NEW BANKRUPTCY RULE
AMENDMENTS TO CH. 13
PLAN FORM PROPOSED
By Diane Davis
July 1 — Consumer bankruptcy
attorneys should be aware that the
adoption of a national Chapter 13 plan
form is getting closer, with a new “optout proposal” being considered in a
new proposed bankruptcy rule and
amendments.
The Judicial Conference Advisory
Committee on Bankruptcy Rules July
1 published a proposed amendment to
Bankruptcy Rule 3015 and the adoption
of a new Rule 3015.1 that would require
the use of an official form for Chapter
13 plans unless a district requires
the use of a single local form for that
purpose and meets the requirements in
the new rule.
The proposed amendment to Rule
3015, and new Rule 3015.1 would
modify the Advisory Committee’s
proposal for a mandatory nation-wide
official Chapter 13 plan form. Chapter
13 bankruptcy allows individuals
receiving regular income to obtain debt
relief while retaining their property. To
do so, the debtor must propose a plan
that uses future income to repay all or a
portion of his debts over a three to five
year period.
The Advisory Committee has been
considering an official form for Chapter
13 plans since 2011.
Comments
on
the
amendments must be
electronically by Oct. 3.
proposed
submitted
Members of the public who wish to
present testimony may appear at the
40
CONSUMER BANKRUPTCY JOURNAL
public hearing on the proposals on
Sept. 27, in Pasadena, Calif., but must
notify the committee in writing at least
30 days before the scheduled hearing
date.
New Official Ch. 13 Form
Under the proposed amendments,
Rule 3015(c) would be amended to
require the use of an Official Form if
one is adopted for Chapter 13 plans
unless a Local Form has been adopted
consistent with new Rule 3015.1. The
nonstandard provisions in a Chapter
13 plan must be set out in the section
of the Official or Local Form specifically
designed for such provisions and must
be identified in the manner required by
the Official or Local Form.
Subdivision (d) of Rule 3015 would be
amended to ensure that the trustee
and creditors are served with the plan
before confirmation. Service may be
made either at the time the plan is filed
or with the notice under Rule 2002 of
the hearing to consider confirmation of
the plan.
Rule 3015(f) would be amended to
require service of an objection to
confirmation at least seven days before
the hearing to consider confirmation
of a plan, unless the court orders
otherwise.
Other amendments to Rule 3015
include amending subdivision (g) to set
out two effects of confirmation. Under
Rule 3015(g)(1), the amount of a
secured claim under Bankruptcy Code
Section 506(a) may be determined
Summer 2016
through a Chapter 12 or Chapter 13
plan in accordance with Rule 3012.
That determination controls over a
contrary proof of claim and over the
schedule submitted by the debtor.
The amount of a secured claim of a
governmental unit, however, may not
be determined through a Chapter 12 or
Chapter 13 plan under Rule 3012.
Rule 3015(g)(2), as amended, provides
for termination of the automatic stay
under Sections 362, 1201, and 1301
as requested in the plan.
Rule 3015(h) has been redesignated
and amended to reflect that often the
party proposing a plan modification is
responsible for serving the proposed
modification on other parties. The rule
retains the option to serve a summary
of the proposed modification.
Local Form Requirements
Proposed Rule 3015.1 is new and
establishes features that are required
for all Local Forms for plans in Chapter
13 cases. If a Local Form doesn’t
comply with this rule, it can’t be used
in lieu of the Official Chapter 13 Plan
Form.
Under Rule 3015.1, only one Local
Form may be adopted in a district.
Although the method of adoption
isn’t specified, a Local Form must be
adopted and preceded by a public
notice and comment period.
To “promote consistency among Local
Forms and clarity of content,” Rule
3015.1 provides several formatting and
National Association of Consumer Bankruptcy Attorneys