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Request for Comments Regarding Conduit Mortgages

Friday, January 27, 2023

Judges Burris, Duncan and Gasparini invite the bar, public, trustees and other interested parties to comment on the use of conduit plans in the District of South Carolina.  A "conduit plan" is defined as a Chapter 13 plan that provides for the debtor to make mortgage payments to the Chapter 13 Trustee for payment to the mortgage creditor through the Chapter 13 plan. Such plans are utilized in this district under SC LBR 3015-1(b) and Operating Order 22-04. Currently, the three Judges’ requirements are not wholly consistent. With uniformity and efficiency as the goal, comments and suggestions are appreciated on the applicability of conduit plans and requirements for debtors to make mortgage payments to the Chapter 13 trustee, as well as Operating Order 22-04 which outlines the mandatory nature of conduit plans under certain situations and exceptions thereto for Judges Duncan and Gasparini.  Please send any submissions to on or before February 15, 2023.