Rule 3002.1 United States Federal Rules of Bankruptcy Procedure

Rule 3002.1 of the Federal Rules of Bankruptcy Procedure is about Notice Relating to Claims Secured by a Security Interest in the Debtor’s Principal Residence in a Chapter 13 Case. It is under Part III (Claims and Distribution to Creditors and Equity Interest Holders; Plans) of the Rules.

(a) In General. This rule applies in a Chapter 13 case to a claim that is secured by a security interest in the debtor’s principal residence and for which the plan provides for the trustee or debtor to make contractual installment payments. Unless the court orders otherwise, the notice requirements of this rule cease when an order terminating or annulling the automatic stay related to that residence becomes effective.

(b) Notice of a Payment Change.

(1) Notice by the Claim Holder. The claim holder must file a notice of any change in the amount of an installment payment—including any change resulting from an interest-rate or escrow-account adjustment. At least 21 days before the new payment is due, the notice must be filed and served on:

· the debtor;

· the debtor’s attorney; and

· the trustee.

If the claim arises from a home-equity line of credit, the court may modify this requirement.

(2) Party in Interest’s Objection. A party in interest who objects to the payment change may file a motion to determine whether the change is required to maintain payments under § 1322(b)(5). Unless the court orders otherwise, if no motion is filed by the day before the new payment is due, the change goes into effect.

(c) Fees, Expenses, and Charges Incurred After the Case Was Filed; Notice by the Claim Holder. The claim holder must file a notice itemizing all fees, expenses, and charges incurred after the case was filed that the holder asserts are recoverable against the debtor or the debtor’s principal residence. Within 180 days after the fees, expenses, or charges were incurred, the notice must be served on:

· the debtor;

· the debtor’s attorney; and

· the trustee.

(d) Filing Notice as a Supplement to a Proof of Claim. A notice under (b) or (c) must be filed as a supplement to the proof of claim using Form 410S-1 or 410S-2, respectively. The notice is not subject to Rule 3001(f).

(e) Determining Fees, Expenses, or Charges. On a party in interest’s motion filed within one year after the notice in (c) was served, the court must, after notice and a hearing, determine whether paying any claimed fee, expense, or charge is required by the underlying agreement and applicable nonbankruptcy law to cure a default or maintain payments under § 1322(b)(5).

(f) Notice of the Final Cure Payment.

(1) Content of a Notice. Within 30 days after the debtor completes all payments under a Chapter 13 plan, the trustee must file a notice:

(A) stating that the debtor has paid in full the amount required to cure any default on the claim; and

(B) informing the claim holder of its obligation to file and serve a response under (g).

(2) Serving the Notice. The notice must be served on:

· the claim holder;

· the debtor; and

· the debtor’s attorney.

(3) The Debtor’s Right to File. The debtor may file and serve the notice if:

(A) the trustee fails to do so; and

(B) the debtor contends that the final cure payment has been made and all plan payments have been completed.

(g) Response to a Notice of the Final Cure Payment.

(1) Required Statement. Within 21 days after the notice under (f) is served, the claim holder must file and serve a statement that:

(A) indicates whether:

(i) the claim holder agrees that the debtor has paid in full the amount required to cure any default on the claim; and

(ii) the debtor is otherwise current on all payments under § 1322(b)(5); and

(B) itemizes the required cure or postpetition amounts, if any, that the claim holder contends remain unpaid as of the statement’s date.

(2) Persons to be Served. The holder must serve the statement on:

· the debtor;

· the debtor’s attorney; and

· the trustee.

(3) Statement to be a Supplement. The statement must be filed as a supplement to the proof of claim and is not subject to Rule 3001(f).

(h) Determining the Final Cure Payment. On the debtor’s or trustee’s motion filed within 21 days after the statement under (g) is served, the court must, after notice and a hearing, determine whether the debtor has cured the default and made all required postpetition payments.

(i) Failure to Give Notice. If the claim holder fails to provide any information as required by (b), (c), or (g), the court may, after notice and a hearing, take one or both of these actions:

(1) preclude the holder from presenting the omitted information in any form as evidence in a contested matter or adversary proceeding in the case— unless the failure was substantially justified or is harmless; and

(2) award other appropriate relief, including reasonable expenses and attorney’s fees caused by the failure.