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Proposed Plan, Motion To Value Class Four Claims, And Notice To Creditors Form. This is a West Virginia form and can be use in Bankruptcy Court Federal.
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Tags: Proposed Plan, Motion To Value Class Four Claims, And Notice To Creditors, West Virginia Federal, Bankruptcy Court
UNITED STATES BANKRUPTCY COURT
FOR THE__________ DISTRICT OF WEST VIRGINIA
IN RE:
)
)
)
)
)
____________________________(name)
____________________________(name)
CASE NO.: _______________
PROPOSED PLAN,
MOTION TO VALUE CLASS FOUR CLAIMS, AND
NOTICE TO CREDITORS
To Creditors: Read this proposed plan carefully and discuss it with your attorney. This proposed plan requests that you accept its terms
and contains evidentiary matters, which, if not controverted, may be accepted by the court as true. The proposed plan may be confirmed
without further notice if no objection is timely filed. If you object to any provision of this plan, or if you oppose any included motion
to value collateral, you MUST file a timely written objection. Objections by any party other than the Chapter 13 Trustee must
be in writing and filed with the court no later than ten days after the date first set for the § 341(a) meeting of creditors. If this
proposed plan was not filed at least ten days before the date first set for the § 341(a) meeting of creditors, objections must be filed within
twenty days after the filing of this proposed plan.
This plan does not allow claims; thus, the fact that your claim is classified herein does not mean that you will receive payment. You must
file a proof of claim to be paid even if you are listed in this Plan or on the bankruptcy schedules. If the Debtor proposes to pay a claim
directly, then the failure of a creditor to file a proof of claim does not excuse the Debtor from making the required direct payments;
provided, however, if any part of a claim is to be paid by the Trustee, the creditor must file a proof of claim.
[ ] Original Plan
[ ] Pre-Confirmation Amended Plan; Date Amended:________________________
All pre-confirmation Amended Plans must be filed on this form and all pertinent sections completed, including those that are
unchanged by the Amended Plan.
For an Amended Plan, the Plan provisions amended by this filing are:
Creditors affected by this amendment are: (List both creditor name and proof of claim #)
The Debtor earns income that is:
[ ] Above the Applicable Median Income
[ ] Below the Applicable Median Income
Estimated dividend to unsecured creditors
if case was filed under Chapter 7_____%
(See Exhibit A attached)
Debtor Claims to be Eligible for Discharge: [ ] Yes
[ ] No
Estimated dividend to
unsecured creditors under this Chapter 13
plan: _____%
Joint Debtor Claims to be Eligible for Discharge:
[ ] Yes
[ ] No
Any changes made to the language of this model plan by the Debtor must be placed in bold faced font.
I.
Plan Payments and Length
The Debtor will continue to make payments for the life of the plan, regardless of whether the estimated dividend to unsecured
creditors has been met. The Debtor shall pay $_________ over the life of the plan, payable in [weekly, bi-weekly, or monthly]
installments of $________ over a total period of _____ months to the Trustee. OR,
The Debtor anticipates changes in income and expenses over the course of the plan and propose payments as follows:
The Debtor shall make [weekly, bi-weekly, or monthly] installment payments to the Trustee in the amount of
$_________ over a total period of _____ months to the Trustee.
Then $_________ [weekly, bi-weekly, or monthly] for a total period of ____________ months
Then $_________ [weekly, bi-weekly, or monthly] for a total period of ____________ months.
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The Schedule I net income listed for the Debtor is
Less the Schedule J expenses claimed by the Debtor
Equals the Debtor’s claimed disposable income based on Schedules I & J
$_______
$_______
$_______
If the Debtor has above median income, the Debtor listed disposable income on Line 59 of Form B22C (Statement of Current
Monthly Income and Calculation of Commitment Period and Disposable Income) in the amount of $_________.
The Debtor shall make plan payments by:
[ ] A wage withholding order:
(Name of Employer)_____________________________________________________________________
(Address) _____________________________________________________________________________
_____________________________________________________________________________________
(Telephone) ___________________________________________________________________________
[ ] Direct payment by the Debtor. (Unless otherwise exempted from the wage withholding requirement, checking this
box requires the Debtor to make a motion to the Bankruptcy Court explaining why there is to be no wage withholding
order).
In addition to the monthly plan payments proposed by the Debtor, the following additional property is dedicated to pay claims
against the Debtor: ___________________________________________________________________________________
____________________________________________________________________________________________________
(Specify property or indicate if none). Additional property increases the gross base of the plan.
