UNITED STATES BANKRUPTCY COURT 

DISTRICT OF NEW JERSEY

IMPORTANT NOTICE TO THE BAR AND PUBLIC

THIRTY-DAY COMMENT PERIOD CONCERNING PROPOSED MODIFICATION OF D.N.J. LBR 2016-5. REQUESTS

AND APPLICATIONS FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES IN A CHAPTER 13 CASE

Please be advised that the Board of Judges of the United States Bankruptcy Court for the

District of New Jersey has approved for publication for a thirty day public comment period, the

attached proposed modification of D.N.J. LBR 2016-5. Requests and Applications for

Compensation and Reimbursement of Expenses in a Chapter 13 Case.  

The changes to the Rule have been proposed by the Lawyers Advisory Committee, and

preliminarily approved by the Board of Judges. By approving a publication draft, the Board of

Judges solicits comments from bankruptcy professionals and members of the public.

Comments may be submitted to the Court email address: local_rules@njb.uscourts.gov 

Dated: June 23, 2017 Jeanne A. Naughton, Clerk

D.N.J. LBR 2016-5. Requests and Applications for Compensation and Reimbursement of Expenses in a Chapter 13 Case

(a) Compensation Methods. The debtor’s attorney in a chapter 13 case must, at a minimum, provide the services set forth in D.N.J. LBR 2016-5(d) and (e) and for doing so may be compensated as follows:

(1) Subject to D.N.J. LBR 2016-5(h), the debtor’s attorney in a chapter 13 case may accept a presumptively reasonable fee as set forth in D.N.J. LBR 2016-5(c);

(2) Alternatively, the debtor’s attorney in a chapter 13 case may opt out of the compensation procedures set forth in D.N.J. LBR 2016-5(c) and instead make application for fees and costs in accordance with D.N.J. LBR 2016-1.

(b) Selection of Compensation Method. The chapter 13 debtor’s attorney must select the method of compensation for services to be rendered in the case by filing Local Form Selection of Chapter 13 Compensation Method within 14 days after the petition is filed. If the debtor’s attorney does not timely file Local Form Selection of Chapter 13 Compensation Method, the attorney will be compensated under D.N.J. LBR 2016-5(c). The selected compensation method may not be changed during any part of the case.

(c) Presumptively Reasonable Fees for Services in Chapter 13 Cases. Subject to D.N.J. LBR 2016-5(h), a chapter 13 debtor’s attorney is not required to file a separate application for allowance of compensation if the total fees and costs, exclusive of the filing fee, charged is:

(1) $4,500 or less in a consumer case; or

(2) $5,000 or less in a case in which the debtor, at the time the petition is filed, is: ( a) engaged in business as defined in 11 U.S.C. § 1304(a); or (b) derives more than 20% of the debtor’s monthly gross income in a self-employed capacity.

(d) Services Included in Presumptively Reasonable Fee. An attorney who is to be compensated under D.N.J. LBR 2016-5(c) must, for the presumptively reasonable fee, represent the debtor in all matters arising in the case up to the date on which the order confirming the debtor’s plan is entered, and those matters, after plan confirmation, necessary to have the debtor’s discharge entered and to have the case closed, including but not limited to the following services:

(1) Meet with the debtor to review the debtor’s financial situation and discuss the bankruptcy process;

(2) Prepare, file and serve the debtor’s petition, plan, schedules, and statement of financial affairs, as well as all necessary amendments;

(3) Provide the chapter 13 trustee with all required documents including payment advices, redacted tax returns, real property valuations, and any other documents requested by the trustee;

(4) Attend the meeting(s) of creditors, confirmation hearing(s), and all other hearings when required including any adjournment thereof;

(5) File motions to avoid pre-petition liens under 11 U.S.C. §522(f) or to reclassify pre-petition liens, petition liens, in whole or in part, under 11 U.S.C. §506(a) based on valuation of collateral, whether included in the plan or whether separately filed;

(6) Review and respond to filed objections to plan confirmation;

