Local Rule LBR 2083-2: Chapter 13 – Motions to Approve Sale of Real Property
Bankr. D. Haw. — General rule
LBR 2083-2. Chapter 13 – Motions to Approve Sale of Real Property
(a) Motion. A chapter 13 debtor may request an order approving a sale of real property by filing a motion that substantially conforms to the local form (Chapter 13 Debtor's Motion to Approve Sale of Real Property). The motion must attach the following:
(1) Purchase contract and related documents (counter-offer, addenda, etc.);
(2) Preliminary title report; and
(3) Estimated seller's settlement statement.
(b) Service. The motion must be served on the trustee, all holders of a lien against the subject property, and any other party with an interest in the property being sold.
(c) Notice of Hearing. Notice of a hearing on the motion shall be given to the trustee, lienholders, and other creditors and parties in interest not less than 28 days in advance of the hearing. The notice must substantially conform to the local form (Notice of Hearing on Chapter 13 Debtor's Motion to Approve Sale of Real Property) and summarize the sale details including disposition of the sale proceeds.
(d) Deadline to Object. Any objection to the sale shall be timely if filed not less than 7 days before the hearing. Absent a timely objection, the debtor may file the local form (Declaration and Request for Entry of an Order).
(e) Order
(1) Form Order. If the motion is granted or if there is no timely objection, the movant shall upload in the court's eOrders module a proposed order that substantially conforms to the local form (Order Granting Chapter 13 Debtor's Motion to Approve Sale of Real Property).
(2) Effect of Order Approving Sale. Upon entry of an order approving the sale, the trustee shall suspend plan distributions ("suspended distributions") to any lienholder identified in the order whose lien is being paid in full until the earlier of (i) 90 days, or a later date with the trustee's consent, after entry of the order or (ii) the filing of a notice of cancellation of the sale.
(f) Closing of Sale.
(1) Report of Sale. Within 14 days after the closing of the sale, the debtor must file a report of sale that attaches the final settlement statement. If the report of sale indicates that a lienholder's claim has been paid in full, the trustee shall make no further distributions on that claim whether or not the lienholder files a notice of satisfaction of claim. Any suspended distributions will be paid on other claims.
(2) Cancellation. If the sale does not close, the debtor must promptly file a notice that substantially conforms to the local form (Notice of Cancellation of Sale). Upon the filing of a notice of cancellation, the trustee shall resume plan distributions on claims by lienholders, including suspended distributions that accrued during the suspension period.