Chapter 13 Plan Template by rrq10090

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									                             Chapter 13 Trustee
                        Eastern District Of Kentucky

                Chapter 13 Confirmation Procedure 
                                effective August 1, 2000


       Chapter 13 Plan: A standardized plan has been adopted for this district for all
chapter 13 cases filed on or after August 1, 2000.
       The standardized plan is the centerpiece of the revised chapter 13 confirmation
and delinquency procedures. It will:
    facilitate the review of the plan for feasibility
    offer consistency in the language of common plan provisions while
     retaining the flexibility needed to address debtors’ special circumstances
    eliminate common reasons for defective plan notices and pre-confirmation
     plan amendments
    provide secured creditors with early information about how their claims
     are to be treated, which in turn means an early bar date for filing
     objections to confirmation can be set
    speed up confirmation so that some plans can be confirmed immediately
     following the 341 meeting of creditors, and most plans should be
     confirmable within 30 days after the 341
    enable more accurate tracking of plan payment requirements as compared
     to payments actually made
        The plan is presently available as a Microsoft Word template from the Chapter 13
Trustee or the Bankruptcy Court, and it will soon be available in a WordPerfect format as
well. Instructions for using the standardized plan explain the reasons for including
certain provisions, and point out variances between current practice and the standardized
plan.
        With the use of a standardized plan, the time-frame needed for confirmation can
be abbreviated. The first confirmation hearing will be about 30 days after the 341
meeting, and the second confirmation hearing, which will be conducted by the court, will
take place approximately 30 days after the first confirmation hearing. Previously, the 341
meeting and confirmation hearings were scheduled 60 days apart.
        Defective Plan Notice: The Trustee will notify debtor’s counsel if there are
problems preventing plan confirmation by serving on debtor’s counsel a Defective Plan
Notice (“orange sheet”). The Defective Plan Notice may be amended and supplemented
prior to confirmation as necessary.
        Creditors’ Objections to Confirmation: Any creditor objecting to the treatment of
its claim in the chapter 13 plan must file and serve on the Trustee an objection on or
before the date and time first set for the Meeting of Creditors in Divisions other than
Lexington. In Lexington Division cases, creditors’ objections must be filed and served
on the Trustee within ten (10) days following the Meeting of Creditors. Creditors and
creditors’ counsel should be aware that in the absence of an objection, the value of their
collateral is established by the debtor’s plan. The Trustee in this district does not make
an independent determination of the value of property subject to liens.
       If an objection to confirmation is filed, the Court will schedule an evidentiary
hearing to be conducted approximately 60 days following the Meeting of Creditors. This
evidentiary hearing and second confirmation hearing will be conducted by the Court at
the same time.
        341 Meeting of Creditors: If no objections to confirmation have been timely
filed, and if the Trustee has not served on debtor’s counsel a Defective Plan Notice and
does not intend to serve a Defective Plan Notice following the 341 meeting, the Trustee
will tender to the Court an order confirming the chapter 13 plan.
        First Confirmation Hearing: The notice of the confirmation hearing is combined
with the notice of the meeting of creditors that is sent to all creditors. The first
confirmation hearing is conducted by the Trustee’s office about 30 days following the
meeting of creditors. The debtor is not required to attend the confirmation hearing;
however, the debtor’s presence may be beneficial to the parties depending on the nature
of the objections to the plan.
        If the Trustee has served a Defective Plan Notice on counsel for the debtor, or if a
creditor has filed an objection to confirmation and the objection is unresolved, or if a
motion for relief from stay has been filed, debtor’s counsel is required to attend the first
confirmation hearing. At that hearing any problems that can be resolved by the parties
should be resolved, and the appropriate amendments, agreed orders and other needed
documentation should be filed within 15 days thereafter to allow for confirmation.
       The confirmation hearing will be continued for approximately 30 days and will be
scheduled for hearing on the Court’s docket. The Trustee is instructed not to continue the
confirmation hearing to the Trustee’s docket for any reason, and not to continue the
confirmation hearing for a longer period than the approximately 30-40 days until the
Court’s next motion day.
        If there are no unresolved objections to confirmation from the Trustee or any
creditor, counsel for the debtor is not required to attend the hearing. The Trustee’s office
will give notice of cases which can be confirmed without a hearing (the “short-list”) to
the Court and to the appropriate counsel for the debtors no later than approximately 5
days prior to the date of the first confirmation hearing. The Trustee will tender to the
Court an order confirming the plan.
        The Trustee will not file a Trustee’s Report and Recommendation prior to the first
confirmation hearing. The TR&R is not needed to advise debtors’ counsel of whether the
plan is confirmable; the Defective Plan Notice will serve that purpose. And the TR&R is
no longer needed to advise secured creditors of how their claims are to be treated under
the plan; the standardized plan serves that purpose.