(7) Review filed claims and file objections to claims as necessary, object to untimely claims, and modify the plan to conform it to the claims filed, when necessary;

(8) Assist the debtor in petitioning the Court to employ professionals, to seek approval of settlements or compromises and to request approval of compensation for professionals;

(9) Review, and if necessary, oppose motions for stay relief;

(10) Review, and if necessary, oppose motions to dismiss the case;

(11) Represent the debtor in United States Trustee audits;

(12) Ensure a statement of completion of a course concerning personal financial management is filed as required under Bankruptcy Rule 1007(b)(7);

(13) File motions to extend or impose the stay when appropriate;

(14) File motions to complete asset sales contemplated by the plan;

(15) File motions to approve refinancing contemplated by the plan;

(16) file certification in support of discharge;

(17) Take the steps necessary to discharge liens modified under the plan; and

(18) Provide such other legal services as necessary for the administration of the case, including telephone calls and correspondence.

(e) Services Excluded from Presumptively Reasonable Fee. An attorney who is to be compensated under D.N.J. LBR 2016-5(c) may also provide the following services to the debtor and may seek separate compensation under D.N.J. LBR 2016-1 for providing these services:

(1) Defense of any adversary proceeding filed under Bankruptcy Rule 7001;

(2) Representation of debtor in the Court’s Loss Mitigation Program;

(3) Representation in adversary proceedings filed by the debtor to invalidate a lien; and

(4) Representation in post-confirmation motions seeking stay relief, dismissal or conversion of the case, or motions to modify the plan.

(f) Pre-Confirmation Fee Application Required for Amounts Exceeding Presumptively Reasonable Fees. A chapter 13 debtor’s attorney who at the outset of a case charges the debtor more than the presumptively reasonable amounts set forth under D.N.J. LBR 2016-5(c) for providing the services included in D.N.J. LBR 2016-5(d) must file and serve on the chapter 13 trustee and the debtor an application for compensation and reimbursement of expenses in accordance with D.N.J. LBR 2016-1 not later than 7 days before the initial confirmation hearing.

(g) Court Approval Required. After the petition is filed, a debtor’s attorney may not accept or demand from the debtor or any other person any payment for services or cost reimbursement without first obtaining a court order under D.N.J. LBR 2016-1 authorizing the fees and/or costs and specifically permitting direct payment of those fees and/or costs by the debtor.

(h) Dismissal. An attorney who is to be compensated under D.N.J. LBR 2016-5(c) and who seeks payment of fees for services performed, or reimbursement of expenses, in a case dismissed prior to confirmation must file an application in accordance with D.N.J. LBR 2016-1 no later than 14 days after the entry of the order of dismissal. Applications for compensation filed more than 14 days after the date of dismissal will not be considered.

2017 Comment

This rule increases the presumptively reasonable “no-look” chapter 13 fee from $3,500 or less to $4,500 or less in a consumer case. It provides a new separate presumptively reasonable “no-look” chapter 13 fee of $5,000 or less in a business case. The debtor’s attorney must choose the method of compensation for services to be provided in the case within 14 days after the petition is filed. If the attorney fails to timely choose the compensation method the attorney will be compensated pursuant to the “no-look” fee. An attorney who is to be compensated under the “no-look” fee must file a fee application pursuant to D.N.J. LBR 2016-1 if the attorney requires the debtor to pay more than the stated “no-look fee” before the case is filed. After the case is filed, an attorney who is to be compensated under the “no-look” fee may file a fee application pursuant to D.N.J. LBR 2016-1 if the attorney provides required services excluded from the “no-look” fee. These procedures supersede the former short-form supplemental fee application process in all cases filed after [date].

IMPORTANT NOTICE TO THE BAR AND PUBLIC CONCERNING GENERAL ORDER PENDING AMENDMENT OF

D.N.J. LBR 9013-4. MOTIONS: PROPOSED ORDER

UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY

GENERAL ORDER PENDING AMENDMENT OF D.N.J. LBR 9013-4. MOTIONS: PROPOSED ORDER

D.N.J. LBR 9013-4. Motions: Proposed Order

(a) Separate document.

