Local Rule RULE 1017-1: Dismissal or Conversion.

RULE 1017-1. Dismissal or Conversion.

(a) Motions and Notices to Dismiss or Convert Filed by Debtor.

(1) Motion by Debtor for Conversion from Chapter 7 or 11. A debtor seeking conversion under 11 U.S.C. § 706(a), if the case has not been previously converted from another chapter, shall file a motion for conversion to the desired chapter with a notice pursuant to Mont. LBR 9013-1(f)

A debtor seeking conversion under 11 U.S.C. § 1112(a) or (d) shall file a motion for conversion to the desired chapter without a notice pursuant to Mont. LBR 9013-1(f). Such a motion will be granted without a hearing.

(2) Motion by Debtor for Dismissal from Chapter 7 With Notice. A debtor seeking dismissal under 11 U.S.C. § 707(a) shall file a motion for dismissal, setting forth alleged facts showing no plain legal prejudice to creditors, with the notice required under Mont. LBR 9013-1(f).

(3) Motion by Debtor for Dismissal from Chapter 12 With Notice. A debtor seeking dismissal under 11 U.S.C. § 1208(b) shall file a motion for dismissal with a notice pursuant to Mont. LBR 9013-1(f).

(4) Notice of Conversion from Chapter 12 or 13 to Chapter 7. A debtor seeking a conversion under 11 U.S.C. §§ 1208(a) or 1307(a) to a case under Chapter 7 shall file a notice of conversion in compliance with Mont. LBF 10. No motion or court order is required. The filing date of the notice becomes the date of conversion.

(b) Motion to Dismiss or Convert Filed by Trustee or Other Party in Interest. The trustee or other party in interest may file a motion to dismiss or convert a case to a case under another chapter in accordance with Fed. R. Bankr. P. 1017, by using Mont. LBF 27, with service of the motion on debtor, debtor's attorney, and trustee. The motion shall include a legal and factual basis for the motion and a notice pursuant to Mont. LBR 9013-1(e).

(c) Dismissal of Related Title 11 Proceedings and Matters. Whenever a case filed under Title 11 is dismissed, any related adversary proceeding, contested matter, or any other pending matter shall likewise be dismissed without prejudice and further order of the Court unless the Court orders otherwise. Cases with pending appeals may be dismissed, but the dismissal of the case shall not be deemed to deprive any appellate court of its jurisdiction. Dismissal shall not be deemed to deprive the Bankruptcy Court of the authority to rule on the reasonableness of the professional fees and costs charged by debtor's attorney as provided for in Mont. LBR 2016-1(d).

(d) Trustee's Professional Fees. When a Chapter 7 case is converted to another chapter, Chapter 7 trustee shall file an application for professional fees and costs within 30 days following the conversion. The fee application may be denied if it is not filed within the time allowed.

Related Authority: 11 U.S.C. §§ 348, 349, 706, 707, 930, 1112, 1208, and 1307 Fed. R. Bankr. P. 1017 and 1019 Comment: A motion to dismiss or convert shall be served pursuant to Fed. R. Bankr. P. 2002. Unless the moving party expressly consents to a continuance for a specific period of time or compelling circumstances prevent the Court from meeting the time limits established by 11 U.S.C. § 1112(b)(3), the Court must commence the hearing on a motion to dismiss or convert under 11 U.S.C. § 1112(b) not later than 30 days after the filing of the motion and must decide the motion not later than 15 days after the commencement of the hearing.