Local Rule 2083-1: CHAPTER 13 - GENERAL

BANKRUPTCY LOCAL RULE 2083-1 CHAPTER 13 - GENERAL

(a) Debtor's Notice of Conversion to Chapter 7. A debtor may request an order converting a chapter 13 case, not previously converted from another chapter, to one under chapter 7 by filing and serving on the trustee and United States Trustee a notice substantially conforming to the local form (Debtor's Notice of Conversion of Case to Chapter 7 [GUB 2083-1a]). Unless the court directs otherwise, a hearing is not required.

(b) Debtor's Motion to Dismiss Case. A debtor may request an order dismissing a chapter 13 case, not previously converted from another chapter, by filing and serving on the trustee and United States Trustee a motion substantially conforming to the local form (Debtor's Motion to Dismiss Chapter 13 Case [GUB 2083-1b]). Unless the court directs otherwise, a hearing is not required.

(c) Debtor's Motion to Approve Sale of Property. A chapter 13 debtor may request an order approving a sale of property by filing and serving on the trustee, the United States Trustee, and all parties claiming an interest in the subject property, a motion and notice substantially conforming to the local form (Debtor's Motion to Approve Sale in Chapter 13 Case [GUB 2083-1c]) in accordance with BKLR 9013-1(e). The motion must include a report as to the status of title and liens for the subject property. The motion may include a request for approval of any compensation to be paid to the debtor's attorney for services related to the motion and payment of a commission or other fees to a sales agent, auctioneer, or other professional for services performed in connection with the sale, if (i) the amount requested does not exceed the applicable amount under the Chapter 13 Attorney Fee Guidelines, and (ii) the compensation will be paid directly from the proceeds of the sale and will not diminish the amount distributable to unsecured creditors.

(d) Debtor's Motion to Obtain Credit or Incur Debt.

(1) Form of Motion. A chapter 13 debtor may request an order authorizing the debtor to obtain credit or incur debt by filing a motion substantially conforming to the local form (Debtor's Motion to Incur Debt [GUB 2083-1d]). The motion may include a request for approval of any compensation to be paid to the debtor's attorney for services related to the motion if (i) the amount requested does not exceed the applicable amount under the Chapter 13 Attorney Fee Guidelines, and (ii) the compensation will be paid directly from the proceeds of the loan and will not diminish the amount distributable to unsecured creditors.

(2) Notice. The court may consider the request without notice to creditors if:

(A) the collateral for the new debt is property that vested in the debtor upon plan confirmation or otherwise is not property of the estate;

(B) the loan proceeds will be used to satisfy all remaining payments to the trustee due under the plan;

(C) where a separate application for compensation will be made, any compensation for services of the debtor's attorney related to the motion will be paid into a client trust account, pending further court approval; and

(D) the trustee's approval is evidenced by the trustee's signature on the motion or proposed order.

(3) Plan Modification. A debtor is not required to file a separate motion to modify confirmed plan if:

(A) the sale or loan proceeds will be used to complete all remaining payments due under the confirmed plan; and

(B) plan modification is limited to the acceleration of such payments.

(e) Trustee's Motions to Dismiss.

(1) Motion to Dismiss for Lack of Feasibility. If the trustee determines from the proofs of claims actually filed that the confirmed plan is not feasible, i.e. there will be insufficient funds to pay in full all administrative expenses, secured claims, priority claims, and any claims placed in a special class for full payment, the trustee may file and serve on the debtor a motion to dismiss for lack of feasibility substantially conforming to the local form (Trustee's Motion to Dismiss for Lack of Feasibility; Notice of Deadline [GUB 2083-1e1]). Failure of the debtor to file, within 28 days after the date of filing of the motion, an objection to a claim, which, if sustained, would ensure feasibility, or a motion to modify the confirmed plan, may result in the court dismissing the case without further notice or hearing.

(2) Motion to Dismiss for Failure to Make Plan Payment or Other Cause. Unless these rules provide for a specific alternate procedure, the trustee may request an order dismissing a chapter 13 case by filing and serving on the debtor a motion and notice substantially conforming to the local form (Trustee's Motion to Dismiss Case; Notice of Hearing; Certificate of Service [GUB 2083-1e2]). The motion must be filed and served no later than 21 days before the hearing date.

(f) Operation of Business.

(1) Requirement for Reports. Not later than 7 days before the meeting of creditors, the debtor must submit business reports to the trustee if requested by the trustee or if at least 2 of the following conditions exist:

(A) the business employs 3 or more individuals;

(B) the business earns monthly gross receipts exceeding $10,000;

(C) the business produces net receipts comprising 50% or more of the debtor's income reported in schedule I.

(2) Content of Reports. The business reports required under this rule must include:

(A) a projection of average monthly income and expenses;

(B) evidence of appropriate business insurance;

(C) inventory of goods as well as a list of furniture and equipment as of the date of filing of the petition;

(D) monthly income and expense statements for at least 6 months preceding the date of filing of the petition, including a statement regarding incurred and unpaid expenses, signed by the debtor under penalty of perjury; and

(E) any additional financial information specified by the trustee.

(3) Trustee's Duties. If business reports are not required under this rule, the trustee is not required to perform any additional duties under § 1302(c) with respect to the debtor's operation of a business.

BKLR 2083-1 Related Local Forms: • Debtor's Notice of Conversion of Case to Chapter 7 [GUB 2083-1a] • Debtor's Motion to Dismiss Chapter 13 Case [GUB 2083-1b]). • Debtor's Motion to Approve Sale in Chapter 13 Case [GUB 2083-1c] • Debtor's Motion to Incur Debt [GUB 2083-1d] • Trustee's Motion to Dismiss for Lack of Feasibility; Notice of Deadline [GUB 2083-1e1] • Trustee's Motion to Dismiss Case; Notice of Hearing; Certificate of Service [GUB 2083-1e2]