TAX REFUNDS - Regarding the receipt of future tax refunds, the Debtor proposes to:
[ ] Dedicate all amounts over $1,500 from all tax refunds to increase the gross base of the Chapter 13 plan;
[ ] Dedicate the entire amount of all tax refunds to increase the gross base on the proposed Chapter 13 Plan; OR
[ ] Other. Please explain:____________________________________________________________________________
_________________________________________________________________________________________________
The Debtor shall submit all tax refunds that are dedicated to the Plan to the Trustee within 30 days of receipt of the same.
EFFECTIVE DATE. Plan payments shall commence not later than 30 days after the filing of the petition or date of conversion
from another chapter. The amount of the monthly plan payment may be increased without notice at or before the confirmation
hearing. The proposed plan length runs from:
[ ] The date that the first plan payment is made pursuant to § 1326(a)(1); or,
[ ] The date of confirmation, with all pre-confirmation payments being dedicated to pay claims against the Debtor.
ADEQUATE PROTECTION PAYMENTS. Unless otherwise ordered, if a secured creditor is being paid through the Trustee,
then all § 1326(a)(1) adequate protection payments shall be made through the Trustee in the amount set forth in this proposed plan.
Payment shall be subject to the Trustee’s fee and shall be made in the ordinary course of the Trustee’s business. However, the
Trustee is not obligated to make any pre-confirmation adequate protection payments to a secured creditor until that creditor files
a proof of claim.
II.
Plan Analysis - Total Payments Provided For In the Plan (not including any amounts not paid through the Trustee)
Class One
$__________
Class Two
$__________
Class Three
$__________
Class Four
$__________
Class Five
$__________
Class Six
$__________
Class Seven
$__________
Class Eight
$__________
Other
$__________
Total (should equal the total Debtor proposes to pay in section I.)
$__________
III.
Classification of Claims and Valuation of Secured Property
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Each holder of an allowed secured claim, which is paid during the life of the plan and for which the collateral is not surrendered,
shall retain the lien securing the claim until the earlier of: (1) payment of the underlying debt as determined under non-bankruptcy
law; or (2) discharge. Should this case be dismissed or converted before the plan is completed, the lien securing an allowed
secured claim shall be retained by the holder to the extent recognized by non-bankruptcy law.
CLASS ONE: Allowed, Priority, Unsecured Claims Under § 507 of the Bankruptcy Code
(1) Trustee’s Fees. The Trustee will receive from all disbursements such amount as is approved by the Court for
payment of fees and expenses. The Trustee’s fees are estimated to be 10% of each monthly disbursement. The Debtor
has proposed a plan of reorganization that pays a gross base of $______ over ___ months; thus the total estimated
Trustee’s fee is $______. In the event that the Trustee’s fees are less than 10%, the additional funds collected by the
Trustee shall be disbursed to unsecured creditors up to 100% of the allowed claims.
(2) Attorney’s Fees. The Attorney for the Debtor will be paid a base fee of $_________. The Attorney received
$_______ from the Debtor pre-petition and the remainder of the base fee will be paid after confirmation of this plan and
concurrently with any secured debt payments and any domestic support obligation that is to be paid by the Trustee. Funds
are to be applied first to long term mortgage debts paid through the Trustee, second to equal monthly payments to other
secured creditors, third to domestic support creditors, and only then to attorney’s fees. Attorney’s fees are to be paid,
in-full, before any plan payment is applied to an arrearage claim or before payment is applied to any other priority or
unsecured debts.
(3) Domestic Support Obligations.
[ ] The Debtor has no domestic support obligations
[ ] The name and address of the holder of any domestic support obligation as defined in 11 U.S.C.
§ 101(14A) is as follows: (Do not disclose the names of minor children or confidential information -instead,
inform the Trustee privately)
Claim
#
Name of DSO Claimant and/or Agency with
full mailing address of each
Estimated Arrearage to be
Paid in the Plan (enter -0if none is to be paid
through the plan)
Payment Amount for On-Going Monthly
DSO obligations. Indicate if Post-Petition
payments are to be made by the Trustee
(“T”), or the Debtor (“D”)
(4) Other Priority Claims as defined by 11 U.S.C. § 507
Claim #
Creditor
Type of Priority
Estimated Amount Owed
$
Unless the holder of a Class One claim agrees to different treatment, the Debtor will pay all Class One claims in full, in deferred
payments, provided a proof of claim has been filed, if applicable. The amount and timing of each monthly payment is subject to the
discretion of the Trustee.
