USFN Report: Wisconsin Ruling Highlights Importance of Complying with Bankruptcy Rule 3002.1

As published in the 2025 USFN Spring Report

BY CHRISTOPHER C. DROUT, ESQ. | GRAY & ASSOCIATES, LLP  |  USFN MEMBER (WI)

The Eastern District Bankruptcy Court of Wisconsin recently issued a decision in In re Himes, No. 19-20183-gmh, 2025 WL 720244 (Bankr. E.D. Wis. Mar. 3, 2025) that provides a costly reminder to creditors as to the importance of complying with the specific requirements of Federal Rule of Bankruptcy Procedure 3002.1.

The debtors’ confirmed plan required the debtors to cure the prepetition mortgage arrears through the plan and to maintain postpetition mortgage payments directly to the creditor with respect to their principal residence.¹ At the completion of the plan, the trustee filed a notice of final cure with respect to the claim secured by the debtors’ principal residence. The secured creditor’s response to the trustee’s notice of final cure acknowledged that the debtors had fully cured their prepetition default, but stated they were not current on postpetition payments, citing a total balance of $2,695.17 in ongoing payments due while indicating no outstanding fees, charges, expenses, escrow and costs.² The creditor’s response provided a payment history, but did not provide a detailed itemization of how the amount was calculated.

The debtors filed a motion to determine final cure and payment pursuant to Rule 3002.1(h) alleging they were current on postpetition mortgage payments and requested that the court award them attorney’s fees and costs because the creditor’s response failed to comply with the requirements of Rule 3002.1(g).³

The creditor subsequently amended its response, asserting that the debtors were current on postpetition mortgage payments through December 2024, but still owed $1,275.00 in postpetition fees and charges.⁴

The court examined Rule 3002.1(i), which allows the court to award reasonable expenses and attorney’s fees caused by the creditor’s failure to provide any information required by Rule 3002.1(g).⁵ Rule 3002.1(g) requires the creditor to file a statement that itemizes the postpetition amounts that it alleges unpaid as of the date of the statement. The court determined that the creditor’s original response did not provide accurate information and failed to itemize the postpetition amounts due, depriving the debtors of the necessary information to reconcile their mortgage balance.⁶ As a result, the court awarded the debtors with attorney’s fees of $1,650.00 for the creditor’s failure to provide the required and accurate information under Rule 3002.1(g).⁷ The court further prohibited the creditor from charging the debtors with bankruptcy related fees and expenses relating to the response to final cure.⁸

This case emphasizes the importance of meticulous compliance with Rule 3002.1. Creditors must ensure that a response to the trustee’s notice of final cure is accurate and sufficiently detailed to avoid unnecessary litigation and court-imposed sanctions. By taking proactive measures to ensure accuracy and transparency, creditors can protect themselves from costly errors and maintain compliance with the requirements of Rule 3002.1.

¹ In re Himes, No. 19-20183-gmh, 2025 WL 720244 at ^∗1 (Bankr. E.D. Wis. Mar. 3, 2025)

² Id.

³ Id.

⁴ Id.

⁵ Id. at ^∗3

⁶ Id. at ^∗4

⁷ Id. at ^∗6

⁸ Id.