Form 35-14

The practitioner should use this form to object to confirmation of a Chapter 13 plan on behalf of a secured creditor.

Warning:      The local rules of the Bankruptcy Courts for the four districts in Texas have specific requirements for the content of the captions of pleadings and orders, and they are all different. The practitioner should consult the local rules of the bankruptcy court for the district in which he intends to file for the specific requirements as to the content of captions. See section 35.1:2 in this chapter.

[Caption for an adversary proceeding. See form 35-3 in this chapter.]

Objection to Confirmation of Debtor’s Chapter 13 Plan by
Secured Creditor

[Name of creditor], Creditor, a secured creditor in this case, files this Objection to Con­firmation of Debtor’s Chapter 13 Plan and, in support of this Objection, states as follows:

1.[Name of debtor], Debtor, filed for protection under Chapter 13 of the Bankruptcy Code on [date].

2.Confirmation of Debtor’s Chapter 13 plan is scheduled for [date].

3.Creditor is the holder of a claim against Debtor that is secured by the [describe collateral, including any identification number] (the “Property”).

4.The value of the Property, as of the effective date of Debtor’s Chapter 13 plan, is $[amount]. The value of the Property shown on Debtor’s schedule is only $[amount]. Credi­tor, therefore, objects because Debtor is undervaluing the amount of Debtor’s allowed secured claim.

5.Debtor’s Chapter 13 plan proposes that Debtor retain the Property, that Creditor retain his lien thereon, and that Creditor receive monthly distributions of $[amount] from the trustee. Creditor objects because the plan does not propose to pay Debtor the full amount of the value of its secured claim as of the effective date of the plan to which Debtor is entitled under 11 U.S.C. § 1325(a)(5)(B)(ii).

6.Debtor’s Chapter 13 plan provides that Debtor will make monthly payments of $[amount] to the trustee over a period of [number] months. Creditor objects because, under 11 U.S.C. § 1322(c), the plan may not provide for payments over a period that is longer than thirty-six months unless this Court, for cause, approves a longer period. Creditor respectfully submits that Debtor has failed to show good cause for extending the plan beyond thirty-six months.

7.Debtor’s plan proposes to pay Creditor interest of [percent] percent on his claim. Creditor objects to confirmation of Debtor’s plan because, as of the effective date of the plan, the value of the Property to be distributed is less than the allowed amount of Debtor’s claim in direct violation of 11 U.S.C. § 1325(a)(5)(B)(ii).

8.Creditor demands a rate of interest equivalent to the rate that could have been obtained had it foreclosed on the Property and reinvested the proceeds in loans of equivalent duration and risk or, alternatively, the contract rate of interest of [percent] percent.

9.Creditor objects because Debtor’s Chapter 13 plan fails to provide a “drop dead” clause, which would allow Creditor at some point in time to exercise its rights as a secured creditor should Debtor default under the terms of the Chapter 13 plan, specifically if Debtor fails to make the required monthly payments to the trustee or fails to keep proper insurance on the Property.

Creditor respectfully prays for an Order denying confirmation of the Debtor’s Chapter 13 plan and granting all further relief to which Creditor may be entitled.

   
[Name]
Attorney for [name of client]
State Bar No.:
[E-mail address]
[Address]
[Telephone]
[Telecopier]