CLASS TWO: Debts Secured Only by the Principal Residence of the Debtor. The property address of the principal residence
of the Debtor is: _________________________________________________________________________________________________
[ ] There are no Class Two claims;
[ ] There are Class Two claims that are treated under one of the following three options:
[ ] Option 1: Direct Pay. The Debtor is not in arrears on these mortgage debt(s) and will directly pay the
mortgage holder its regular monthly payment.
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Claim
#
Creditor
Monthly Contract Payment
Amount
Total Number of Payments
Remaining (if less than Plan
length)
[ ] Option Two: Cure of Arrearage and Maintenance of Payments.
Treatment of On-Going Monthly Payments
Claim
#
Lien Holder
Regular
Monthly
Payment
Number of Payments
Remaining if Less
than Plan Length
Total Paid in
Plan Through
the Trustee
Treatment of Arrearage on Mortgage claims. The pre-petition arrearage must be paid through the Trustee and will be paid in the plan at
0% interest unless otherwise ordered by the court. The arrearage amount listed is an estimate and is subject to change based upon a
Creditor’s timely filed and allowed secured claim. The monthly payment amount on the arrearage debt is to be determined by the Trustee.
Claim
#
Lien Holder
Amount of Arrearage
[ ] Option Three: Open. The Debtor proposes the following treatment for Class Two claims:
____________________________________________________________________________________________________________
____________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Unless a Class Two debt is paid in full in the plan, Class Two claims (home mortgages) are to be paid as long term debts and are excepted
from discharge pursuant to § 1328(a)(1).
Notification of Payment Changes for Class Two Claims Being Paid Through the Trustee
In the event of any change in the amount of the monthly mortgage payments pursuant to the terms of the mortgage agreement, the creditor
shall file with the Clerk, and serve upon the Debtor and Debtor’s counsel, a Notice of Payment Change. Upon the filing of a Notice of
Payment Change, the Trustee will change the monthly payment amount. In the event a Notice of Payment Change is filed, the Trustee
shall be responsible to submit to the Court an amended wage withholding order and to notify the Debtor and Debtor’s counsel in writing
of the change in the plan payment. In the event a payment change affects the rights of any other creditor, a pre-confirmation amended plan
or motion to modify confirmed plan must be filed.
CLASS THREE: - Oversecured Claims and Secured Claims Not Subject to Valuation Under 11 U.S.C. § 506 (creditor claims
that are secured by a purchase money security interest in a motor vehicle acquired for the personal use of the Debtor within 910
days preceding the filing date of the petition or any other personal property collateral acquired within one year preceding the filing
date of the petition).
[ ] There are no Class Three claims;
[ ] There are Class Three claims. Class Three Claims are treated under one of the following four options:
Option One: Direct Payment. The Debtor is not in arrears on these Class Three debt(s) and will directly pay the Class
Three creditor its regular monthly payment.
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Claim
#
Creditor
Collateral
Monthly
Contract
Payment
Amount
Total Number of
Payments Remaining (if
less than Plan length)
Option 2: Cure of Arrearage and Maintenance of Payments. If this option is used, both the cure of the arrearage and
the ongoing contractual payments must be made through the Trustee, unless otherwise ordered by the Court.
Treatment of On-Going Monthly Payments
Claim
#
Lien Holder
Collateral
Total
Due at
Filing
Interest
Rate
Monthly
Contract
Payment
Amount
Number of
Payments
Remaining
Total Paid
in Plan
Through
Trustee
Treatment of Arrearage on Class Three claims. The pre-petition arrearage must be paid through the Trustee and will be paid in the plan
at 0% interest unless otherwise ordered by the court. The arrearage amount listed is an estimate and is subject to change based upon a
Creditor’s timely filed and allowed secured claim. The monthly payment amount on the arrearage debt is to be determined by the Trustee.
Claim
#
Lien Holder
Collateral
Amount of Arrearage
Option 3: Modification of Creditor’s Claim Except as Provided in 11 U.S.C. § 506. Claims that are modified in a
Chapter 13 plan must be paid through the Chapter 13 trustee. Both the arrearage amount and the remaining principal
balance are paid at the prime rate in effect on the petition date, plus 2 percentage points, unless a different rate is stated.
The total amount to be paid in the Plan may be determined by the following formula: Interest = Principal (rate of interest
x term). The monthly payment amount is to be determined by the Trustee.
