New EDKY Plan; New No-Look Fee Effective With Cases Filed On or After 12/1/21

The Eastern District of Kentucky has a new chapter 13 plan form applicable to cases filed on or after today (Dec. 1, 2021). You can find a PDF version here. I’ll have a fillable Word form available shortly.

Dec. 2, 2021 update: Here is an MS Word document version of the new plan form. An MS Word template will be available on the main website, www.ch13edky.com .

The plan changes are as follows:

Treatment of Secured Claims:

There is a new general provision in Part 3 of the plan applicable to all secured claims dealt with in the plan. The new provision:

(1) addresses lien retention rights of secured creditors (which was previously applicable only to claims valued under Sec. 3.2);

(2) deals with how an order granting relief from stay as to one creditor affects claims of other creditors with liens in the same collateral (which was previously applicable only for claims treated in Sec. 3.1).

The new provision reads:

Each holder of an allowed secured claim, which is paid in full 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. If relief from the automatic stay is ordered as to any item of collateral listed below, then, unless otherwise ordered by the court, all payments under this plan as to that collateral will cease, all secured claims based on that collateral will no longer be treated by the plan, and the Trustee is authorized to cease all payments to the secured creditor.

Please thank Tom Canary for these much-needed changes.

   “No-Look Fee” for Debtors’ Attorneys                

The presumptively reasonable fee in Sec. 4.3 of the plan and in KYEB-LBR 2016-2 has been increased to $4,000. Debtors’ attorneys must still adhere to the requirements of local rules and the Rights and Responsibilities of Chapter 13 Debtors and Their Attorneys.  

Please thank John Simms for seeking this boost in compensation.

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