(b) Order Template.

(c) Title.

(d) Order to be submitted.

(e) Objection period.

Caption in Compliance with D.N.J. LBR 9004-1(b)

CERTIFICATION CONCERNING ORDER TO BE SUBMITTED

NAME RELATIONSHIP TO CASE

IMPORTANT NOTICE TO THE BAR AND PUBLIC CONCERNING GENERAL ORDER PENDING ADOPTION OF

D.N.J. LBR 4002-1, CERTIFICATION IN SUPPORT OF DISCHARGE

D.N.J. LBR 4002-1. Certification in Support of Discharge

CERTIFICATION IN SUPPORT OF DISCHARGE

IMPORTANT:

Each debtor in a joint case must file separate Certifications in Support of Discharge.

A discharge will not be issued for a debtor who does not submit a completed Certification in Support of Discharge.

UNITED STATES BANKRUPTCY COURTDISTRICT OF NEW JERSEY

IMPORTANT NOTICE TO THE BAR AND PUBLIC CONCERNING REVISION AND IMPLEMENTATION OF

LOCAL FORMS, CHAPTER 13 PLAN AND MOTIONS AND NOTICE OF CHAPTER 13 PLAN TRANSMITTAL

Please be advised that in anticipation of the addition of Rule 3015.1 to the Federal Rules

of Bankruptcy Procedure, the Board of Judges of the United States Bankruptcy Court for the

District of New Jersey has approved changes to the Court’s Local Forms Chapter 13 Plan and

Motions and Notice of Chapter 13 Plan Transmittal. Pursuant to the attached General Order

Concerning Revision of Chapter 13 Plan and Motions and Notice of Chapter 13 Transmittal,

both Local Forms are effective August 1, 2017.

Dated: June 23, 2017 Jeanne A. Naughton, Clerk

Last revised: August 1, 2017

UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY

In Re: Case No.: ____________________

Judge: ____________________

Debtor(s)

Chapter 13 Plan and Motions

Original Modified/Notice Required Date: _________________

Motions Included Modified/No Notice Required

THE DEBTOR HAS FILED FOR RELIEF UNDER CHAPTER 13 OF THE BANKRUPTCY CODE

YOUR RIGHTS MAY BE AFFECTED

You should have received from the court a separate Notice of the Hearing on Confirmation of Plan, which contains the date of the confirmation hearing on the Plan proposed by the Debtor. This document is the actual Plan proposed by the Debtor to adjust debts.You should read these papers carefully and discuss them with your attorney. Anyone who wishes to oppose any provision of this Planor any motion included in it must file a written objection within the time frame stated in the Notice. Your rights may be affected by this plan. Your claim may be reduced, modified, or eliminated. This Plan may be confirmed and become binding, and included motions may be granted without further notice or hearing, unless written objection is filed before the deadline stated in the Notice. The Court may confirm this plan, if there are no timely filed objections, without further notice. See Bankruptcy Rule 3015. If this plan includes motions to avoid or modify a lien, the lien avoidance or modification may take place solely within the chapter 13 confirmation process. The plan confirmation order alone will avoid or modify the lien. The debtor need not file a separate motion or adversary proceeding to avoid or modify a lien based on value of the collateral or to reduce the interest rate. An affected lien creditor who wishes to contest said treatment must file a timely objection and appear at the confirmation hearing to prosecute same.

THIS PLAN:

DOES DOES NOT CONTAIN NON-STANDARD PROVISIONS. NON-STANDARD PROVISIONS MUST ALSO BE SET FORTH IN PART 10.

DOES DOES NOT LIMIT THE AMOUNT OF A SECURED CLAIM BASED SOLELY ON VALUE OF COLLATERAL, WHICH MAY RESULT IN A PARTIAL PAYMENT OR NO PAYMENT AT ALL TO THE SECURED CREDITOR. SEE MOTIONS SET FORTH IN PART 7, IF ANY.

