Chapter 13 Trustee Policies & Procedures
Riverside Division of the Central District of California (rev. 3/2010)
- Before You File Your Petition
- Drafting Your Plan
- Before The Section 341(a) Meeting of Creditors
- At the Section 341(a) Meeting of Creditors
- Consent Calendar
- Attorney Fees
- Creditor Objections To Confirmation
- Payments To Creditors
- Debtor's Motions To Modify/Suspend Plan Payments
- Debtor's Motions To Sell or Refinance Property
- Debtor's Motions To Purchase Real or Personal Property
- Debtor Education/Personal Financial Management
- Discharge Procedures
1. Read Local Bankruptcy Rule 3015-1.
2. Read the Trustee's Chapter 13 Handbook.
3. File all state and federal tax returns that have come due.
4. Make sure you have appropriate insurance on vehicles, real property and any other property that serves as collateral for secured debts.
5. Attend credit counseling. See the U.S. Trustee website www.usdoj.gov/UST for a listing of approved providers.
6. MOTIONS TO VALUE REAL PROPERTY ("lien strip"). If you intend to file a motion to value real property, the moving papers should be filed immediately after the petition is filed, and the hearing on the motion should be noticed for the same date as the confirmation hearing. Delay in filing the motion may result in denial of the motion and dismissal of the case. Be sure to include competent, admissible evidence of: (1) the value of the property and (2) the amount owed to the 1st trust deed. A formal appraisal may not be necessary: the debtor can testify by declaration as to the value of the real property, based on the debtor's own knowledge. Service of the motion is paramount: follow the service requirements of the Local Bankruptcy Rules and in particular FRBP 7004(b)(3) & 7004(h) carefully and fully. See guidelines and Judge Bauer's suggestions for lien strip motions.
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Drafting and serving your plan
1. Use the court's approved plan form, and the notice of section 341(a) meeting.
2. Serve the plan on all interested parties at least twenty-eight (28) days prior to the section 341(a) meeting of creditors. If the plan is not timely served, your case may be dismissed, attorney fees may be reduced, or both.
3. The Trustee suggests that you serve your plan on the Internal Revenue Service, the Franchise Tax Board, and, if applicable, the Employment Development Department and State Board of Equalization, even if you feel you don't owe them any money.
4. Plans that pay a high percentage of unsecured debt are strongly encouraged. If you propose a plan paying a low percentage, be prepared to submit substantial evidence of: (1) all expense items on Schedule J, and (2) valuations for all property on Schedules A and B. Do not be surprised if the court schedules an evidentiary hearing.
5. To ensure that your plan remains feasible, the Trustee recommends that all priority and secured debts (debts in classes 1-4 of the plan) be paid over 60 months.
6. The Trustee routinely objects to "step-payments" whereby a secured priority creditor begins receiving disbursements in any month other than the 1st month.
Attorney fees are paid at the rate of one-half of the monthly plan payment amount, unless ordered by the court.. Make sure this rate is clearly stated in your plan.
7. Illegal provisions will be stricken, and the Trustee may seek sanctions against the responsible party.
8. If you intend to surrender any collateral, be sure to identify the property and the lender on page 5 of the plan.
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Before the section 341(a) meeting of creditors
1. Review the 341(a) Checklist. Make sure you have provided all required documents to the Trustee prior to the 341(a) meeting.
2. Be sure the Trustee receives a copy of the proof of service of the plan at least ten (10) days prior to the section 341(a) meeting of creditors.
3. Submit proof of all sources of income to the Trustee not later than eight (8) days prior to the section 341(a) meeting of creditors. If the proof is not timely received by the Trustee, your case may be dismissed, attorney fees may be reduced, or both (proof of income forms). The Trustee must receive a copy of the most recent year's federal income tax return not later than 7 days prior to the creditor meeting.
4. File your credit counseling certificate with the court and provide a copy to the Trustee.
5. Provide a Declaration Re Filing Of Tax Returns And Payment of Domestic Support Obligations to the Trustee no later than 8 days prior to the section 341(a) meeting of creditors.
6. If you have a domestic support obligation you must provide the Trustee with the name, current address and telephone number of the claim holder along with the applicable case number and account number not later than 15 days after the petition was filed.
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At the section 341(a) meeting of creditors
1. You are required to pay all plan and real estate mortgage payments (including payments for the purchase of a mobile home) that have come due since the date the petition in your case was filed. See LBR 3015-1.
