Practice tip: Cash Collateral Issues in Chapter 13 – if you believe that your client’s rental property may be subject to a note that give the secured creditor an interest in the rents generated by the property (cash collateral), you may wish to seek a stipulation for use of the rent as soon as the case is filed. If you can’t get a stipulation, file a motion with the court. Normally, this is a chapter 11 issue, but it has been appearing in chapter 13 matters on a regular basis.
Practice tip: All of the chapter 13 trustees are now sending out Notices of Final Cure Payments pursuant to Rule 3002.1 sections f,g,h and i. The secured creditor for the primary residence has a mandatory duty to respond to these Notices. Please review their responses when you receive them and file a motion if your client disagrees with the secured creditor’s response.
Aki Koyama
Staff Attorney to Kathy Dockery, Chapter 13 Trustee
There is a Chapter 11 form for cash collateral (for real property) 2081-1.1. I assume courts would allow debtors to use this form in Chapter 13. We have a simple motion we drafted for cash collateral for our 11s and would be happy to share it with anyone.
Also another “Chapter 11” issue which has arisen in at least one of our 13s is where the debtor has a lease on non-residential real property. It is important to assume the lease within 120-days of the petition (absent extension) or the debtor must vacate the property immediately per 365(d).