COLLATERAL RECOVERY AND DEFICIENCY CLAIMS IN CHAPTER 13

(A) Upon confirmation of a Chapter 13 Plan that provides for surrender of collateral: (1) The creditor shall have sixty (60) days from confirmation of the Chapter 13 Plan to amend a timely filed proof of claim regarding any unsecured deficiency balance that may occur upon the sale of the subject collateral if the collateral consists of personal property that was not liquidated within the claims bar date period. (2) The creditor shall have ninety (90) days from confirmation of a Chapter 13 Plan to amend a timely filed proof of claim regarding any unsecured deficiency balance that may occur upon the sale of the subject collateral if the collateral consists of real property that was not liquidated within the claims bar date period. (3) The time periods provided above may be extended by Court Order upon the creditor filing an appropriate Motion stating the circumstances necessitating a need for a longer period of time and an estimated deficiency. (4) If the creditor does not file an amended proof of claim asserting a deficiency balance within the given time period and does not file a timely Motion to Extend the Time, then the claim will be automatically disallowed and the Chapter 13 Trustee shall make no disbursement on such claim.

(5) If the Chapter 13 Plan provides for the surrender of collateral, that plan shall constitute the debtor(s)’ consent to the immediate termination of the automatic stay. 40 (B) If a Chapter 13 Plan does not provide for the surrender of property: (1) If the collateral consists of personal property that was not liquidated prior to the claims bar date, the secured creditor shall have sixty (60) days from the date of an Order terminating the automatic stay to amend a timely filed proof of claim regarding any unsecured deficiency balance that may occur upon the sale of the subject collateral. (2) If the collateral consists of real property that was not liquidated prior to the claims bar date, the secured creditor shall have ninety (90) days from the date of an Order terminating the automatic stay to amend a timely filed proof of claim regarding any unsecured deficiency balance that may occur upon the sale of the subject collateral. (3) The time periods provided above may be extended by Court Order upon the creditor filing an appropriate Motion stating the circumstances necessitating a need for a longer period of time and an estimated deficiency.

(4) If no amended unsecured proof of claim is filed within the given time period and no Motion to Extend the Time is filed, any claim filed outside the time limits set forth in this rule will be automatically disallowed and the Chapter 13 Trustee shall make no disbursement on such claim unless a Motion and Order allowing the filing of the claim has been entered. Advisory Committee Notes 2023 Amendment The amended rule includes only stylistic changes for purposes of internal consistency and/or to correct grammatical errors. 2020 Amendment The amended rule includes both stylistic and substantive changes. The format of subdivisions is changed to maintain a consistent style across all rules.

Various subdivisions are amended for four key purposes. First, subdivision (A) is amended to allow for the possibility that surrender does not necessarily return property to the creditor, which is a legal question to be decided by the Court. Second, references to the “secured” creditor have been removed to avoid confusion in the circumstance where surrender of 41 collateral renders a creditor unsecured; removal of the qualifier is appropriate because the term creditor sufficiently describes the originally secured party. Third, the amendments clarify the process for a secured creditor’s deficiency claim for surrendered collateral, clarifying that such claims should be filed as amendments to the original, timely filed secured claim.

Fourth, the amendments remove any reference to filing by negative notice as exclusively within the scope of Local Rule 2002-2. RULE 3002.1-1 NOTICE RELATING TO CLAIMS SECURED BY SECURITY INTEREST IN THE DEBTOR’S PRINCIPAL RESIDENCE (A) In addition to the relief provided in Bankruptcy Rule 3002.1(i)(1) and (2), the holder of the claim may not seek to collect any fees, expenses and/or charges included in the omitted information required by Bankruptcy Rule 3002.1(b), (c) or (g). (B) All notices required pursuant to Bankruptcy Rule 3002.1 shall be provided to debtor, debtor’s counsel and trustee in accordance with Bankruptcy Rule 2002 and shall include a certificate of service. If filing the required notices as a supplement to the holder’s proof of claim does not result in notice to the debtor, debtor’s counsel and trustee via CM/ECF electronic service, the holder of the claim shall serve the unnoticed party by alternative means and so indicate on the certificate of service filed with the notice.

If the debtor is self-represented, the creditor must serve the debtor via United States Mail. Advisory Committee Notes 2023 No changes were made to this Local Rule in the 2023 revision cycle. 2020 Amendment The amended rule includes only stylistic changes. The format of subdivisions is changed to maintain a consistent style across all rules.

Subdivision (A) is amended to correct a typographical error. Subdivision (B) is amended to apply a consistent style for reference to the CM/ECF system and to clarify service on self-represented parties. 42 RULE 3007-1 CLAIMS OBJECTIONS (A) Objections to timely filed claims shall be subject to Bankruptcy Rule 3007(a) and, if not incorporated into an adversary proceeding, Bankruptcy Rule 9014(c). (B) Objections to claims shall be filed individually for each claim objected to and may name only one creditor.

(C) If no response to an objection to a claim is timely filed, the Court may sustain the objection without a hearing if relief is otherwise proper. (D) All proposed orders on objections to claims shall recite in the ordering paragraph that the objection is either sustained or overruled, that the claim is either allowed or disallowed, and if allowed, the amount and class of each such allowed claim. (E) In all cases filed under Chapter 13, unless extended by the Court, objections to timely filed claims shall be filed no later than sixty (60) days after the applicable claims bar date. Advisory Committee Notes 2023 No changes were made to this Local Rule in the 2023 revision cycle.

2020 Amendment The amended rule includes both stylistic and substantive changes. The format of subdivisions is changed to maintain a consistent style across all rules. Subdivisions (A) and new subdivision (C) are amended to remove the reference to Local Rule 9013-1 concerning memoranda of law, and former subdivision “C.” is eliminated, because that local rule applies generally without the cross-reference. Other subdivisions are renumbered accordingly.

Subdivision (A) is further amended to invoke the service rules of Bankruptcy Rule 3007(a), rather than those of 9014, and to clarify that the procedural elements of Bankruptcy Rule 9014(c) apply unless the claim objection is incorporated into an adversary proceeding in which case entire Rule 70xx series would apply. An example would be an objection to the nature and extent of lien in a claim filed as a secured claim. Subdivision (B) 43 and new subdivision (C) are amended to remove any reference to filing by negative notice as exclusively within the scope of Local Rule 2002-2. The notes previously in the rule are deleted as redundant to the text of the either this rule or the applicable Bankruptcy Rule 3007.

Subdivision (E) is amended to change the time to object to timely filed claims from the date of the confirmation hearing to a date based on the claims bar date to avoid stale objections. Subdivision (F) is deleted to allow for the process of objections to claims to be defined in conjunction with the Chapter 11 Plan.