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Local Rules

4001 Relief from Automatic Stay; Cash Collateral and Financing Orders [SO 8/4/83]

4001-1.  A.  Applicability of Local Bankruptcy Rule 9013. Except as otherwise provided herein, Local Bankruptcy Rule 9013 applies to motions for relief from stay, use of cash collateral, adequate protection, and financing orders.

B.  MOTIONS FOR RELIEF FROM STAY.  The thirty (30) days within which the Court must preliminarily rule on such a motion under 11U.S.C. § 362(e) shall be computed from the date on which a motion is served on opposing parties and filed with the Court. In addition to those parties listed in Rule 4001 Fed.R.Bankr.P., notice shall be given to the debtor, attorney for the debtor, trustee or examiner, the United States Trustee, to any persons requesting special notice under Rule 2002(i) Fed.R.Bankr.P., and any chapter 11 creditors’ committee or other official committee duly appointed in a chapter 11 case.
 

4001-2.  [RESERVED]    [Former Rules 18 & 24]

CASH COLLATERAL OR ADEQUATE PROTECTION AGREEMENTS    [SO 10/30/85]

All requests for orders approving adequate protection or cash collateral agreements or stipulations shall be sought by written motion and notice of motion, and shall be the subject of a hearing. The party seeking the order shall prepare and serve the motion and notice of motion.  Notice shall be given to the parties to the agreement, all parties having any other interest in the collateral, and the creditors’ committee, if any, and the United States Trustee. If there is no creditors’ committee,   and

notice shall be given to the twenty largest creditors. At the hearing, after inquiry into the content and consequences of the agreement, the Court may direct a further hearing on notice to all creditors or all parties-in-interest. The Court will entertain without a hearing, requests for an order approving a cash collateral agreement or a stipulation which provides for nothing more than a replacement lien on post-petition assets, in an amount equal to the amount of cash collateral used. a cash collateral agreement or a stipulation which provides for nothing more than a on post-petition assets, in an amount equal to the amount of cash collateral used.

4008 Discharge and Reaffirmation Hearing [GO 11/21/86]

4008-1.  Reaffirmation agreements submitted must be accompanied by Form B240 (or a form which substantially conforms to Form B240) and must be completed and signed. Debtors will no longer be required to attend a discharge hearing, except as provided below. Discharge Hearing Calendars will be conducted on a regular basis throughout the district, at which debtors may present themselves for a full explanation of the meaning of discharge and of reaffirmation. Times and places of such calendars are available from the Clerk.

A. Pro Se Debtors.  A discharge hearing must be attended by a pro se debtor filing a reaffirmation agreement.  The Clerk will issue an informational letter to the debtor and a form to request a § 524(d) hearing.

B. Reaffirmation Agreement Accompanied by Attorney’s Declaration.  The debtor shall not be required to attend a discharge hearing if the debtor is represented by an attorney who attaches a declaration prepared pursuant to § 524(c)(3).

C. Reaffirmation Agreement Not Accompanied by Attorney’s Declaration.   A discharge hearing must be attended by the debtor if a reaffirmation agreement is not accompanied by a completed Attorney’s Declaration. The Clerk will issue an information letter to the debtor and a form to request a § 524(d) hearing.

5073 Photography, Recording Devices & Broadcasting

5073-1. CAMERAS AND RECORDING DEVICES

A. The taking of photographs, or making of oral or video tape recordings, or radio or television broadcasting in a courtroom during the progress of or in connection with judicial proceedings, whether or not Court is actually in session, is prohibited. None of the foregoing activities is allowed in the jury rooms, the offices of the Judges or Court reporters, or in any room hallway or corridor of the floor of the building in which the courtrooms are located, except with the express consent of the Court.

B. The Court may except ceremonial and investitive proceedings from this prohibition.

C. Court reporters are not prohibited by this rule from making sound recordings for the sole purpose of discharging their official duties. No recording made for that purpose shall be used for any other purpose by any person. Likewise, personnel of the Court are not prohibited by Section A of this rule from making sound recordings in the course of their work.

[Former Rule 9]

5080 Fees - General

5080-1.  PAYMENT OF FEES  

The Bankruptcy Clerk, unless otherwise ordered by the Court, shall not be required to render any service for which a fee is prescribed by statute or by the Judicial Conference of the United States unless the fee for such service is paid in advance and as specified in LBR Rule 5081.

[Former Rule 22]

5081 Fees - Form of Payment

5081-1.  FORM OF PAYMENTS  

Fees must be tendered in cash or by certified check, bank draft, or money order.  The Clerk may specify other forms of payment.

[Former Rule 22]

6004 Use, Sale or Lease of Property

6004-1.  STATEMENT, FORM, AND NOTICE  [SO 8/9/83]

A. Except as to sales in the ordinary course of operating a business, the trustee or debtor in possession shall file with the Bankruptcy Court a statement identifying any estate property proposed to be sold and the date and manner of such sale.  The statement shall contain sufficient detail to enable creditors to make an informed judgment as to the wisdom of the proposed disposition.   At a minimum, the statement shall contain a description of the property. A statement of sale shall contain a description of the manner and terms of sale, the name of the buyer and purchase price, if known. If the case is a chapter 11 case, a statement as to whether the sale is all or substantially all of the debtor’s assets, and the effect the sale will have upon the debtor’s ability to reorganize.

B. Except as provided in Rule 6004(c) Fed.R.Bankr.P., and subdivision C hereof, notice of the filing of the statement and a summary thereof shall be sent to all creditors. The notice also shall advise creditors that they may obtain a hearing on the proposed disposition by filing a written demand for a hearing with the Court within twenty (20) days of the notice date.