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         Second Confirmation Hearing and Valuation Hearing: Problems addressed in the
Defective Plan Notice must be cured within 15 days after the first confirmation hearing in
order to obtain a favorable recommendation from the Trustee as to confirmation. The
Trustee will file a Trustee’s Report and Recommendation approximately 7 to 10 days
prior to the second confirmation hearing. If the Trustee recommends confirmation of the
plan and objections to confirmation have been resolved by agreed order or otherwise, the
Trustee’s office will tender to the Court an order confirming the plan. The Trustee’s
office will give notice of cases which can be confirmed without a hearing (the “short-
list”) to the Court and to the appropriate counsel for the debtors approximately 5 days
prior to the date of the confirmation hearing so that the cases can be removed from the
Court’s docket.
        The confirmation hearing in cases which are not “short-listed” will be conducted
by the Court. The Court does not require attendance of the debtors at confirmation
hearings which it conducts. In addition, any valuation hearing or other hearing on a
creditor’s objection to confirmation will be conducted by the Court at the same time as
the second confirmation hearing.
       At the second confirmation hearing, the Court will not take any papers for filing
such as last minute agreed orders, last minute amended plans, etc. The Court will
consider only what has been properly and timely filed in time for all parties to react to it.
        Motion to Continue Confirmation Hearing: If a debtor has special problems such
as tax claims that require more time to address, debtor’s counsel should file a motion to
continue the second confirmation hearing and set forth in the motion the reasons for the
requested continuance and a proposed time frame needed to resolve the issues. The
motion to continue must be noticed for hearing no later than the date of the second
confirmation hearing. The Court may, upon request of the Trustee or of any secured
creditor, direct counsel for the debtor to tender agreed orders of adequate protection so
that payments can be made to secured creditors during the extended period needed for
confirmation.
        Payment Delinquencies at Time of Confirmation: No case will be confirmed
unless the debtors are substantially current in payments, both to the Trustee and to
secured creditors. If the debtors have not made any payments within 40 days after the
plan is filed, the Trustee will file a motion to dismiss the case which will be heard by the
Court in lieu of the first confirmation hearing. Cases in which the debtors are not
substantially current in payments at the second confirmation hearing will be dismissed at
that hearing. The failure of debtors to be substantially current in payments is not a valid
reason for requesting that the second confirmation hearing be continued.
         Notice of Allowance of Claims: After the bar date for filing proofs of claims by
governmental units, the Trustee will serve on debtor, debtor’s counsel, and all creditors a
Notice of Allowance of Claims, which will set forth how the Trustee’s office has set up
all filed claims for payment. By the time this Notice is served, disbursements on claims
filed as secured will have commenced. It is advisable that debtor’s counsel review all
claims filed as secured so that disbursements will not be made on claims which were filed
as secured but which the debtor believes are unsecured. See Standardized Plan
Instructions, Section III.F, for more information. Parties will have 10 days in which to
object to the Notice of Allowance of Claims. In the absence of objections, the claims will
be deemed allowed.

								
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