**IN THE UNITED STATES BANKRUPTCY COURT**

**FOR THE SOUTHERN DISTRICT OF TEXAS**

**HOUSTON DIVISION**

**In re: §**

**Chapter 13 Trustee Procedures for §**

**Administration of Home Mortgage §**

**Payments §**

**Chapter 13 Trustee Procedures for**

**Administration of Home Mortgage Payments**

**Adopted by the Court on September 29, 2005**

**As Revised on May 18, 2006**

The debtor's plan payments to the chapter 13 trustee shall include the
amount due on the debtor's regular monthly mortgage installments for a
claim secured by a security interest in real property that is the
debtor's principal residence pursuant to the terms of 11 U.S.C. §
1322(b)(5)[^1] ("the ongoing mortgage") unless there is no default on
the mortgage as of the petition date, the date of plan confirmation and
the date of the filing of a plan modification. The following
requirements will apply to all cases in which the Chapter 13 Plan deals
with an arrearage:

1\. Not later than 3 business days following the date a case is filed,
the debtor shall provide the trustee with the following information
concerning all claims to which these procedures apply:

\(a\) The complete name and payment address of the creditor.

\(b\) The account number assigned to the claim.

\(c\) The exact amount of the contractual installment payment and the
date each payment is due.

\(d\) A telephone number for the creditor.

\(e\) A copy of the current payment coupon.

The debtor may satisfy this obligation (i) in a manner acceptable to the
chapter 13 trustee; or (ii) by filing a notice in the form set forth on
the Court's web site attaching a document containing the above
referenced information.

2\. The debtor shall make payments to the trustee with the payments to
be received by the trustee by a date that complies with the provisions
of the security agreement concerning payment due dates. The trustee is
not required to disburse funds to a claimant unless the trustee is
satisfied that the payment received by the trustee from the debtor will
not be dishonored by the financial institution upon which it is drawn.

3\. Subject to these procedures, the trustee is authorized to disburse
funds in payment of all regular contractual installment payments and
other charges arising pursuant to the claim of a creditor that become
due following the commencement of a case pursuant to the terms of the
note and security agreement applicable to the claim. Disbursements
should commence as soon as is practicable. If the trustee has available
funds, the initial disbursement should precede the hearing on plan
confirmation. Pre-confirmation payments received by the chapter 13
trustee shall be applied as follows:

\(a\) to an adequate protection reserve in accordance with any adequate
protection orders issued by the Court.

\(b\) to a reserve for payment of priority claims (including allowed
attorneys fees), calculated as follows:

\(i\) The amount of the Debtor's proposed monthly payment; minus,

\(ii\) The amount of any adequate protection reserve; minus,

\(iii\) The amount of the Debtor's monthly mortgage payment.

\(c\) to the ongoing mortgage payment.

4\. If the holder of a claim proposes to adjust the amount of the
regular contractual installment payment due to a change in the interest
rate, or for an escrow for payment of insurance and taxes, the claimant
shall give written notice of the "adjusted amount" to the debtor,
debtor's counsel, and the trustee. The debtor shall promptly provide the
trustee with a copy of any notice of an "adjusted amount" that the
debtor receives from a creditor while the case is pending.

5\. No post petition adjustment to the contractual installment payments
due on a claim dealt with pursuant to § 1322(b)(5) shall be valid unless
authorized by the agreement upon which the claim is based, and unless
notice of the proposed adjustment is served on the debtor, debtor's
attorney, and the chapter 13 trustee, not later than 45 days prior to
the date the adjusted amount is due.

6\. Upon receipt of a notice pursuant to the preceding paragraph, the
trustee shall be authorized to either object to the claim, or disburse
the adjusted amount, without seeking a formal modification of the plan.

7\. Upon receipt of a notice of an "adjusted amount", the trustee shall
file with the Court, a notice of disbursement of the "adjusted amount",
and shall serve the notice on the debtor and the debtor's attorney. The
debtor shall have 20 days from the date of service of such notice to
file an appropriate motion seeking Court review of the proposed
adjustment. Disbursements of the adjusted amount are subject to
refund/disgorgement upon ruling by the Court.

8\. If the disbursement of an "adjusted amount" causes the plan to fail
to meet the minimum standards for confirmation described in § 1325, then
the trustee or the debtor may seek a modification of the plan pursuant
to § 1329, or file a motion to dismiss or convert the case.

9\. Prior to the completion of the case, a party in interest may seek a
determination by the Court concerning the sufficiency of the payments
made to a creditor pursuant to these provisions. Unless the Court
determines otherwise, pursuant to an appropriate motion or other
pleading, an order granting the debtor a discharge in this case shall
serve as a conclusive determination that all defaults with respect to
any claim dealt with in the plan pursuant to these provisions are
"cured," within the meaning of § 1322(b)(5), as of the date of the final
payment to the claimant by the trustee.

10\. The chapter 13 trustee shall periodically, at least annually, file
a report which sets forth the date and amount of each payment made by
the trustee to a creditor whose claim is subject to these provisions.
The report shall specify the period covered by the report, and identify
the months for which each contractual payment is applied according to
the records of the trustee. The report shall be served on the debtor,
debtor's counsel and each creditor holding a claim described on the
report. If a creditor seeks to make a claim against the estate or the
debtor that arose within the period covered by the report (i.e. a claim
for late charges or attorneys fees or any other charge authorized by the
agreement with the debtor), such claim will be barred unless it is (i)
filed within 60 days after receipt of this report; and (ii) is allowed
pursuant to the terms of the confirmed plan.

11\. Amounts received by the holder of the ongoing mortgage prior to
confirmation must be applied by the holder to the next payment due
without penalty under the terms of the note; or the holder must notify
the trustee in writing that it waives all late charges that accrue after
the order for relief in this case. Amounts received by the holder of the
ongoing mortgage after confirmation must be applied in accordance with
the plan.

12\. Motions for relief from the automatic stay which are required to
include a post-petition payment history may utilize a printout of the
information on the chapter 13 trustee's website for the post-petition
portion of the payment history.

13\. These procedures may be varied in a particular case only by order
of the Court.

[^1]: Hereafter, all statutory references are to sections of Title 11,
    United States Code.