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RULE 3012-2


Notwithstanding the procedure for valuation of collateral of certain impaired claims in Chapter 12 and 13 plans pursuant to Local Rule 3012-1(B), actions to determine secured status and strip junior lien on the debtor’s principal residence in Chapter 13 cases shall be brought by motion and subject to the following procedures:

  1. A motion filed under this rule shall be docketed with an applicable “Motion to Determine Secured Status” event and shall be filed in the following manner:
    1. The motion shall include as part of the title “determine secured status and strip junior lien on the debtor’s principal residence” and shall not be filed before the earlier of:
      1. the date the affected creditor has filed a proof of claim; or
      2. the expiration of the time to file claims (claims bar date). A premature motion to value will be denied without prejudice.
    2. The motion shall:
      1. clearly state:
        1. if the secured claim consists of a mortgage, all known parties who may have an interest in the mortgage;
        2. the loan number (formatted as xxxx1234) and recording information of all mortgage lien(s) affected by the Motion;
        3. the legal description and street address of the subject property;
        4. the basis of the valuation – private appraisal, county valuation, or other; and
        5. the balance due on and identity of the holder of all mortgages or liens senior or superior to the subject lien;
      2. be verified, or supported by an affidavit or declaration (pursuant to 28 U.S.C. § 1746) of the debtor;
      3. modify any applicable negative notice legend giving interested parties thirty (30) days, rather than twenty-one (21) days, to file an objection;
      4. certify proper service on the following parties:
        1. all parties identified in Bankruptcy Rule 7004(b);
        2. the person or party designated to receive notices on any proof of claim filed by an interested party;
        3. the attorney of record, if any, for such creditor; and
        4. the Chapter 13 Trustee.
  2. The movant shall submit a proposed order no later than fourteen (14) days after the expiration of the thirty (30) day objection period.
  3. The debtor’s Chapter 13 plan shall provide for the stripping off of the lien, conditioned on the debtor’s obtaining a discharge or upon further Order of the Court.
  4. The movant must file a separate motion for each mortgage or lien it seeks to “strip.”


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 to this narrow rule regarding “lien stripping” motions directed to the debtor’s principal residence in Chapter 13 cases. The rule title is amended to avoid confusion with Local Rule 3012-1. The format of subdivisions is changed to maintain a consistent style across all rules. Various subdivisions are amended to remove any reference to filing by negative notice as exclusively within the scope of Local Rule 2002-2, except for subdivision (A)(2)(c) which modifies the standard negative-notice period. Subdivision (A)(1)(e) is relocated to the subdivision (A) header and is amended to apply a consistent style for reference to the CM/ECF system. At the time of this amendment, there are two secured-status CM/ECF events, specifically titled “Motion to Determine Secured Status & Strip Jr Lien of Govt Agency on Dbtr's Principal Residence” and “Motion to Determine Secured Status & Strip Junior Lien on Dbtr's Principal Residence (Neg Ntc).” The rule requires additional information beyond prior practice and is clarified to require a separate motion for each lien to be stripped.