Legal Update: Amendment to Local Bankruptcy Rule 3002.1-1

Under a recent amendment to the Local Bankruptcy Rules for the District of Maine, some claims arising from interests home-equity lines of credit will be exempt from the requirement to file Notices of Mortgage Payment Change in Chapter 13 cases.

Effective April 23, 2021, creditors will not be required to file the Rule 3002.1(b)(1) Notice of a change in the periodic payment on a HELOC, other than a change resulting from an escrow adjustment, if:

  1. The creditor otherwise provides notice of the change directly to the debtor, in compliance with applicable law; and
  2. The debtor will make current installment payments under the terms of a Chapter 13 plan.

This change removes a constant issue with HELOCs that automatically adjust multiple times per year and will result in a noticeable savings to both creditors and debtors.

If you have any questions, or would like more information, please contact Eaton Peabody’s Bankruptcy & Creditor’s Rights Practice Group Chair, Shawn Doil at