C. Where the statement discloses a sale of all or substantially all of the assets, the Clerk shall set the matter for hearing and notice shall be sent to all creditors.

[Former  Rule 25 and Rule 26 (RESERVED)]

6007 Abandonment

6007-1.  STATEMENT, FORM AND NOTICE  

A. The trustee or debtor in possession shall file with the Bankruptcy Court a statement identifying any estate property proposed to be abandoned and the date and manner of such abandonment. That statement shall contain sufficient detail to enable creditors to make an informed judgment as to the wisdom of the proposed disposition.  At a minimum, the statement shall contain a description of the property.

B. Notice of the filing of the abandonment statement and a summary thereof shall be sent to all creditors.  The notice also shall advise creditors that they may obtain a hearing on the proposed disposition by filing a written demand for a hearing with the Court within twenty (20) days of the notice date.

[Former Rule 25; parts of A & B]

6070 Tax Returns & Tax Refunds

6070-1.  A.  In General. The failure of a debtor in an asset case under any chapter of Title 11 of the United States Code to file any required tax return promptly after filing the petition or after conversion may constitute “cause” for dismissal or conversion of the case upon a request by a party in interest and after hearing on notice.

B.  As to “Estimated” Tax Claims.  Concurrent with the debtor’s duty to file tax returns is the duty to assure that improper distributions are not made upon “estimated” tax claims resulting from the Debtor’s failure to file returns.

Overpayment of taxes by allowance of unduly-high “estimated” tax claims may occur to the prejudice of other unsecured creditors, whose percentage distribution may be reduced for the benefit of the excessive “priority” tax claim.

Underpayment of taxes by allowance of unduly-low “estimated” tax claims leaves the Debtor liable for the deficiency after he or she emerges from bankruptcy. And it may have resulted in a windfall for other creditors.

When the tax claim is an “estimated” claim only because no return was filed, the burden must be placed on the Debtor to take steps to avoid prejudice to other creditors (and the Debtor may wish to take steps to protect himself or herself as well.)

At the least, the Debtor shall within 30 days of service of a copy of an “estimated” tax claim that is “estimated” because of non-filing of returns, object to such claim under Rule 3007 Fed.R.Bankr.P. even if the Debtor does not disagree with the amount.  A copy of the proposed return or other evidence of the amount of the liability shall accompany the objection.   If the Debtor is not served with a copy of the “estimated claim”, then the objection must be filed within 30 days after the closing of the 180 day opportunity for the filing of tax claims under § 502.

At the hearing on the objection the Debtor shall appear and shall be prepared to tender the tax return thereat or to provide evidence to the Court as to a proper “estimate” of the tax claim, whether higher, lower, or the same as that filed by the taxing entity.

The Court will thus “estimate” the claim for the purpose of allowance but will not at that hearing determine the Debtor’s tax liability under § 505 or the applicable tax laws. The duty to file a return and the risk of additional liability remains at all times on the Debtor, and any discharge shall not discharge the unpaid balance of any actual tax liability, interest or penalties. Determination of tax liability under § 505 requires an Adversary Proceeding.

If the objection required by this rule is not made, the case may on motion on notice to the Debtor and counsel be converted or dismissed, as to the Court appears proper.

The taxing entities may assert other remedies, such as objections to confirmation of a plan. If a plan is confirmed “pending” the estimation of the tax claims as above, then confirmation shall be without prejudice to any objections properly arising out of the hearing on the claim, such as (but not limited to) objections based on feasibility, projected disposable income, or lack of good faith.

[Former Rule 42]

7004 Service of Process

7004-1. SERVICE UPON THE UNITED STATES IN CONTESTED MATTERS

A. Rule 9014 Fed.R.Bankr.P. requires that a motion be served “in the manner provided for service of a summons and complaint by Rule 7004 Fed.R.Bankr.P." of those Rules. Rule 7004(a) Fed.R.Bankr.P. [by incorporating Rule 4(d) of the Federal Rules of Civil Procedure and Rule 7004(b)(4), (5)] require:

  1. that the United States be served whenever an officer or agency of the United States is served; and
  2. that service upon the United States is obtained by serving the United States Attorney for the District in which the action is brought, together with mailing a copy of the process to the Attorney General of the United States at Washington, D.C.

[Former Rule 16]

7016 Pre-Trial Procedures

7016-1.  PRE-TRIAL CONFERENCES IN ADVERSARY PROCEEDINGS   

A.  At the pre-trial conference required by Rule 7016 Fed.R.Bankr.P., counsel shall be prepared to report on the following matters:

  1. status of the pleadings and joinder of other parties or actions;
  2. anticipated discovery proceedings and the time required for the completion thereof;
  3. unusual problems of law or fact which may arise;
  4. anticipated motions;
  5. narrowing of the issues and stipulation as to matters which avoid unnecessary proof;
  6. the time when the case will be ready for trial;
  7. such other matters as may aid in disposition of the case.

B.  Upon the completion of the conference, an order will be entered by the Bankruptcy Court setting the time within which all pre-trial motions and discovery are to be completed and imposing such additional requirements as may be appropriate. Thereafter, further discovery shall not be permitted except by leave of the Court for good cause shown.

[Former Rule 27]

7016-2.  AUTHORITY OF CLERK     [SO 5/7/84]

The authority of this Court to set pre-trial conferences in adversary proceedings and other disputed matters is hereby delegated non-exclusively to the Clerk, who shall, in directing litigants to appear thereat, give them notice that such direction is by order of the Court and that the Court may impose sanctions, including a default judgment for failure to appear.

[Former Rule 28]

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