Claim
#
Creditor
Collateral
Total Owed
(including
arrearage)
Interest
Rate
Number of
Proposed Plan
Payments
Total Paid in
Plan Through
the Trustee
Option 4: Open. The Debtor proposes the following treatment for Class Three claims:
_________________________________________________________________________________________________________
____________________________________________________________________________________________________________
______________________________________________________________________________________________________________
MOTION TO VALUE CLASS FOUR CLAIMS
[] There are no Class Four Claims
[] Class Four Claims are treated as follows:
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The Debtor moves to value the collateral indicated below. The Trustee shall pay allowed secured claims the value of the collateral as
indicated, in full, over the duration of the plan. The Trustee will pay interest on the secured portion of the claim at the prime rate in effect
on the petition date, plus 2 percentage points, unless a different rate is stated. Total interest required to be paid over the life of the plan
may be determined by the following formula: Interest = Principal (rate of interest x term). The actual amount and timing of the payment(s)
on the secured portion of the claim are subject to the discretion of the Trustee. The amount of the creditor’s claim in excess of the Debtor’s
valuation for the collateral shall be treated in Class Six as an unsecured claim if the creditor timely files a proof of claim. A claim with
collateral listed at NO VALUE in the Debtor’s Valuation column below will be treated as an unsecured claim and the lien is avoided
pursuant to 11 U.S.C. § 506.
Claim
#
Creditor
Collateral
Amount
Owed
Debtor’s
Valuation
Interest
Rate
Total Paid in Plan
NOTICE OF HEARING TO VALUE SECURED PROPERTY
Notice is given pursuant to § 506(a) that the Debtor moves to value the secured property listed in Class Four of this plan. The
Debtor is the owner of the property serving as collateral, is aware of its condition, and believes that its value is as set forth above.
If an objection is filed and remains unresolved before confirmation, a § 506 valuation hearing will be held on the date and time
set for the confirmation of the plan. If you object to the motion as contained in the plan, you must file your objection(s) within
10 days following the date first set for the § 341 meeting of creditors. In cases where the plan is not filed within 10 days before
the date first set for the § 341 meeting of creditors, objections must be filed within 20 days after the filing of the plan.
IT IS THE DEBTOR’S RESPONSIBILITY TO ENSURE THAT SERVICE OF THE MOTION CONTAINED IN THIS
PLAN IS PROPER UNDER FED. R. BANKR. P. 7004. In particular, if the affected creditor is a corporation, a copy of the
plan containing this motion must be mailed to the attention of an officer, a managing or general agent, or to any other agent
authorized by appointment or by law to receive service of process and, if the agent is one authorized by statute to receive service
and the statute so requires, by also mailing a copy to the defendant. This address may be different than that provided on the
mailing matrix for service of this Plan.
CAUTION
At the Debtor’s option, the Debtor may file a separate motion to value, in which case the affected creditors will be sent either:
(1) a notice allowing the affected creditor 20 days to file an objection to the Debtor’s valuation; or (2) a notice setting the motion
for hearing. If the Debtor files a motion to value that is separate from this Plan, the court will adjudicate the issue based on the
separately filed motion and not pursuant to the terms of this plan. In the event the court has granted the Debtor’s separate motion
to value, affected creditors may not object to confirmation of the plan on the grounds of valuation. In the event a separate motion
to value is filed listing collateral at a lower value than originally set forth in the plan, and the Trustee has made adequate protection
payments pursuant to the plan, the creditor may retain any funds paid by the Trustee before the entry of an order of valuation to
the extent that the amount of the payments are greater than the value as set forth in the motion.
CLASS FIVE: Secured Collateral to be Surrendered or Sold
[ ] There are no Class Five claims.
[ ] There are Class Five claims.
The Debtor proposes to surrender or sell the following collateral:
Claim
#
Creditor
Collateral
Amount
Owed
Debtor’s
Valuation of
the Collateral
Indicate if
Surrendered
or to be Sold
Time to
complete sale,
if applicable
For property the Debtor proposes to sell, a separate Motion and proposed Order must be filed which provide the details of the sale. Court
approval also must be obtained for the hire and use of a professional to sell property. After the payment of secured debts and the costs
of sale, all net proceeds shall be paid to the Trustee for distribution. Property to be sold by the Debtor that is not sold in the applicable time
period will be surrendered to the creditor unless the Trustee requests additional time, or unless the Debtor modifies the plan to retain the
collateral and cure existing defaults. A secured creditor entitled to a deficiency claim must file that claim within 90 days of the date that
the real or personal property is surrendered by the Debtor, or within 30 days of a sale that is conducted by the Debtor. After the payment
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of secured debts and the costs of sale, a report accounting for the sale shall be made and all net proceeds shall be paid to the Trustee for
distribution.