DOES DOES NOT AVOID A JUDICIAL LIEN OR NONPOSSESSORY, NONPURCHASE-MONEY SECURITY INTEREST. SEE MOTIONS SET FORTH IN PART 7, IF ANY.

Initial Debtor(s)’ Attorney: ___________ Initial Debtor: ______________ Initial Co-Debtor: _______________

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Part 1: Payment and Length of Plan

a. The debtor shall pay $ _______________ per _______________ to the Chapter 13 Trustee, starting on

_________________________ for approximately _______________ months.

b. The debtor shall make plan payments to the Trustee from the following sources:

Future earnings

Other sources of funding (describe source, amount and date when funds are available):

c. Use of real property to satisfy plan obligations:

Sale of real property Description:

Proposed date for completion: ____________________

Refinance of real property: Description: Proposed date for completion: ____________________

Loan modification with respect to mortgage encumbering property: Description: Proposed date for completion: ____________________

d. The regular monthly mortgage payment will continue pending the sale, refinance or loan modification.

e. Other information that may be important relating to the payment and length of plan:

Part 2: Adequate Protection NONE

a. Adequate protection payments will be made in the amount of $ _______________ to be paid to the Chapter 13 Trustee and disbursed pre-confirmation to ______________________________ (creditor).

b. Adequate protection payments will be made in the amount of $ _______________ to be paid directly by the debtor(s) outside the Plan, pre-confirmation to: ______________________________ (creditor).

Part 3: Priority Claims (Including Administrative Expenses)

a. All allowed priority claims will be paid in full unless the creditor agrees otherwise:

Creditor Type of Priority Amount to be Paid

CHAPTER 13 STANDING TRUSTEE

ATTORNEY FEE BALANCE

DOMESTIC SUPPORT OBLIGATION

ADMINISTRATIVE

ADMINISTRATIVE

AS ALLOWED BY STATUTE

BALANCE DUE: $

b. Domestic Support Obligations assigned or owed to a governmental unit and paid less than full amount: Check one:

None

The allowed priority claims listed below are based on a domestic support obligation that has been assigned to or is owed to a governmental unit and will be paid less than the full amount of the claim pursuant to 11 U.S.C.1322(a)(4):

Creditor Type of Priority Claim Amount Amount to be Paid

Domestic Support Obligations assigned or owed to a governmental unit and paid less than full amount:

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Part 4: Secured Claims

a. Curing Default and Maintaining Payments on Principal Residence: NONE The Debtor will pay to the Trustee (as part of the Plan) allowed claims for arrearages on monthly obligations and the debtor shall pay directly to the creditor (outside the Plan) monthly obligations due after the bankruptcy filing as follows:

Creditor Collateral or Type of Debt

Arrearage Interest Rate on Arrearage

Amount to be Paid to Creditor (In Plan)

Regular Monthly Payment(Outside Plan)

b. Curing and Maintaining Payments on Non-Principal Residence & other loans or rent arrears: NONE

The Debtor will pay to the Trustee (as part of the Plan) allowed claims for arrearages on monthly obligations and the debtor will pay directly to the creditor (outside the Plan) monthly obligations due after the bankruptcy filing as follows:

Creditor Collateral or Type of Debt

Arrearage Interest Rate on Arrearage

Amount to be Paid to Creditor (In Plan)

Regular MonthlyPayment(Outside Plan)

c. Secured claims excluded from 11 U.S.C. 506: NONE

The following claims were either incurred within 910 days before the petition date and are secured by a purchase money security interest in a motor vehicle acquired for the personal use of the debtor(s), or incurred within one year of the petition date and secured by a purchase money security interest in any other thing of value:

Name of Creditor Collateral Interest Rate

Amount of Claim

Total to be Paid through the Plan Including Interest Calculation

d. Requests for valuation of security, Cram-down, Strip Off & Interest Rate Adjustments NONE

1.) The debtor values collateral as indicated below. If the claim may be modified under Section 1322(b)(2), the secured creditor shall be paid the amount listed as the “Value of the Creditor Interest in Collateral,” plus interest as stated. The portion of any allowed claim that exceeds that value shall be treated as an unsecured claim. If a secured claim is identified as having “NO VALUE” it shall be treated as an unsecured claim.