2. Post Petition Mortgage Payments. In Riverside, the debtor's attorney is responsible for forwarding mortgage payments directly to the lender. At the 341(a) meeting of creditors, debtor's attorney will be asked to certify that the debtor is current with post-petition mortgage payments. It is debtor's attorney's responsibility to independently verify with the lender that the debtor is, in fact, current with these post-petition mortgage payments, and forward to the lender all such payments, whether or not the debtor is delinquent (see Local Bankruptcy Rule 3015-1. You may also mail the payments directly, but be sure to file the Declaration Setting Forth Post Petition Pre-Confirmation Trust-Deed Payments, and provide a copy to the Trustee.
3. Plan payments must be in the form of cashier's check, certified check or money order only, and must be made payable to "Chapter 13 Trustee." Write your name and case number on each instrument.
4. The first plan payment is due thirty (30) days after the date the petition was filed, and another plan payment is due every thirty days thereafter. If your case was converted from another chapter, your first plan payment is due thirty days from the date the order converting your case was entered on the court's docket. If your plan payment due date is on either the 29th, 30th or 31st of the month, you payment due date will be the 1st of the following month.
5. If your section 341(a) meeting of creditors is continued to a later date, additional plan and mortgage payments will come due. You must be fully current with all plan and mortgage payments, or the Trustee will recommend that your case be dismissed. Bring those payments with you to the continued 341(a) meeting. DO NOT MAIL THEM TO THE TRUSTEE.
6. You must present photographic proof of your identification. A valid California driver's license, state ID card, passport, or current military identification are all acceptable. Copies are not acceptable.
7. You must bring proof of your Social Security number. Your Social Security card, an original paystub or W-2 or 1099 form are all acceptable forms of proof. Copies of original documents are not acceptable.
8. You must present proof of automobile insurance for all vehicles that you own, lease, or have any interest in. The "declarations" page from your policy is the only evidence that the Trustee will accept.
9. Translation services are available by telephone. Third party translators are not permitted.
10. If this is a joint filing, both spouses must appear. Debtor's attorney must also be present.
11. It is strongly suggested that you bring an extra copy of all bankruptcy documents filed in your case, as well as copies of your proof of income, proof of service, and proof of automobile insurance.
12. If you have a 401K loan or other retirement loans, bring proof of the date the loan will be paid off to the 341(a) meeting.
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Consent calendar
The judges in the Riverside Division make use of a "consent calendar." The Trustee can recommend confirmation of the plan and waive the appearance of the debtor and debtor's attorney at the confirmation hearing if, at the section 341(a) meeting, the Trustee determines that:
1. The debtor is current with plan and mortgage payments;
2. All creditor objections have been resolved;
3. All claims have been accommodated;
4. All required documents have been submitted timely;
5. The plan complies with the provisions of 11 U.S.C. §1322, §1325, and other applicable laws;
6. The plan is feasible; and
7. The plan is ready for confirmation.
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Attorney fees
1. Attorneys may charge up to $4000 for representation in a "non-business" Chapter 13 case, and $4500 in a case where the debtor is operating a business, without filing a fee application (the "No-Look" fee). You must file a signed copy of the "Attorney Rights and Responsibilities Agreement Between Chapter 13 Debtors and Their Attorneys" Be sure to bring a copy of the filed "Rights and Responsibilities Agreement Between Chapter 13 Debtors and Their Attorneys" to the 341(A) meeting for the Trustee.
2. If you are seeking initial fees in excess of the foregoing limits, you must file an "application for additional fees." The application for additional fees must be served on the debtor & Chapter 13 Trustee for comment prior to filing with the court. If the additional fees requested exceed $1,000.00, all creditors must be served. Such fee requests are reviewed carefully, and the Trustee will recommend approval only if the case appears to be extraordinarily complex.
3. You must file a statement pursuant to FRBP 2016(b) in order to be awarded any fees.
4. Attorney fees paid through the debtor's plan are paid at the rate of one-half of the monthly plan payment amount. Make sure this is clearly stated in your plan.
5. The debtor's attorney may file an "application for supplemental fees" for tasks performed after the plan has been confirmed. The application for supplemental fees must be served on the debtor, and Chapter 13 Trustee for comment prior to filing with the court. If the supplemental fees requested exceed $1,000.00, all creditors must be served. Use the court approved form (available from the clerk of the court).
6. An "application for supplemental fees" should include a declaration that includes a detailed breakdown of the fees charged, the hourly rate, the tasks performed, and the name of the person performing the task. Ordinarily a hearing is not required, but may be set in an appropriate case.
