Payments by the chapter 13 trustee will only be made as follows:
(a) Payments on claims that are for
future mortgage payments shall be in the amount paid by the debtor
with respect to the future mortgage payments. The debtor must make
the payment in the amount required by the debtor’s note and security
agreement.
(b) Payments on vehicle claims shall be
made based on the valuation and interest rate contained in the
confirmed plan.
(c) Payments on secured claims shall be
reserved in the amount payable under the plan until a claim is
filed. If a secured proof of claim is filed and no objection to the
claim is filed within 21 days thereafter, the chapter 13 trustee
shall make plan payments on the secured claim in the amount
reflected on the proof of claim. If an objection is filed within 21
days of the date that the secured claim is filed, then no payment
shall be made on the claim until the objection is resolved. If a
timely objection to the claim is made in
accordance with the Bankruptcy Rules, and is sustained in whole or
in part, any overpayment shall be promptly refunded by the secured
creditor receiving the overpayment. It shall be the debtor’s
responsibility to collect any such refund that is not promptly made
by the secured creditor.
(d) Payments of § 507(b) claims shall
be made following confirmation, without the requirement of further
court order.
(e) Payment of claims for attorneys' fees shall be made only
on allowed claims for attorneys' fees. No reserve shall be
established for payment of lodestar attorneys' fees that are not yet
allowed except for applications for payment filed at least 21 days
before the confirmation hearing. If an application for payment is
filed at least 21 days before the confirmation hearing, (i)
the fees shall be reserved in the amount set forth in the
application until allowed or disallowed by the court; and (ii)
the court at the confirmation hearing may establish such additional
reserves as equity requires. Under fixed fee orders, attorneys'
fees are allowed on entry of the order approving the fixed fee
agreement.
(f) The priority of payments by the chapter 13 trustee will
be the priority set forth in the confirmed plan.
(g) Each chapter 13 trustees will place information on the
chapter 13 trustee’s website regarding all payments made under the
plans. This information shall be updated not less than quarterly.
(h) Distributions in dismissed cases should be made by the
chapter 13 trustee at the earliest practicable date following the
disposition of all motions for administrative expenses that are
timely filed or that are deemed allowed pursuant to BLR 4001-1.
Timely filed motions for administrative expenses will be those filed
within 21 days of the dismissal order.
(i) In addition to filing proofs of claim on the proof of
claim registry, proofs of claim for priority claims and secured
claims must be served on the debtor, the debtor’s counsel and the
chapter 13 trustee. A certificate of service reflecting service must
be filed with a copy of the proof of claim attached to the
certificate of service.
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