NOTE: A modification under this Section ALSO REQUIRES the appropriate motion to be filed under Section 7 of the Plan.

Creditor Collateral Scheduled Debt

TotalCollateralValue

Superior Liens Value of Creditor Interest in Collateral

AnnualInterest Rate

TotalAmountto be Paid

2.) Where the Debtor retains collateral and completes the Plan, payment of the full amount of the allowed secured claim shall discharge the corresponding lien.

e. Surrender NONE

Upon confirmation, the stay is terminated as to surrendered collateral only under 11 U.S.C. 362(a) and that the stay under 11 U.S.C 1301 be terminated in all respects. The Debtor surrenders the following collateral:

Creditor Collateral to be Surrendered Value of Surrendered Collateral

Remaining Unsecured Debt

f. Secured Claims Unaffected by the Plan NONE

The following secured claims are unaffected by the Plan:

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g. Secured Claims to be Paid in Full Through the Plan: NONE

Creditor Collateral Total Amount to be Paid Through the Plan

Part 5: Unsecured Claims NONE

a. Not separately classified allowed non-priority unsecured claims shall be paid:

Not less than $ _______________ to be distributed pro rata

Not less than _______________ percent

Pro Rata distribution from any remaining funds

b. Separately classified unsecured claims shall be treated as follows:

Creditor Basis for Separate Classification Treatment Amount to be Paid

Part 6: Executory Contracts and Unexpired Leases NONE

(NOTE: See time limitations set forth in 11 U.S.C. 365(d)(4) that may prevent assumption of non-residential real property leases in this Plan.)

All executory contracts and unexpired leases, not previously rejected by operation of law, are rejected, except the following, which are assumed:

Creditor Arrears to be Cured in Plan

Nature of Contract or Lease

Treatment by Debtor Post-Petition Payment

Part 7: Motions NONE

NOTE: All plans containing motions must be served on all potentially affected creditors, together with local form, Notice of Chapter 13 Plan Transmittal, within the time and in the manner set forth in D.N.J. LBR 3015-1. A Certification of Service, Notice of Chapter 13 Plan Transmittal and valuation must be filed with the Clerk of Court when the plan and transmittal notice are served.

a. Motion to Avoid Liens Under 11. U.S.C. Section 522(f). NONE

The Debtor moves to avoid the following liens that impair exemptions:

Creditor Nature of Collateral

Type of Lien Amount of Lien

Value of Collateral

Amount of ClaimedExemption

Sum of All Other Liens Against the Property

Amount of Lien to be Avoided

b. Motion to Avoid Liens and Reclassify Claim from Secured to Completely Unsecured. NONE

The Debtor moves to reclassify the following claims as unsecured and to void liens on collateral consistent with Part 4 above:

Creditor Collateral Scheduled Debt

TotalCollateralValue

Superior Liens Value of Creditor’s Interest in Collateral

Total Amount of Lien to be Reclassified

8

c. Motion to Partially Void Liens and Reclassify Underlying Claims as Partially Secured and Partially Unsecured. NONE

The Debtor moves to reclassify the following claims as partially secured and partially unsecured, and to void liens on collateral consistent with Part 4 above:

Creditor Collateral Scheduled Debt

TotalCollateralValue

Amount to be Deemed Secured

Amount to be Reclassified as Unsecured

Part 8: Other Plan Provisions

a. Vesting of Property of the Estate

Upon confirmation

Upon discharge

b. Payment Notices Creditors and Lessors provided for in Parts 4, 6 or 7 may continue to mail customary notices or coupons to the Debtor notwithstanding the automatic stay.

c. Order of Distribution The Standing Trustee shall pay allowed claims in the following order:

1) Ch. 13 Standing Trustee commissions

2) ___________________________________________________________

3) ___________________________________________________________

4) ___________________________________________________________

d. Post-Petition Claims

The Standing Trustee is, is not authorized to pay post-petition claims filed pursuant to 11 U.S.C. Section 1305(a) in the amount filed by the post-petition claimant.

