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South Carolina: Amended Chamber Guidelines for Senior BK Judge

Posted By USFN, Tuesday, September 12, 2017
Updated: Monday, August 28, 2017

September 12, 2017


by Louise “Ceasie” Johnson, Tasha Thompson, Ronald Scott, and Reginald Corley

Scott & Corley, P.A. – USFN Member (South Carolina)

Over the past year, there have been many changes to bankruptcy practices and procedures implemented by the U.S. Bankruptcy Court for the District of South Carolina. Most recently, senior bankruptcy judge, the Honorable John Waites, amended his chamber guidelines effective April 10, 2017 (Amended Guidelines). Although the Amended Guidelines impose new requirements for various types of bankruptcy matters, they have the greatest impact on mortgage creditors’ established practices regarding 11 U.S.C. § 362 settlement orders and loss mitigation and mortgage modification (LM/MM). [Click here to access Judge Waites’ Local Forms webpage.]

Generally, the Amended Guidelines provide for procedural and substantive changes with respect to the following: (1) Chapter 13 attorneys’ fees; (2) LM/MM; (3) numerous new, standard 11 U.S.C. § 362 settlement orders; (4) procedures for valuation mediations; and (5) the deadline for filing joint statements of dispute in Chapter 13 cases.

I. Amended Guidelines regarding timelines for LM/MM through the DMM Portal (Portal) are as follows, with Creditor’s/Servicer’s (Creditor) requirements in bold:

a. Immediately upon entry of the LM/MM Order, Debtor’s Counsel must register on the Portal;
b. Within 7 days of Debtor’s Counsel’s registration on the Portal, Creditor must sign up for the Portal, ensure that all necessary forms are uploaded on the Portal, and assign counsel to case in Portal*;
c. On or before Day 14, Debtor’s Counsel must submit loss mitigation application and any additional, necessary forms through the Portal and pay the Portal fee;
d. On or before Day 21, Creditor must acknowledge receipt of application and documents in Portal, provide Creditor’s representative’s contact information in Portal, and notify Debtor’s Counsel of any missing documentation through the Portal;
e. Initial Mediation Session must be held before the expiration of Day 30; and
f. By Day 90, Creditor must report its decision on the loss mitigation review to the Court.

*At the time that Creditor assigns counsel to a case in the Portal, it should send legal referral or notification of the Portal matter to its local bankruptcy counsel and approve the standard legal fee for representing the Creditor throughout the LM/MM process in the Portal.

II. Amended Guidelines regarding 11 U.S.C. § 362 Settlement Orders (Settlement Orders) are as follows:

a. Judge Waites now has seven different, fact-driven, and fact-specific, form Settlement Orders; and
b. Standard Cure Periods now are required for Settlement Orders, pursuant to the new uniform standards set forth in the following chart:


Number of Missed Post-Petition Payments 

Length of Cure Period

 0-6 Months  12-Month Cure
 7-12 Months  24-Month Cure

 More than 12 Months 

 To be determined at a hearing



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