| RULE 13. |
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CHAPTER 13 PRACTICE |
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13.1 |
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Secured and
Priority Claims (3001-1) |
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a.
All secured claims and
priority claims of creditors must:
1. be filed in the Clerk's Office within three (3) business days preceding the meeting of creditors;
and
2. must include a rebated balance as of the date of filing.
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b.
The trustee must pay post-petition interest - to accrue daily at a market rate of
interest - to the extent that the claim is secured. |
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c.
The
parties may by agreement modify the secured creditor's right to receive post-petition interest. |
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13.2 |
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Dissemination of
the Plan (3015-1) |
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a.
The attorney for the
debtor must mail copies of the plan to all scheduled creditors.
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b.
Copies of the plan must be mailed no later than fifteen (15) days after the
case is filed. |
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c.
The attorney for the debtor must certify to the Court that
the plan has been mailed according to this Rule within three (3)
days of the mailing. |
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d.
Debtor’s counsel must include with or on the plan a
statement that substantially conforms to the following:
"The above-named debtor(s) has/have
filed a Chapter 13 petition in the U.S. Bankruptcy Court for the
Western District of Kentucky. If
you have not received notice of the filing, you will receive
notice within a few days." |
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13.3 |
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Debtor's Motion to Strip Off a Junior Lien
(3012-1) |
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A Chapter 13 debtor may file a motion
which must be entitled "Motion to Strip Off a Junior
Lien" and a proposed Order in a format that substantially
complies with Local Form
M. The motion, at a minimum, must
specifically identify the name of the creditor, the subject real
property, the legal description of the property, state clearly
and unequivocally that the debtor intends to strip off the
creditor’s lien and treat the creditor’s claim as unsecured,
and state that the basis for the lien stripping is alleged lack
of equity in the encumbered property. The motion should be filed
with the proposed plan or no later than 10 days prior to the
scheduled confirmation hearing in order for the motion to be
heard in conjunction with the confirmation hearing. |
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| 13.4 |
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Debtor's Obligation
to Make Escrow Payments; Payments to Standing Trustee
(3070-1) |
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a.
Every debtor represented by counsel must make proposed plan payments required by 11 U.S.C. §1326 to debtor’s
attorney's
escrow account from the date of filing the plan. |
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b.
Proposed plan payments must be
paid to the standing Trustee at the Section 341 meeting. |
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c.
Failure
to make such payments to the
standing Trustee shall be grounds for appropriate sanctions
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including denial of confirmation.
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13.5 |
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Less than 100%
Plans |
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All debtors having
plans confirmed that provide for less than full payment to holders
of unsecured claims shall: |
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a. submit
to the standing Trustee
copies of federal and state income tax returns filed during the
pendency of the case. |
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b. deliver
federal and state income tax refunds to the standing
Trustee for distribution to creditors, in addition to
the percentage required by the plan, except that debtors do not pay over 100%; and |
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c. annually
submit a current income and expense statement -
substantially the same as the statement accompanying
the filing of a case - to the Court and to the standing
Trustee who will determine whether
all disposable income is being paid into the plan. |
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13.6 |
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Debtor's Income Tax
Return and Income and Expense Statement |
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a. A Debtor must
provide to the Trustee -
no later than May 15 of each year a case is pending -
1. copies of federal and
state income tax returns and
2. income and expense statement.
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b.
If an extension of time for filing
income tax
returns is filed in lieu of a tax return,
1. a copy of the
extension request shall be filed
with the standing Trustee - no later than May 15 of each year a case is
pending - and
2. a
copy of
the returns shall be filed with the standing Trustee
at such time as the same are filed with the
taxing
authorities. |
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13.7 |
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Sanctions |
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Failure to comply with this
Rule shall be considered cause for Court sanctions,
including dismissal of the case. |
13.8 |
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Requirements for
Discharge in Chapter 13 cases - (Added April 3, 2007) |
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a. Section 1328(a) Discharge -
1. Upon the Trustee filing the Notice
of Plan Completion, the Trustee shall contemporaneously serve on
the debtor
and the attorney for the debtor (if any) the Notice
to the Debtor of Plan Completion and of the Debtor’s Need to
file
Request for Discharge.
2. The debtor shall complete and
file with the Court within 30 days of the date of the Trustee’s
Notice the Certification
of Plan Completion and Request for Discharge, Local Rule
Form Q. See Local Form Q
3. Failure to file the
Certification could result in the case being closed without a
discharge. Any reopening to enter a
discharge will require a reopening fee to be paid.
4. If no response to the
Certificate and Notice is filed with the Court by creditors or
parties in interest, the Court will
issue a discharge. |
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b. Section 1328(b) Discharge -
1. Upon the filing of a motion by the debtor for a
hardship discharge, the debtor shall contemporaneously file the
Certification of Debtor Information Regarding
Request for Hardship Discharge, Local Rule Form R;
See
Local Form R
2. Failure to file the Certification with the
motion may result in denial of relief sought |
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