Part 9: Modification NONE

If this Plan modifies a Plan previously filed in this case, complete the information below.

Date of Plan being modified: _________________________.

Explain below why the plan is being modified: Explain below how the plan is being modified:

Are Schedules I and J being filed simultaneously with this Modified Plan? Yes No

Part 10: Non-Standard Provision(s): Signatures Required

Non-Standard Provisions Requiring Separate Signatures:

NONE

Explain here:

Any non-standard provisions placed elsewhere in this plan are void.

The Debtor(s) and the attorney for the Debtor(s), if any, must sign this Certification.

I certify under penalty of perjury that the plan contains no non-standard provisions other than those set forth in this final paragraph.

Date: ______________________________ ______________________________ Attorney for the Debtor

Date: ______________________________ ______________________________ Debtor

Date: ______________________________ ______________________________ Joint Debtor

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Signatures

The Debtor(s) and the attorney for the Debtor(s), if any, must sign this Plan.

Date: ______________________________ ______________________________ Attorney for the Debtor

I certify under penalty of perjury that the above is true.

Date: ______________________________ ______________________________ Debtor

Date: ______________________________ ______________________________ Joint Debtor

UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY

Caption in compliance with D.N.J. LBR 9004-1(b)

In Re:

Case No.: __________________

Hearing Date: __________________

Judge: __________________

NOTICE OF CHAPTER 13 PLAN TRANSMITTAL

The enclosed plan, modified plan is proposed by the debtor and was filed on _____________________. It has been served on you because the plan contains motions that may adversely affect your interest.

Your rights may be affected by this plan. Your claim may be reduced, modified, or eliminated. This Plan may be confirmed and become binding, and included motions may be granted without further notice or hearing, unless written objection is filed before the deadline stated in the Notice. The Court may confirm this plan, if there are no timely filed objections, without further notice. See Bankruptcy Rule 3015. This plan includes motions to avoid or modify a lien, the lien avoidance or modification may take place solely within the chapter 13 confirmation process. The plan confirmation order alone will avoid or modify the lien. The debtor need not file a separate motion or adversary proceeding to avoid or modify a lien based on value of the collateral or to reduce the interest rate. An affected lien creditor who wishes to contest said treatment must file a timely objection and appear at the confirmation hearing to prosecute same.

Real Property:

The debtor(s) has valued real property located at ___________________________________

___________________ [address] at $________________. The debtor(s) believes the first lien on the

property to be in the approximate amount of $_____________ [insert other liens as appropriate]. As such,

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the debtor(s) believes there is inadequate equity available to satisfy your lien and seeks through the plan

to reduce, modify or eliminate your lien.

The debtor’s valuation of the property is based on: (a) comparative market analysis; (b) broker

price opinion; (c) appraisal; or (d) other: _____________________________, a copy of which is

attached. All forms of relief sought by motion appear in Part 7 of the plan.

Personal Property:

The debtor(s) has valued personal property described as: ___________________________

______________________________________________________ at $________________. The debtor(s)

believes the lien on the property to be in the approximate amount of $_______________ [insert other liens as

appropriate]. As such, the debtor(s) believes there is inadequate equity available to satisfy your lien and

seeks through the plan to reduce, modify or eliminate your lien.

The debtor’s valuation of the property is based on: (a) broker price opinion; (b) appraisal; or (c)

other: _____________________________, a copy of which is attached. All forms of relief sought by

motion appear in Part 7 of the plan.

The Confirmation Hearing is scheduled for ______________________. Objections to any

relief sought in the plan, including relief sought by motion, must be filed with the Clerk of the

Bankruptcy Court no later than 7 days prior to the confirmation hearing.

YOU SHOULD CONSULT WITH AN ATTORNEY PROMPTLY, SINCE ENTRY OF

AN ORDER OF CONFIRMATION WILL BIND YOU TO ALL OF THE TERMS OF THE

CONFIRMED PLAN.

rev.8/1/17