This article is a follow up to the series of articles that I had previously written on the Jones v. Wells Fargo Case.
On January 11, 2008 Judge Elizabeth W. Magner entered Administrative Order 2008-1 in the Wells Fargo Case. The purpose of the Administrative Order was to implement the accounting procedures ordered by Judge Magner in the Wells Fargo opinion.
The order requires Wells Fargo to deliver a “Statement of Post-Petition Charges” to every Chapter 13 debtor with a case in the Eastern District of Louisiana. The order also provides a suggested form for the statement. The statement must also be sent to the attorney for the debtor and the Chapter 13 trustee.
The purpose of the statement is to provide an itemized list of all new charges and/or fees that Wells Fargo believes to have been incurred since the debtor’s Chapter 13 petition was filed through the end of each calendar year.
The statement must be issued between January 1 and February 28 of the year following the petition filing date. Objections to the statement must be filed with the Court on or before March 31.
The statement is then to be delivered on an annual basis throughout the life of the Chapter 13 Plan.
Failure by Wells Fargo to deliver a statement will act as an admission by it and any later holders of the debt that no fees or charges have been incurred.
Failure of the debtor or trustee to timely object to the statement will result in the Court approving the fees or charges.
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