October 26, 2017

Presentation by:The Honorable Meredith A. Jury,

The Honorable Victoria S. Kaufman, and Trustee Elizabeth F. Rojas

TheChapter13PlanPart1:PreliminaryInformation

• Sets out boxes for the Debtor to check if: • There is a valuation of property or avoidance of lien in Class 3• There is an avoidance of a judicial lien or nonpossessory, nonpurchase-

money security interest in Section IV • There will be less than full payment for DSO • There will be other Non-standard provisions listed in Section IV

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Part2:PlanTermsSectionI(B):NonpriorityUnsecured

Claims� Provides options for the following (more than 1 box

may be checked): � “pot” plan� “percentage” plan� “residual” plan

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SectionI(B):NonpriorityUnsecuredClaims

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SectionI(C):RegardingPayments� Includes a section whereby the debtor will be able to

select a method of payment for the plan payments to the trustee

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SectionI(D)andI(E):IncomeTaxRefundsandNoticeofPost-petitionFees&Costs� Adds a section stating that income tax returns must be

provided to the trustee by the debtor within 14 days of filing the return. All income tax refunds in excess of $500 must be turned over to the trustee unless the plan is a 100% plan

� Adds a section with info re: Notice of Post petition Fees & Costs filed by a secured creditor; trustee authorized to commence paying charges 90 days after notice is filed unless Debtor objects by filing a motion to determine payment

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SectionI(D)andI(E):IncomeTaxRefundsandNoticeofPost-petitionFeesandCosts

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SectionII(A):OrderofPayments� All administrative expenses will be paid until paid in full—

eliminates the line to list a percentage of the plan payment to be paid towards administrative expenses

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SectionII(B)-Class3A� Specifies that a bifurcation of a secured or unsecured

claim is proposed in the plan � Requires a court order fixing the dollar amount of the

secured claim and/or avoiding the lien OR � Debtor must complete Section IV(C) so that the plan

itself serves as a motion � Adds section regarding requirement that debtor shall

pay all required ongoing property taxes & homeowner’s insurance for the real property in Class 3A

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SectionII(B)-Class3A

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SectionII(B)-Class3B� Separates from Class 3A the claims that will be paid in

full under the plan (claims that cannot be crammed down)

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SectionII(B)-Class5� Allows for more space to clearly list the creditors that are being

separately classified in Class 5 (non-priority unsecured claims). Also allows for cure of default in separately classified claims.

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SectionII(B)-Class6� Surrender of Collateral

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SectionII(B)-Class7� Adds another class for executory contracts and

unexpired leases (must indicate whether it is rejected or assumed and how many months within filing will payments be cured)

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SectionIV:Non-standardProvisions� Adds this section to list intentions to avoid liens and/or file motions to

value separately from the plan. Plan provision will only be effective if the applicable boxes are checked in Part 1, Section 1.1, 1.2, 1.3, or 1.4.

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SectionIV:Non-standardProvisions� Section IV(C): modifying secured claims without a separate motion

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Noticeof341(a)HearingandConfirmationHearing

Debtor must give:

� 21 days notice of response deadline for objection to plan

� 35 days notice of Confirmation Hearing plus 3 days for mail

� Added: “Written objections must be filed 14 days before the Confirmation Hearing”

� Deleted: “7 days before 341(a) for objections to plan” Trustee Rojas 17

Noticeof341(a)HearingandConfirmationHearing

First version:� Any motions to avoid liens will be filed separately on

local forms

Second version:� The plan proposes to modify secured claims without a

separate motion� Also adds 2 exhibits:

� One for a list of lienholders� One for valuation evidence with additional service

list

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Noticeof341(a)HearingandConfirmationHearing

Adds: � Debtor and debtor attorney must attend 341(a); interested parties

not required to attend

� Recommends to review the notice with an attorney

� The word ‘forfeiture’ regarding how the court may treat failure to file a written objection or appear at Confirmation Hearing

� Dismissal order may include:� Prohibition on being a debtor in any bankruptcy case versus just

“filing”� “Other remedies pursuant to applicable law” in addition to 180

day bar

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Noticeof341(a)HearingandConfirmationHearing

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ConfirmationOrderAdds:

� Line for docket number for the plan being confirmed.

� Options for fixed % plan, pot plan, and a residual plan

� Section A under Other Provisions for lien avoidance info and attachments

� Section for Surrender of Collateral and Stay Termination, lists creditors and collateral.

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ConfirmationOrderAdds:

� Statement re: determination of amount of secured claim in plan or by separate motion is binding on the holder of the claim

� If RFS ordered, all payments under the plan to the collateral will cease

� Revesting property section— property of estate will not revest until discharge is granted, case is dismissed or closed without discharge.

Deletes:� Executory contracts and unexpired leases (Section B)

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ConfirmationOrderPage1-2

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ConfirmationOrderPage3

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LBR3015-1SignificantChanges� LBR 3015-1(b)(7): Pleadings to value collateral and/or to avoid liens must be filed within

28 days of case commencement

� LBR 3015-1(c)(5): Lists the specific reports and documents that are required to be submitted to the trustee if a debtor is self employed and has employees

� LBR 3015-1(d)(2)(B): Confirmation orders will be held 7 days for objections. If the objection is timely filed, the objecting party must set a hearing on the objection not less than 7 days and no more than 28 days’ notice on a Chapter 13 miscellaneous motion calendar

� LBR 3015-1(e)(2) and LBR 3015-1(m)(4): For personal property and real property surrendered in a confirmed plan, a sentence is added stating that the stay is terminated as to the surrendered collateral upon entry of the order confirming plan

� LBR 3015-1(g)(1): Objections to confirmation must be filed & served at least 14 days prior to Confirmation Hearing (versus 7 days prior to 341(a))

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