An updated version of the Local Chapter 13 Plan Form for use in the Central District of Illinois is now available. The update consists of an additional provision under Part 9.B. regarding avoidance of liens through plan confirmation. The purpose of the addition is to clarify that the use of Part 9.B. is limited to liens that may be avoided by motion but that the Federal Rules of Bankruptcy Procedure also permit to be avoided through the terms of a confirmed plan. See Fed. R. Bankr. P. 3012(b), 4003(d). Part 9.B. of the Local Chapter 13 Plan Form has never been intended to be used to avoid or otherwise determine the validity, priority, or extent of liens that the Federal Rules of Bankruptcy Procedure require be sought by adversary proceeding. See, e.g., Fed. R. Bankr. P. 7001(2). The added language under Part 9.B. of the Local Chapter 13 Plan Form also makes clear that the plan provisions seeking to avoid a lien or obtain other relief for which an adversary proceeding is required will not be effective notwithstanding the entry of an order confirming the plan.
Practitioners may begin using the new form immediately. Use of the new form will be mandatory beginning April 20, 2023, pursuant to the Second Supplemental Standing Order Regarding Mandatory Use of Local Chapter 13 Plan Form.
Local Chapter 13 Model Plan Form (effective April 20, 2023)
Second Supplemental Standing Order Regarding Mandatory Use of Local Chapter 13 Plan Form