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L.B.R. 2083-1. Chapter 13 – General

(a)  Pre-confirmation Payments Pursuant to 11 U.S.C. § 1326(a)(1).  Unless otherwise ordered by the Court, all pre-confirmation adequate protection payments made by the debtor pursuant to 11 U.S.C. § 1326(a)(1) must be paid to the chapter 13 trustee, not the secured claimant.  The pre-confirmation plan payments to the trustee must include the amount required under 11 U.S.C. § 1326(a)(1), plus the necessary trustee’s fee.

(b)  Calculation of Adequate Protection.  For the purpose of this Rule, calculation of adequate protection is calculated as 1% of the outstanding principal balance due as of the date of the filing of the petition, unless otherwise ordered by the Court.

(c)  Creditor’s Rights.  Payment of pre-confirmation adequate protection is without prejudice to the secured creditor’s right to object to confirmation of the debtor's plan or to seek determination as to the value of the claim or the amount needed to provide adequate protection.

(d)  Pre-confirmation Disbursements.  Pre-confirmation disbursements by the chapter 13 trustee under 11 U.S.C. § 1326(a)(1) are hereby authorized without further order, but such disbursements must not be made unless such creditor has filed a proof of claim with the Court.  Pre-confirmation disbursements under 11 U.S.C. § 1326(a)(1) must commence within 30 days of filing the proof of claim, unless the trustee has not received sufficient or good funds to make such payment.  The trustee is authorized to deduct all 11 U.S.C. § 1326(a)(1) pre-confirmation disbursements from an allowed claim and to retain the amount necessary to pay the trustee’s statutory fee based upon the pre-confirmation payments distributed by the trustee.