(a) De Minimis Non-Mortgage Consumer Debt. The debtor may incur non-mortgage consumer debt of less than $1,000 in the aggregate in any calendar year without seeking approval of the trustee or the court.

(b) Non-Mortgage Consumer Debt with Approval Only by the Trustee. The debtor may incur non-mortgage consumer debt with the trustee’s approval but without court approval under the following procedure.

(1) Application to Incur Debt. If the debtor seeks to incur non-mortgage consumer debt that will not affect payments under the plan or the dividend to unsecured creditors, the debtor may submit to the trustee a written application for approval of such new debt. The debtor shall not file the application in the bankruptcy case.

(2) Contents of the Application. The application shall include: (i) proposed amended Schedules I and J in support of feasibility of the request, or a certified statement that either no changes in income/expenses have occurred since plan confirmation or Schedules I and J were filed within the previous 12 months; (ii) a description of the item to be purchased; (iii) if applicable, a description of the collateral securing the new debt; (iv) debtor’s reasons for needing to incur the new debt; (v) the principal balance, interest rate, monthly payments, maturity date, and any other relevant financing terms for the new debt; and (vi) the debtor’s certification that the debt will not affect plan feasibility, payments under the plan, or the dividend to unsecured creditors.

(3) Trustee Approval. The trustee will give written notice to the debtor whether the application is approved or denied. If the trustee approves the application, within ten (10) days thereafter the debtor will file in the bankruptcy case a notice of the trustee’s approval. The notice must disclose the item purchased, the amount of the new debt, the collateral securing the debt (if applicable), the amount of the monthly payments, and the maturity date.

(4) Trustee Denial or Untimely Review. If the trustee denies the application or does not notify the debtor of the trustee’s decision within a reasonable time, debtor may file a motion to incur the proposed debt and give the required notice.
(c) Limitation on Subsequent Plan Modifications. The court will not approve a motion to modify a plan to reduce the plan payment or the dividend to unsecured creditors if such modification is necessitated in whole or in part by the new debt incurred and approved only by the trustee under the application process in this rule.

(c) Limitation on Subsequent Plan Modifications. The court will not approve a motion to modify a plan to reduce the plan payment or the dividend to unsecured creditors if such modification is necessitated in whole or in part by the new debt incurred and approved only by the trustee under the application process in this rule.