LOCAL BANKRUPTCY RULES

Rule 3015-1

CHAPTER 13 PLANS: PAYMENTS EXCEEDING THREE YEARS TREATMENT OF DEBTOR'S ATTORNEY'S FEES AS ADMINISTRATIVE EXPENSE; SERVICE

(a) Payments Exceeding Three Years. If a chapter 13 plan proposes payments to creditors over a period exceeding three years, then not later than 10 days prior to the date fixed for the hearing on confirmation of the plan, the debtor shall file an application on notice to the trustee, the United States Trustee, and all creditors setting forth the reasons for the longer period of time. If the debtor files both a plan and an application to extend the three year period contemporaneously with the filing of the chapter 13 petition, the debtor shall serve the application upon the trustee and the United States Trustee, but shall be relieved of the obligation of serving it upon all creditors. In such instance, the Clerk shall effectuate service by including the following language, or words of similar import, in the Notice of Commencement of Case that it serves upon all creditors:

An application has been made to extend payments under the debtor'schapter 13 plan over a period that is longer than three years. Such application may be granted unless an objection is filed not later than 15 days before the date set for the hearing on confirmation of the plan. A copy of the application is available in the Clerk's Office at the Court. If an objection is filed, a hearing shall be held on the date and at the time set for the confirmation hearing.

(b) Notice and Hearing for Attorney's Fees to be Treated as Administrative Expense.   If the compensation, or any portion thereof, of the attorney for a chapter 13 debtor is to be treated as an administrative expense under the plan, the attorney shall provide adequate notice of that fact to the trustee, the United States Trustee, and all creditors.   The notice shall be deemed adequate if the plan, or a summary of the plan, is transmitted timely to all parties in interest and states with particularity the timing and amount of any payments to be made to the attorney.

(c) Service of Plan. If the notice of commencement of a chapter 13 case is served without a copy of the plan or a summary of the plan, the debtor shall serve the plan or a summary of the plan on the chapter 13 trustee and all creditors.

 

Comment

The first sentence of subdivision (a) of this rule is derived from Former Local Bankruptcy Rule 61; the balance of the subdivision was added in 1997. Subdivision (a) contemplates that in a chapter 13 case, the Clerk will pro vide notice of a debtor's application to extend the three year plan payment period pursuant to § 1322(d) of the Bankruptcy Code, provided that the debtor has filed both a plan and an application to extend the three year pay ment period contemporaneously with the filing of the chapter 13 petition. If the debtor does not file both a plan and such application together with the petition, then the debtor, rather than the Clerk, shall be responsible for serving notice of the application. This rule is intended to (i) encourage chapter 13 debtors to file their plans simultaneously with their petitions and (ii) avoid waste and promote judicial economy.

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