CLASS SIX: Timely Filed and Allowed Non-Priority Unsecured Claims.
Class Six claims will be paid pro rata. The Debtor estimates that Class Six claims will receive ____% of their claims.
Payment of any dividend will depend on the amount of secured and priority claims allowed and the total amount of all
allowed unsecured claims. No payment will be made until unsecured priority claims are paid in full, and no payment
will be made on Scheduled claims unless a proof of claim is filed.
The value as of the effective date of the plan of property to be distributed in the plan on account of each allowed
unsecured claim is not less than the amount that would be paid on such claim if the estate of the Debtor was liquidated
in Chapter 7 of the Bankruptcy Code on that date. The percentage distribution to general unsecured creditors in Chapter
7 is estimated to be ____%, as shown on Exhibit A attached hereto.
CLASS SEVEN: Executory Contracts / Unexpired Leases
The following executory contracts and/or leases are held by the Debtor. The treatment of each lease/contract is set forth below. The Debtor
shall surrender any property covered by rejected executory contracts or leases to the affected creditor no later than the date this plan is
confirmed.
Claim
#
Creditor
Indicate if Assumed or
Rejected and identify
the item leased
Monthly payment
(Indicate if payments
will be made in the
plan (Y/N)
Arrearage
amount
Total Paid in Plan
Through the Trustee
CLASS EIGHT: Post-Petition Claims Under Bankruptcy Code § 1305.
Unless a timely objection is filed, post-petition claims allowed under § 1305 shall be paid, in full, in equal monthly installments. Payments
shall commence no later than 30 days after the filing of the claim, and conclude on or before the date of the last payment in the Plan, unless
otherwise ordered by the Court.
Other Plan Provisions
A.
Co-Debtor Claims
The following claims for consumer debts on which another individual is liable with the Debtor are separately classified. Unless otherwise
indicated co-debtor claims are to be paid in full.
Claim
#
Creditor
B.
Co-Debtor
Interest
Rate
Monthly Payment /
Number of Months
Paid by the
Trustee (“T”) of
the Debtor (“D”)
Total Paid in
Plan Through
the Trustee
Student Loans
The following claims are non-dischargeable student loans and will be treated as follows:
Claim
#
Creditor
Amount
Owed
Interest
Rate
Choose an Option:
[ ] Debtor to pay directly outside the Plan;
[ ] Pay pro rata through the Plan as a Class Six creditor; OR
Total
Paid in
Plan
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[ ] Other; Please explain basis for treatment below:
C.
Additional Classes.
[ ] There are no additional classes of claims
[ ] The Debtor proposes to separately classify the following claims:
Claim
#
Creditor
D.
Interest
Rate
Monthly Payment /
Number of Months
Paid by the
Trustee (“T”) or
the Debtor (“D”)
Reason for
Separate
Classification
Total Paid in
Plan Through
the Trustee
Motions to Avoid Lien(s) Under 11 U.S.C. § 522(f).
The Debtor will file a separate motion to avoid the following judicial liens or nonpossessory, nonpurchase money security interests. Unless
a separate motion is filed, this plan does not operate to avoid the liens and claims will be treated according to their filed proofs of claims.
Otherwise an adversary proceeding must be filed to contest whether a lien is enforceable or not. The Debtor may at a later date seek to
avoid a judicial lien held by a creditor not listed below. The Debtor discloses the intention to avoid liens held by the following creditors:
Claim #
Creditor
Collateral
E.
All property of the estate under sections 541 and 1306 of the Bankruptcy Code will continue to be property of
the estate following confirmation.
F.
The Trustee will mail payments to the address provided on the proof of claim form unless the creditor provides
another address by an amended proof of claim or other document filed with the Clerk. If the claim is
subsequently assigned or transferred, the Trustee will continue to remit payment to the original creditor until
a formal notice of assignment or transfer is filed with the court.
G.
Other (explain):
______________________________________________________________________________________
______________________________________________________________________________________
___________________________________________________________________________________
H.
There are no other plan provisions.
I.
“Debtor” includes both Debtors in a jointly filed case.
Dated: ___________________
____________________________________
Attorney for the Debtor
I declare under penalty of perjury that the foregoing is true and correct.
______________________________
Debtor
____________________________________
Joint Debtor
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Exhibit A: Liquidation Analysis
ASSETS
Real Property
Property Value
(List each piece of real estate separately)
Less First Mortgage
Less Second Mortgage
Less Claimed Exemptions
Less a 10% Cost of Sale
Net Equity (do not enter an amount