Revised Chapter 13 Confirmation Order
Beginning March 17, 2014, there will be two changes to Paragraph IV ("Default on Direct Payments to Secured Creditors") of the Court’s standard Chapter 13 Confirmation Order with respect to mortgages. First, creditors will no longer be able to use this provision of the Confirmation Order to obtain ex parte stay relief with respect to a debtor’s principal residence. Second, the default period for mortgage creditors secured by liens against non-homestead real property will be reduced from 90 to 60 days, expediting ex parte stay relief for these creditors. No changes are being made with respect to claims secured by personal property.
The changes are being made in light of the current economic climate and the Court’s new Loss Mitigation Program. Requiring a mortgage creditor to obtain stay relief with respect to a debtor’s principal residence through motion practice will provide the debtor and debtor’s counsel with the benefit of a Certification of Payment History (Local Bankruptcy Rule 4001-1(b)) and, perhaps, the opportunity to use the Court’s Loss Mitigation Program prior to the stay being lifted.
Click the link below to preview the revised order.