CACB — Instructions To Debtors’ Counsel (11 U.S.C. §§ 506 & 522(f) issues)

Source: https://www.cacb.uscourts.gov/sites/cacb/files/documents/forms/Instructions%20341LienMod%26SchBCD.pdf

Central District of California United States Bankruptcy Court

Instructions To Debtors’ Counsel (11 U.S.C. §§ 506 & 522(f) issues)

A. MOTION PRACTICE (USUAL PROCEDURE)

Step 1, case commencement: File the plan with Attachment A. Serve the Plan per FRBP 2002, using the standard notice/cover sheet (F3015-1.02.NOTICE341CNFRM).

Step 2, after obtaining appraisal: File motion(s) with supporting evidence, and serve per FRBP 7004. § 506, Lam motion: Local Form F 4003-2.4.JR.LIEN.MOTION § 506, non-Lam motion: Local Form F 3012-1.MOTION.VALUATION § 522(f), real property: Local Form F 4003-2.1.AVOID.LIEN.RP.MOTION § 522(f), personal property: Local Form F 4003-2.1.AVOID.LIEN.PP.MOTION

Step 3, § 506/522(f) hearing(s) & order(s): After the hearing (or if there is no opposition/hearing) lodge your proposed order(s): § 506, Lam motion: Local Form F 4003-2.4.JR.LIEN.ORDER § 506, non-Lam motion: Local Form F 3012-1.ORDER.VALUATION § 522(f), real property: Local Form F 4003-2.1.AVOID.LIEN.RP.ORDER § 522(f), personal property: Local Form F 4003-2.1.AVOID.LIEN.PP.ORDER

Step 4, confirmation order: The chapter 13 trustee lodges a proposed confirmation order with Attachment A (the trustee copies the PDF Attachment A from the most recent plan filed by the debtor).

B. PLAN ACTS AS THE MOTION (optional procedure - only for cases filed on or after 12/1/17)

Step 1, case commencement: File a plan that serves as your 506/522(f) motion(s) – i.e., check the appropriate boxes on p.1 (to alert lienholders that you’re using the Plan as your 506/522(f) motion) and include Attachment B, C, or D as applicable. (a) serve the plan as usual: per FRBP 2002 without any evidence, using the standard notice/cover sheet (F3015-1.02.NOTICE341CNFRM) AND (b) serve affected lienholders per FRBP 7004 with the plan, the special notice/cover sheet (F3015-1.02.NOTICE341LIENCNRM), and the same evidence as you would use for a motion. Note: If you do not yet have an appraisal (or other evidence) then include a statement to that effect (e.g., attach a sheet stating, “Evidence to be provided with future amended plan”).

Step 2, after obtaining appraisal (or other evidence): File and serve amended plan (same as Step 1) with evidence.

Step 3, § 506/522(f) hearing: Follow your judge’s procedures about whether to have a separate hearing on this aspect of the plan (e.g., if there is an opposition then the judge might hold hearings at the same time as regular § 506/522(f) motions are heard, or the judge might address these issues at a preliminary confirmation hearing).

Step 4, amended plan (if necessary): (a) If the court does not change your proposed valuations then you do not need to file an amended plan – your existing plan can be confirmed (subject to any non- 506/522(f) objections), so skip to Step 5. (b) If the court finds valuation(s) different from what you have proposed then you will need to file and serve an amended plan incorporating the new valuation(s), with amended Attachment(s) B, C, or D as applicable (instead of supporting evidence, you can attach a sheet stating “Valuation per court ruling” or the equivalent).

Step 5, confirmation order: The chapter 13 trustee lodges a proposed confirmation order with Attachment B, C, and/or D as applicable (the trustee copies the PDF Attachments from the most recent plan filed by the debtor).

11/20/2017 Instructions: liens affected by a) Motion or b) Plan