THE NECESSITY OF FILING
PROOFS OF CLAIM FOR
SECURED CREDITORS IN
CHAPTER 13
By Nancy B. Clark
Senior Attorney, Borowitz and Clark LLP
O
n December 1, 2011, Federal
Rule of Bankruptcy Procedure
3002.1 entitled Notice Relating
to Claims Secured by Security Interest
in the Debtor went into effect. This rule
requires claimants that are “secured
by a security interest in the debtor’s
principal residence”1 who are “provided
for under Section 1322(b)(5) of the
Code in debtor’s plan”2 provide notice
of mortgage payment changes3 and
notice of fees, expenses, and charges4
related to the underlying secured claim.
The purpose of providing notice is to
alert the debtor, debtor’s attorney and
the chapter 13 trustee of additional
charges related to mortgage loans and
homeowner’s association fees during
the chapter 13 plan term. By providing
such notices, the debtor, debtor’s
attorney and the trustee may object
to or provide for those fees, expenses
and charges during the chapter 13 plan
term. In re Carr, 468 B.R. 806, 808
(Bankr.E.D.Va. 2012). Thus ensuring
debtors a fresh start upon discharge.
Prior to enactment of Rule 3002.1,
it was not unusual for debtors to
find themselves in foreclosure after
receiving a discharge of their chapter
13 bankruptcy. In re Herrera, 422 B.R.
698, 712 (BAP 9th Cir. 2010). Secured
creditors were reticent to provide
debtors with notice of any escrow
1
2
3
4
38
FRBP 3002.1(a).
Id.
FRBP 30021.(b).
FRBP 3002.1(c).
CONSUMER BANKRUPTCY JOURNAL
changes, mortgage payment changes,
or notice of additional fees, expenses
and charges accrued and added to the
underlying loan during the chapter 13
plan term for fear of being found to be
in violation of the automatic stay. FRBP
3002.1 requires secured creditors with
a security interest in debtors residence
to provide debtors with appropriate
notices without fear of being sued for
stay violations. In re Bodrick, 498 B.R.
793, 800 (Bankr. N.D. Ohio 2013)5.
Determination of Fees, Expenses
and Charges During the Bankruptcy
FRBP 3002.1(c) states:
The holder of the claim shall file and
serve on the debtor, debtor’s counsel,
and the trustee a notice itemizing all
fees, expenses, or charges (1) that
were incurred in connection with the
claim after the &