You are here

Chambers' Bulletins
02/2019

On Behalf of the Court

Wed, 2/06/2019 - 2:32 pm

The Judges, with input from the chapter 13 trustees, are considering minor changes to the chapter 13 form plan.  A copy of the form plan containing the changes is available here.  Before adopting these changes, the Judges seek comments from the bar and public.  Please send any comments concerning the proposed local form to scbml_lr_comment@scb.uscourts.gov on or before February 22, 2019.  The Court will consider any comments prior to final adoption of a revised form plan.

The proposed changes to the form plan are as follows:

1.  The second paragraph of the Notice to Creditors in Part 1 of the plan has been revised to remove the reference to an objection deadline seven days prior to a confirmation hearing, and now provides, "you or your attorney must file a timely objection to confirmation (consult Notice of Bankruptcy Case or applicable Notice/Motion served with this plan). This conforms with the different procedures employed by the judges. Those procedures are not changing at this time.

2.  Section 3.2 of the plan has been revised to remove the language requiring secured creditors to satisfy liens within a "reasonable time" and to add language stating, "Any secured creditor paid the allowed secured claim provided for by this plan shall release its liens at the earliest of the time required by applicable state law, order of this Court, or thirty (30) days from the entry of the discharge."

3.  Section 3.3 of the plan has been revised to remove reference to secured creditors' retention of liens under section 1325(a)(5)(B)(i) and to remove the language requiring secured creditors to satisfy liens within a "reasonable time" and to add language stating, "Any secured creditor paid the allowed secured claim provided for by this plan shall satisfy its liens at the earliest of the time required by applicable state law, order of this Court, or upon completion of the payment of its allowed secured claim in this case." The retention of liens language is not in the national form plan and was added to the current district form plan without accounting for its absence in the national plan.

4.  Section 4.4 of the plan has been re-ordered, with the check box for Domestic Support Claims coming first, the check box for "Other priority debt" second, and a checkbox containing the following language last: "The debtor is unaware of any priority claims at this time or of any other priority claims if one or more boxes above are checked.  If funds are available, the trustee is authorized to pay on any allowed priority claim without further amendment of the plan."  The heading to section 4.4 has also changed from "Check one" to "Check all that apply". 

An effective date for the use of the revised district form plan will be announced once comments are considered and a final plan is approved by the judges.

 


Subscribe to Chambers' Bulletins