You are here

RULE 3012-1


  1. In cases filed under Chapter 11:
    1. If the plan proponent seeks to value collateral through the disclosure statement and confirmation process, other than by motion, the plan proponent shall serve all creditors a copy of any plan and disclosure statement and any amendment thereto filed in the case. The value of property set forth in the disclosure statement filed pursuant to 11 U.S.C. § 1125 shall be deemed at confirmation to be the value of the property for purposes of the plan and confirmation of the plan, including the treatment of creditors under the plan, unless not less than seven (7) days prior to the hearing on confirmation a party in interest has filed a motion pursuant to Bankruptcy Rule 3012, in which event such values shall be as determined by the Court.
    2. The disclosure statement shall include the plan proponent's basis or justification for all values shown.
    3. If the plan proponent seeks to value collateral pursuant to subsection (A)(1) of this rule, the title of the disclosure statement shall include a statement that provides “AND NOTICE OF PROPOSED VALUATION OF PROPERTY” or words to that effect.
  2. In cases filed under Chapter 12 or 13:
    1. Upon the filing of the plan or within seven (7) days thereafter, the debtor shall file a separate notice and serve it on each secured creditor whose claim(s) are being impaired under the plan of the value of the collateral that secures their claim. The notice shall contain the following information:
      1. The value of the collateral and the basis or justification for the value shown;
      2. In a case under Chapter 13, whether the collateral is or is not of a kind described in § 1325(a)(9);
      3. The proposed use or disposition of the collateral, i.e., retain or surrender; and
      4. If the debtor proposes to surrender the collateral in satisfaction of all or a portion of the claim based on the valuation, the notice shall so state.
    2. The debtor's attorney, or the debtor if the debtor is self-represented, shall file a certificate of service to evidence proper service of the notice. Service shall be made as provided by Bankruptcy Rule 7004. The value of property subject to liens or security interests as noticed shall be deemed to be the value of the property for purposes of confirmation and treatment of such creditor pursuant to a plan unless no later than thirty (30) days after proper service of such notice any party in interest files a motion to value collateral or motion to determine secured status pursuant to Bankruptcy Rule 3012.
    3. The notice sent to a secured creditor pursuant to this rule shall notify such creditor, in large, bold-face type appearing just under the title of the notice, that failure to file a timely motion to value collateral or motion to determine secured status will result in such collateral being valued at the amount listed for purposes of confirmation of the plan and treatment of such creditor’s claim pursuant to the plan.
    4. No such notice is necessary to secured creditors whose claims are impaired only by a proposed change in the interest rate.
  3. A motion to value property or motion to determine secured status shall state the value of the property as alleged by the moving party and the facts or circumstances supporting such value and shall be accompanied by an appraisal or other evidence of value. A motion to value or motion to determine secured status shall include a certification as required by Local Rule 7007-1. The appraisal or other evidence of value shall be filed and a copy served upon all adverse parties who are required to be served with a copy of the motion. Any party who contests the motion and desires to appear and be heard on the issue of value shall file an objection to such motion within fourteen (14) days from the date of the service of the motion to value and shall file and serve not later than seven (7) days prior to the hearing an appraisal or other evidence of value, unless such party has already filed valuation evidence through a reasonably contemporaneous filing under this rule, such as a plan proponent’s disclosure statement under subdivision (A) or a notice under subdivision (B).
  4. In any case or proceeding in which the value of real property is an issue and where a party intends to present appraisal testimony, the appraisal report and a statement of the qualifications of the appraisal witness shall be filed with the Court and served on all opposing parties as soon as the report first becomes available but in no case less than seven (7) days before the trial or hearing wherein the testimony is to be presented.
  5. All objections to the admissibility of the appraisal report or the qualifications of the appraiser as an expert shall be filed and served upon the appraisal's proponent no less than two (2) days prior to the trial or hearing at which the testimony is to be presented. Absent any objections, the report shall be admitted into evidence without further testimony.
  6. Admission into evidence of an appraisal report shall constitute the complete direct examination of an appraiser witness. Cross examination of the witness will begin immediately upon admission of the report followed by redirect and re-cross.


Advisory Committee Notes

2023 Amendment

The amended rule includes only stylistic changes for purposes of internal consistency and/or to correct grammatical errors.

2020 Amendment

The amended rule includes both stylistic and substantive changes. The format of subdivisions is changed to maintain a consistent style across all rules. Subdivision (A)(3) is added and subdivision (B) is amended to require prominent notice of valuation issues in Chapter 11 disclosure statements and Chapter 12 and 13 plans. Subdivision (B) is amended to relocate and include the former freestanding note regarding the inapplicability of notice when the only impairment is a modified interest rate. Subdivision (B) is also amended to remove any reference to filing by negative notice as exclusively within the scope of Local Rule 2002-2. Subdivision (B)(1) is amended to reduce the standard response time from fifteen (15) to fourteen (14) days, consistent with recent standardization of seven-day multiples of time limits in other procedural rules.