New Chapter 13 Form Plan Now Being Used In The Northern District Of California Bankrutpcy Courts

For chapter 13 cases filed after January 1, 2023, in the bankruptcy courts for the Northern District of California, all chapter 13 debtors when proposing a plan or a plan modification are required to utilize an updated standard form chapter 13 plan. A copy of the new form plan can be obtained from the court’s website: https://www.canb.uscourts.gov

Failure to use the correct Chapter 13 Form plan will result in objections and potentially the dismissal of the case.

The Northern District of California comprises four divisions:   Santa Rosa, San Francisco, Oakland and San Jose.  The Santa Rosa division covers the counties of Del Norte, Mendocino, Humbolt, Napa, Sonoma and Lake. The San Francisco division covers the counties of San Francisco, Marin and San Mateo. That division has the following judges: the Honorable Dennis Montali and the Honorable Hannah L. Blumenstiel. The San Jose division covers the counties of Santa Clara, Santa Cruz, Monterey and San Benito. That division has the following judges: the Honorable Stephen L. Johnson and the Honorable M. Elaine Hammond.   The Oakland division covers the counties of Alameda and Contra Costa. That division has the following judges: the Honorable William Lafferty and the Honorable Charles Novack.  A person must file for bankruptcy relief in the division where he or she resides.

The form chapter 13 plan must be filled out and filed by each person who files chapter 13 bankruptcy in the Northern District of California.

Filling it out can be tricky and it is recommended to have the assistance of competent bankruptcy counsel. The plan basically sets forth the following items:

• How much you will pay each and every month to the chapter 13 trustee and for how many months (in most cases a minimum 36 months, maximum 60 months).
• The treatment of car loans: identification of the vehicle, the lender, the amount of the car loan and the proposed monthly payment amount.
• The treatment of mortgage claims: the identification of the property, the lender, and the amount of the monthly payment. If there are any mortgage arrears, provisions must provide how the arrears will be cured over time.
• The treatment of any outstanding child or spousal sport claims.
• The treatment of any outstanding priority federal or state tax claims.
• The treatment of general unsecured claims like credit cards and medical debts.

Additional provisions can be set forth such as whether certain leases will be assumed or rejected, whether certain mortgages and liens are stripped, and whether ongoing mortgage payments will be paid by the debtor or the chapter 13 trustee. The Chapter 13 form plan also contains substantial language that is directed towards creditors and other interested parties. If you have any questions on chapter 13 plans or what chapter 13 bankruptcy is all about, contact David A. Arietta at (925) 472-8000.