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Rule 3015-4. Dismissal on Payment Default

Part III. Claims and Distribution to Creditors and Equity Interest Holders; Plans

            A.         Notice of Default. If the debtor defaults on a plan payment to the trustee, the trustee may file and serve the debtor a notice of payment default in a case under Subchapter V of Chapter 11, Chapter 12, or Chapter 13. The notice must state the amount of the default and the date on which the next scheduled payment is due. The notice must also state that under this Local Rule, the court may dismiss the debtor’s bankruptcy case unless, within 21 days after the notice, the debtor either cures the default and makes all payments due or makes other arrangements acceptable to the trustee. The notice must state the specific calendar date by which the payment default must be cured.

            B.         Cure or Dispute. Within 21 days after the mailing of a notice of payment default, the debtor must dispute the default exists, or cure the payment default. If the debtor disputes the payment default exists, the debtor must file a request for hearing stating facts that support a default does not exist. A hearing will be scheduled on affidavit evidence during which the debtor must offer evidence establishing all plan payments were made and a default does not exist. The filing of a contested matter, including an amended or modified plan, will not constitute a dispute as to the existence of the default and will not, alone, preclude dismissal.

            C.        Additional Time. The court will not act on a request for hearing for additional time to cure a payment default or to take other action. The debtor must make these requests directly to the trustee.

            D.         Trustee’s Declaration. The court may dismiss the debtor’s case without further notice or hearing if the trustee files a declaration establishing the trustee complied with this Local Rule, served the notice of payment default on the debtor, and the debtor did not timely cure the default.