7. Only the attorney of record will be awarded fees in a case. If you are not the attorney of record and you intend to submit an application for supplemental fees, you must file a "substitution of attorney" form in the case.
8. The Trustee will recommend disapproval of supplemental fee requests if the award of fees would render the plan infeasible. It may be necessary to modify the plan to accommodate supplemental fees.
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Creditor objections to confirmation
1. Written objections to confirmation must be filed not later than 7 days prior to confirmation. Untimely objections may be overruled. Oral objections may be made at the 341(a) meeting.
2. Creditors are strongly advised to attend the section 341(a) meeting of creditors to try to resolve their objections through negotiations with the debtor and debtor's attorney. Failure to appear at the section 341(a) meeting may result in the court overruling the objection.
3. Proofs of claim should be filed early, and must be served on the debtor's attorney (or the debtor, if there is no attorney) and the Trustee. Proof of service of the proof of claim must be filed with the court.
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Payments to creditors
1. The Trustee pays creditors based on the filed proof of claim. If the amount of the claim is different from the amount set forth in the plan, the Trustee will pay pursuant to the claim. If a claim is inaccurate, the creditor must file (1) a withdrawal of the claim, or (2) an amended claim. It is the debtor's responsibility to object to or otherwise resolve incorrect claims.
2. The Trustee will pay secured creditors based on the provisions of the debtor's plan until the secured creditor files a proof of claim.
3. Interest on secured debt is paid at the rate provided in the debtor's plan unless otherwise ordered by the court.
4. Secured and priority debts are paid pro-rata from the debtor's plan payments, unless the plan provides for other treatment of these claims.
5. All secured and priority debt is to be paid in full prior to any disbursements to unsecured creditors, unless otherwise ordered by the court.
6. Unsecured claims are paid pro-rata, after all secured and priority debt is paid in full.
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Debtor's motions to modify/suspend plan payments
1. Use the court's approved motion form, available from the clerk of the court. Do not submit an amended plan.
2. Serve the motion on the debtor and the Trustee, and then file it with the court.
3. If the motion seeks only a suspension or an extension of 90 days or less, no creditors need be served. However, if you are seeking to reduce the percentage paid to unsecured creditors, reduce the amount of the plan payment, surrender property, or make any change that adversely affects any creditor, all creditors must be served. If you are in doubt, serve all interested parties. Combined extensions and/or suspension of more than 90 days must be served on the creditors.
4. Include a declaration explaining the reason for the modification. Attach evidence (receipts for extraordinary expenses, pay stubs for changes in income, etc.). If you are increasing or decreasing the plan payment amount, attach amended Schedules I & J and current evidence of income.
5. Review your motion to ensure that the plan remains feasible. If the modification you propose will not pay all claims, the Trustee cannot recommend approval.
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Debtor's motions to sell or refinance real property
1. Use the court's approved form, available from the clerk of the court. Do not attach an amended plan.
2. Serve the motion on the debtor & the Trustee, and then file it with the court.
3. Include a complete explanation of the reason for the request. Attach escrow instructions, legal description of the property, and an estimated closing statement.
4. If the proceeds will not pay the plan in full, amended Schedules I & J must be attached with proof of income so that the Trustee can determine whether the debtor will be able to continue to pay the plan payments.
5. All creditors must be served with the motion if: (1) the proceeds of the sale will not pay the plan in full at 100% to unsecured creditors, or (2) the real property is not debtor's residence.
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Debtor's motions to purchase real or personal property
1. Serve the motion on the debtor & the Trustee, and then file it with the court.
2. Include a complete explanation of the reason for the request, and a statement explaining why the transaction is in the best interests of the debtor and/or creditos. Attach escrow instructions, legal description of the property, and an estimated closing statement.
3. Amended Schedules I & J must be attached with proof of income so that the Trustee can determine whether the debtor will be able to continue to pay the plan payments after the purchase.
4. All creditors must be served with the motion.
5. If the debtor is not current with plan payments, the Trustee will recommend that the motion be denied.
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Debtor Education/Personal Financial Management
1. For cases filed on or after October 17, 2005, debtors must undergo an approved course in Personal Financial Management before the completion of their case or they will not receive a discharge.
2. When you have completed the course, be sure to file the Debtor's Certification of Completion of Instructional Course Concerning Personal Financial Management.
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Discharge Procedures
1. If you filed your petition on or after October 17, 2005, and you are eligible to receive a discharge, after your case is completed you must file the Debtor's Certificate of Compliance under 11 USC 1328(a) and Application for Entry of
Discharge.