Notes from the Pre-Confirmation Department

Valerie Walker, Pre-Confirmation Supervisor
Pre-Confirmation Staff:
Julie McMclure

Takelia Day

Stephanie Jackson

John Haber

Stephanie Meyer

Updates

  • Local Bankruptcy Rules were revised Dec. 1, 2011. Please make note of them and incorporate them into your pre-confirmation review:
  • Appraisals are required in all cases. However, an auditor's appraisal can be used when real estate is being surrendered or out of state. [LBR 3015-3(e)(3)].
  • Mortgage creditors must file with the clerk Official Form 10S1 if there is any change in the regular monthly payment amount. FRBP 3002.1.
  • Personal property secured by valid consensual or judicial liens shall be valued at the lower of the proof of claim or the value specified in the Plan.
  • All vehicles, whether lease or loan, are to be paid through the Plan regardless of whether they are long-term debts.
  • Trustee will only accept original documents for proof of social security numbers at the 341 meeting. Original documents other than SS card are: medical insurance card; pay stub; W-2 form; IRS form 1099; Social Security administration form.

Other Practice Notes

  • The Trustee's administration fee is 4.5%, effective 10/1/2012.
  • Pre-confirmation amendments are effective as of the filing date of the petition. An amended plan increasing plan payments may result in a payment deficiency.
  • Attorney fees are paid pursuant to 5(G) of the Plan up to the amount allowed per local rule. Any additional fees paid pursuant to an application for additional fees are paid. If the original fee is paid as class1, level 18, with a per-monthly payment, then post-confirmation fees will be paid as a class 1, level 24, with the same per monthly payment. If the original fee was paid as a class 2, level 25, with no per-monthly payment, then post-confirm fees will be paid as a class 2, level 26, with no per-monthly payment.
  • For all objections resolved prior to the confirmation hearing, please inform Scott Stout at or call at (937) 222-7600 Ext. 137.
  • Effective October 2011, the Interpreter Service required for use by the UST is Certified Languages International. Contact Valerie Walker by e-mail at or phone at (937) 222-7600 Ext. 113, at least ten days prior to the 341 so that we are aware that we will need an interpreter.
  • If you have hearing impaired debtor, contact Valerie Walker mail at or phone at (937) 222-7600 Ext. 113, at least ten days prior to the 341 so we can contact the U.S. Trustee to arrange for an interpreter.
  • If you do not already have web access to the 13 Network, go to to get the web agreement and follow the directions to get access to case information.
  • To receive mass mailings such as updates, information on attorney luncheons at the Trustee’s office, etc., contact Ginger McNulty or phone (937) 222-7600, Ext. 114.
  • After changes from original plan, all pre-confirmation plan amendments must be made by filing a complete Amended Mandatory Form Plan with the changes highlighted. Special Provisions in any plan are restricted to those items applicable to the particular circumstances of the debtor(s).
  • Fees and Expenses in Cases Dismissed Prior to Confirmation: To apply for attorney fees in dismissed unconfirmed cases, see LBR 2016-1(d)(2).
  • A pre-petition personal injury (PI) claim is property of the estate. The claim should be disclosed on Schedule B, even if the value of the claim is still undetermined. If the debtor wants to retain separate PI counsel to handle the claim, the debtor, not the Trustee, files an application to employ special counsel with the court. To settle the case, the debtor files a motion to approve compromise under Bankr. Rule 9019. At the time of the proposed settlement, when the non-exempt value of the claim is determined, the Plan may have to be modified to meet the "best interest of creditors" test of §1325(b)(4). For PI claims that arise post-confirmation, the claims should be disclosed to the court and the Trustee, and the special counsel and settlement procedures are the same as above.
  • In addition to PI claims, the Mandatory Form Plan requires Debtor(s) to fully and timely disclose any financial recovery which Debtor(s) becomes entitled to for any reason, including without limitation, employment claims, workers' comp claims, unemployment claims, inheritance, life insurance benefits, lottery proceeds or property settlements and social security.
  • Make sure that you have adhered to the service requirements as follows:
  • If an Amended Plan adversely affects any creditor, it must be accompanied by a 21 day notice and show creditor(s) noticed.
  • If the debtor filed schedules after the petition date that include creditors not on the original list of creditors or if creditors are added by a separate amendment, the debtor must serve a copy of the 341 notice, a copy of the most recent Plan and a Proof of Claim form on any creditor added by the amendment. (LBR 1009-1(a)(1)(2).