CHAPTER 12 - GENERAL
- Duties of the Chapter 12 Debtor
- At least seven (7) days before the first meeting of creditors, the debtor must provide the Chapter 12 Trustee with a summary of operations form, applicable form available online.
- At least seven (7) days before the first meeting of creditors, the debtor must provide income tax returns for the two (2) years immediately preceding the filing of the bankruptcy petition.
- At least seven (7) days before the confirmation hearing, the debtor must file and provide a copy to the Chapter 12 Trustee of the Chapter 12 Plan for a three (3) year period indicating projected disposable income, and a liquidation analysis reflecting the distributions to unsecured creditors if the case proceeds as a Chapter 7.
- The debtor shall file and provide a copy to the Chapter 12 Trustee the monthly cash receipts and disbursements form, available online, beginning with the filing of the bankruptcy petition and ending when the payments under the plan are complete. The debtor shall file this form no later than the twenty-first (21st) day following the end of the month and shall include all of the debtor's receipts and/or income, in cash or by check, received during the month. The receipts should be itemized by kind, quantity, and dollar amount. All expenses paid in cash or by check should be itemized.
- Within sixty (60) days after the end of a calendar year (or fiscal year), the debtor must provide the following to the Chapter 12 Trustee: Internal Revenue Service Form Schedule 1040 F together with all supporting schedules of Schedule F, and Form 4835, for any part of the calendar or taxable period ending after the date on which the Chapter 12 petition was filed. The Schedule F and Form 4835 must report all income and all expenses to the end of the calendar (or fiscal) year.
- All payments to the Chapter 12 Trustee shall be in the form of a cashier’s check or money order.
- Pre-Confirmation Matters in Chapter 12
- In all cases filed under Chapter 12, the debtor shall file a statement which contains “adequate information” about: (a) the debtor's ability to make all of the payments under the plan and to comply with the plan, (b) the financial condition of the debtor, including assets and liabilities of the debtor as well as the income and expenses of the debtor for the preceding calendar year, (c) the value of any property of the estate, whether being retained by the debtor or surrendered, which is subject to a lien or security interest as well as a description of the basis for such value, (d) an analysis of the amount which would be received by unsecured creditors if the estate of the debtor were to be liquidated under Chapter 7 of Title 11, and (e) a projection of the net disposable income of the debtor for the term of the plan.
- For purposes of this rule, "adequate information" shall mean information of a kind, and in sufficient detail, as far as reasonably practicable in light of the nature and history of the debtor and the condition of the debtor's books and records, that will enable creditors and the trustee to make an informed judgment about confirmation of the plan.
- In a Chapter 12 case, the pre-confirmation statement shall be filed upon the filing of a plan. Copies of the pre-confirmation statement shall be served upon all creditors, the trustee, the United States trustee, and other persons who have requested notice pursuant to Bankruptcy Rule 2002.
- All Chapter 12 individual debtors shall file with the Court and serve on the Chapter 12 Trustee a certification that the debtor has paid all amounts to be paid under a domestic support obligation that first became payable after the date of the filing of the Chapter 12 petition if the debtor is required by a judicial or administrative order, or by statute, to pay such domestic support obligation. If the debtor is not required to pay any amounts under a domestic support obligation, then the debtor shall file a certification stating that the debtor is not required to pay said amounts. The applicable form is available online.
- Local Rules 2081-1(B) and 3022-1 shall apply in Chapter 12 cases.
Advisory Committee Notes
The amended rule includes stylistic changes for purposes of internal consistency. This amended rule also includes stylistic changes to refer to applicable forms and the Local Rules Links page that provides links to various Official Forms and Local Forms. At the time of this amendment, the applicable forms were Local Forms 12-9 (Summary of Operations – Family Farmer), 12-10 (Monthly Cash Receipts & Disbursements), 12-13 (Pre-Confirmation Statement Regarding Individual Debtor’s Domestic Support Obligations and Filing of Tax Returns, as Applicable, pursuant to Code and Rule Requirements), and 12-37 (Statement/Certification Regarding Requirements for Discharge in a Chapter 12 Case).
The amended rule includes both stylistic and substantive changes. The format of subdivisions is changed to maintain a consistent style across all rules. Former Subdivisions (A)(1), (A)(3), and (B)(4) are amended to maintain a consistent style for references to the court’s website. Former subdivision (A)(1) is divided into two subdivisions to separate the Summary of Operations and Income Tax Returns provisions. Former subdivision (A)(3) is further amended to extend the time for filing the reports from the 15th day to the 21st day following the end of the month, to be more consistent with Chapter 11 practice. Subdivision (C) is amended to conform to the separation of Rules 2081-1 and 3022-1. Other changes are stylistic and are not intended to effect a substantive change.