Contents of Chapter 12 or 13 Plans of Reorganization

A. In addition to the requirements of 11 U.S.C. §§ 1222 and 1322, a plan must include: 1. 2. 3. 4.

Payments. The dollar amount of payments to be made to the trustee, by month; Trustee Compensation. The portion of the plan payment designated as trustee compensation and reimbursement; Curing of Default. If the plan provides for the curing of any default or arrearage, a designation of the default as prepetition or postpetition; Property Value.

A value for every asset that secures a claim to be paid in full through the Trustee. Valuations contained in the Chapter 13 Plan are not binding on creditor provided the creditor timely files a claim containing an allegation as to the value of the collateral. 5. Payment of Claims.

The manner in which every secured claim and class of claims 24 is to be satisfied or paid, including monthly payment amounts, and whether the debtor or the trustee will make payments to the creditor. The plan must provide for payment of the present value of all priority and secured claims as set forth on all proofs of claim of record unless an objection to the proof of claim has been filed and sustained; Interest Rate. The rate of interest to be paid on each secured or priority claim; Lien Avoidance. If the debtor intends to file a complaint to avoid a lien, an unambiguous statement that the debtor proposes to avoid a creditor's lien and the basis alleged for avoidance; the plan may not avoid a lien through confirmation; Liquidation Value.

An analysis of the amount available to unsecured creditors if the case were a chapter 7 liquidation; Computing Present Value. A statement of the annual interest or discount rate used to compute the present value of the deferred payments to each class of claims; Present Value. A statement of the present value of the deferred payments to each class of claims; Basis For Differing Treatment. The basis for different payments or treatment of creditors within the same class, if applicable; Surrender of Collateral.

A statement that confirmation of the plan will constitute an order granting relief from the automatic stay to allow enforcement of security interest(s) in collateral surrendered pursuant to 11 U.S.C. §1325(a)(5)(C); Executory Contracts and Unexpired Leases. Identification of every executory contract and unexpired lease, and provisions concerning their assumption or rejection; Disclosure and Request for Approval of Attorney's Compensation. A disclosure of the compensation paid or promised to be paid to debtor's counsel, together with a request for a hearing on approval of compensation and reimbursement of expenses at the time of the confirmation hearing if not previously approved by court order; 6. 7.

8. 9. 10. 11.

12. 13. 14. 15.

Attorney's Certification. A certification by debtor's counsel that counsel has explained the debtor's obligations under the plan; and B. In chapter 13 cases, if a confirmation affidavit is filed by the debtor’s counsel no later than five (5) days prior to the confirmation hearing and there is no objection to confirmation, the court may confirm the proposed plan without the necessity of a hearing. The hearing docket for confirmations will be published no later than twenty-four (24) hours prior to the hearing. See Local Rule 3015-1 25 RULE 3016-1 Contents of Chapter 11 Disclosure Statements A. All chapter 11 disclosure statements must contain the following: 1.

2. 3. 4. 5.

6. A description of the classes of claims and the treatment for each. The description of each class should include either the name or a general description of the claimants included in the class, an estimate of the total claims in the class, and the percentage distribution anticipated. Included in this requirement is a description of estimated administrative expenses incurred to date, through confirmation, and the effective date; The description of secured claims should include an estimate of the secured claim amount, a brief description of the collateral securing the claim and its value, the method of payment including interest rate, amortization rate, the amount and timing of any installment payments, and the term to maturity.

A statement that the claim will be paid in accordance with the terms existing on the petition date is insufficient. A statement as to how adequate protection payments, if applicable, must be applied is also required; Priority claims should be classed based on relative priority with all claims of identical priority combined into one class. An estimate of the total claims in the class should be given along with the rate of interest, amortization, amount and timing of any installments, and maturity date; If claims are to be paid from funds as available, the timing, minimum distribution amount, and period of distribution should be specified. If payments are to be from net operations, net cash flow, or other formulaic methods, the method of calculation should be defined in sufficient detail; All defined terms in the plan should be included in the disclosure statement; The process, including the deadline, for filing of objections to claims and the procedure regarding distributions on claims with pending objections; 7.

The process for remission of unclaimed funds; 8. 9. A description of the party or parties responsible for distributions under the plan, their method of compensation, and how professionals retained by them are to be hired and compensated; Third party claims may not be discharged under the terms of a plan except by consent of the claimants affected. A plan that includes the discharge of a third party claim held by the plan proponent or reorganized debtor is assumed dischargeable by consent, if they are the proponent, it is by consent; 10.

Projected financial information for the life of the plan detailing anticipated income, 26 expenses, and plan payments. Attaching monthly operating reports to the disclosure statement is insufficient; 11. A liquidation analysis; 12. 13.

Disclosure of management and its compensation and benefits postpetition, the employment of and payments to insiders postpetition, and any anticipated dividends or other distributions to partners, members, or shareholders of the debtor post- petition must be included; The disclosure statement must contain a description of all pending litigation or unfiled causes of action, as well as a representation as to whether or not the litigation/causes of action will be pursued, and if not, the reasons why not. To the extent a plan proponent has not determined its intention, it must so state. If a plan proponent reserves the right to pursue a cause of action against a creditor, the intent to pursue must also be included in the provisions for treatment of the creditor’s claim. Notwithstanding the foregoing, a statement of intention must be provided for all claims held against the debtor, a plan proponent, or an officer, manager, shareholder, member, partner or affiliate (including any officer, manager, shareholder, member, partner or affiliate, or an affiliate of an affiliate) of the debtor or plan proponent.

14. Any conditions for effectiveness.

B. C.

Disclaimers of accuracy or responsibility for information contained in a disclosure statement will be considered a failure to provide adequate information concerning the issue disclaimed. Upon filing a disclosure statement, the proponent must contact chambers to notify the court of the filing and request a hearing date.