Local Rule LBR 2083-1: Chapter 13 – General

LBR 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). 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). Unless the court directs otherwise, a hearing is not required.

(c) Debtor's Motion to Approve Sale of Personal Property. A chapter 13 debtor may request an order approving a sale of personal property by filing a motion in accordance with LBR 9013-1(c) that identifies the subject property, purchase price, buyer(s), any security interests, and substantive terms of the sale. For property of the estate, notice shall be given to all parties entitled to notice under Bankruptcy Rule 2002 (Bankruptcy Rule 2002(h) applies). For property that is not property of the estate, the court may consider the motion without notice and a hearing if approved by the trustee.

(d) Debtor's Motion to Obtain Credit or Incur Debt. A chapter 13 debtor may seek authority to incur new debt or modify existing debt by submitting a stipulation with the trustee's approval that substantially conforms to the local form (Stipulated Order Authorizing Debtor to Incur Debt). Otherwise, court approval may be sought in accordance with LBR 9013-1.

(e) Trustee's Motions to Dismiss.

(1) Notice of Motion. A motion to dismiss a case under Bankruptcy Rule 1307(c)-(e) requires a 28-day notice of a hearing to the debtor.

(2) Requirement to Meet and Confer. If the debtor is represented by counsel, the debtor's attorney shall meet and confer remotely or in person with the trustee to resolve the issue prompting the motion to dismiss. Failure of the debtor's attorney to make a good faith effort to meet and confer at least 7 days before the hearing may be cause for sanctions. If the trustee files a declaration that the debtor's attorney failed to meet and confer, the court may reduce by $250 any allowed attorney fees.

(3) Conditional Relief. The ruling on a trustee's motion to dismiss may provide for a delay in entry of a dismissal order to allow the debtor to satisfy the deficiency for which the motion was filed, file a motion to modify the plan, or convert the case to another chapter. If the debtor is provided a deadline to file a motion for some other relief, such as plan modification, and the motion is timely filed and granted, the trustee's motion to dismiss will be deemed withdrawn. If the debtor's motion is denied, the clerk may enter an order granting the trustee's motion to dismiss without further notice or hearing.

(f) Operation of a Business.

(1) Requirement for Reports. If the debtor is self-employed or operates a business, the trustee may require submission of a report that includes: (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.

(2) 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.