallows the payment change, then if the debtor voluntarily increased the plan payment while the objection was pending pursuant to subparagraph (a)(4) above, the trustee will apply any such retained sums either (1) as sums due under the confirmed plan (thus reducing the term of the plan) or (2) to the funds to be distributed to the general unsecured creditors (thus increasing the dividend to that class of creditors), as the debtor elects.

RULE 3002.1-3.

MOTIONS DECLARING DEBTOR CURRENT ON MORTGAGE.

(a) Contents of Motion. Each motion declaring debtor current filed pursuant to Bankruptcy Rule 3002.1(f) and (h) shall: (1) inform the Mortgage Creditor of its obligation to file and serve a response under Bankruptcy Rule 3002.1(g) that includes the information specified in paragraph (b) below; and (2) include in the proposed order (A) a directive to enter on the Mortgage Creditor’s (or its servicer’s) books an entry reflecting the date and content of the Court order, including any corrective entry necessary to align its books with the Court order, and (B) an injunction against the Mortgage Creditor sending inaccurate notices. (b) Contents of Response. Every response filed by a Mortgage Creditor, or its servicer, pursuant to Bankruptcy Rule 3002.1(g) shall contain the following information: (1) whether it agrees the debtor has paid in full the amount required to cure any pre-petition default; Revised 12/1/24 Page 26 of 88 (2) whether the debtor is otherwise current on all post-petition payments, including any fees, charges, escrow, expenses, or costs associated with the mortgage loan due through the date of the response; (3) any unpaid principal balance owed as of that date; (4) any escrow account balance as of that date; (5) any suspense or other unapplied account balances as of that date; and (6) any fees, expenses, or charges that have been allowed but are unpaid as of that date.

(c) Duty to File Motion. (1) Conduit Mortgage Payment case. The trustee shall file any motion to declare debtor current in a Conduit Mortgage Payment case. (2) Non-Conduit Mortgage Payment case.

The debtor’s counsel (or the debtor, if pro se) may file any motion to declare debtor current in a case where the debtor has made the mortgage payments directly to the Mortgage Creditor or its servicer during the chapter 13 case.