Opinion
Case No. 11-36776
03-18-2014
In re: MICHAEL CRAIG TIBBETTS, Debtor
This document has been electronically entered in the records of the United States Bankruptcy Court for the Southern District of Ohio.
IT IS SO ORDERED.
_______________
Guy R. Humphrey
United States Bankruptcy Judge
Judge Humphrey
Chapter 13
Order Denying as Moot Motion for Reconsideration (Doc. 32), Vacating Order
Denying Motion for Modification (Doc. 30) and Ordering Other Matters
This matter is before the court on the Debtor's Motion for Reconsideration of Order Denying Modification of Plan Post Confirmation Without Prejudice (doc. 32), which requests that the court reconsider its determination of the Motion for Modification of Plan Post Confirmation and Notice (doc. 28) set forth in the Order Denying Motion for Modification of Plan Post Confirmation (Doc. 28), Without Prejudice (doc. 30).
On March 13, 2014 the court held a hearing on the Motion for Reconsideration. The hearing was attended by Wayne P. Novick, counsel for the Debtor; Debtor Michael Craig Tibbetts; and Scott G. Stout, counsel for the Chapter 13 Trustee. Following the arguments of counsel, the court took the matter under advisement.
In light of the Amended Certificate of Service (doc. 35) filed by the Debtor's counsel on March 14, 2014, which certifies service of the Motion for Modification (doc. 28) on all creditors and parties in interest, the Motion for Reconsideration (doc. 32) is hereby denied as moot. In addition, the court's prior Order Denying the Motion for Modification (doc. 30) is vacated.
Upon expiration of the 21 day response period, plus 3 days for mailing, in the absence of an objection, counsel for the Debtor may submit a proposed order granting the Motion for Modification (doc. 28).
Further, upon consideration of the arguments of counsel and the provisions of Federal Rules of Bankruptcy Procedure 2002(a) and 3015(g) and Local Bankruptcy Rules 3015-2(b) and 9013-3(b), this court will require service upon all creditors, secured and unsecured, any time a debtor seeks to modify a confirmed Chapter 13 plan to reduce monthly payments while maintaining the same dividend to non-priority unsecured creditors. The court will require such service because the claims of unsecured creditors may be impaired due to a possible delay in receipt of dividend payments or the potential for a reduced dividend if a case is dismissed prior to the completion of the plan. The two exceptions to this requirement will be 1) if the debtor has provided a sufficient explanation that the payment reduction is due solely to surrender of the debtor's residence and that the debtor will incur an equivalent or greater housing expense or 2) the plan, prior to the proposed modification, did not provide for any dividend to non-priority unsecured creditors. In those circumstances, the court will require service on only those parties required to be served by Local Bankruptcy Rule 9013-3, which includes any directly affected secured creditor(s).
IT IS SO ORDERED. Copies to: Default List