Local Rule 4002-1: DEBTOR'S DUTIES – GENERALLY

RULE 4002-1. DEBTOR'S DUTIES – GENERALLY.

(a) Certificate from Approved Nonprofit Budget and Credit Counseling Agency.

(1) General Requirement. A debtor who is an individual must file with the petition a certificate from an approved nonprofit budget and credit counseling agency evidencing the debtor's completion of the mandatory credit counseling course and compliance with the requirements of § 109(h)(1). See also 11 U.S.C. § 111.

(2) Temporary Waiver. To obtain a temporary waiver of § 109(h)(1), the debtor must attach a separate sheet to the petition explaining (a) the efforts the debtor made to timely obtain briefing about credit counseling, (b) why the debtor was unable to obtain the certificate before filing for bankruptcy, and (c) the exigent circumstances that forced the debtor to file for bankruptcy without the credit counseling certificate. The Court may hold an expedited hearing on three business days' notice to the debtor, debtor's attorney (if any), case trustee, United States Trustee, and any other interested parties that filed a notice of appearance in the case. A debtor's failure to file a certificate from an approved nonprofit budget and credit counseling agency within the additional time allowed by the Court subjects the case to dismissal without further notice or hearing.

(3) Permanent Waiver. If a debtor seeks a permanent waiver of § 109(h)(1), the debtor must file a motion that includes an affidavit setting forth facts in support of the request, and must serve the motion on the case trustee, all creditors, and the United States Trustee. See Local Rule 9013-4(10).

(b) Filing Payment Advice Cover Sheet. See Local Rule 1007-1(d).

(c) Document Production Prior to the First Meeting of Creditors. See also Local Rule 2003-1(b).

(1) If a debtor is unable to file the schedules, statements, and other required documents at least seven days before the date of the first meeting of creditors (see subparagraphs (c)(2)–(4) below), the debtor must notify all creditors of this fact. With the case trustee's consent, the debtor may reschedule the meeting of creditors to the next available date. However, if the debtor is unable to obtain the trustee's consent to reschedule the meeting, the debtor and the debtor's attorney (if any), must appear at the originally scheduled meeting of creditors.

(2) In all chapter 7 cases, to the extent applicable, the debtor must provide the case trustee with the following documents at least seven days before the first scheduled meeting of creditors:

(A) for each residence, condominium, cooperative apartment, mobile home, lot, real property or time-share the debtor owns or listed on the debtor's schedules:

(i) a copy of the deed and all mortgage deeds showing recording information or stock certificates;

(ii) recent evidence of value (e.g., tax bill, grand list value) and copies of all appraisals performed within the last three years; and

(iii) current mortgage statements, including the pay-off figure as of the most recent mortgage statement;

(B) for each motor vehicle, snow machine, all-terrain vehicle, trailer, boat, airplane, piece of equipment or machinery, or other personal property that is titled or registered, which the debtor owns or listed on the bankruptcy schedules:

(i) a copy of the current title or, if none, a copy of the current registration;

(ii) if the asset is collateral for a secured debt, the most recent statement of balance due from the secured creditor; and

(iii) a copy of the most recent appraisal or valuation;

(C) for each bank account in which the debtor had an interest within three months of the bankruptcy filing, copies of the monthly bank statements for the three-month period prior to and through the date of filing;

(D) for any personal injury lawsuit or other lawsuit or cause of action in which the debtor has an interest or believes they may have an interest, as of the date of the bankruptcy filing, including all those set forth on Official Form 106 A/B or Official Form 206 A/B of the debtor's schedules:

(i) the name and address of the attorney representing the debtor in the action; and

(ii) a copy of the complaint and any correspondence with respect to the status of the action, or a brief statement of the cause of action, and the anticipated parties if no lawsuit has yet been commenced;

(E) copies of completed federal and state income tax returns, including all schedules and attachments, for the two years prior to the year of the filing of the bankruptcy case, see also Local Rule 4002-2;

(F) for all asset transfers within one year prior to the bankruptcy filing, any documents evidencing those transfers, including copies of the bills of sale, closing statements, deeds, and divorce decrees;

(G) for all retirement plans, annuities, or life insurance policies in which the debtor had an interest within one year prior to the bankruptcy filing:

(i) a statement of current value; and

(ii) statements showing all activities in each retirement plan, annuity, or insurance policy for the 12 months prior to bankruptcy the filing date;

(H) a copy of any decree of divorce entered within one year of the bankruptcy filing and any State of Vermont Form 813A "Financial Affidavit" or 813B "Financial Affidavit of Property and Assets" filed during the course of the divorce proceedings, or equivalent inventory documents; and

(I) copies of all child support orders currently in effect or pending before any court.

(3) In chapter 13 cases, to the extent applicable, the debtor must provide the trustee, at least seven days before the first scheduled meeting of creditors: the documents set forth in subparagraph (2) above, as well as proof of insurance on all improved real estate, mobile homes, motor vehicles, boats, and business assets. If any of these assets are not insured, the debtor must also provide a written statement indicating which assets are not insured and explaining why.

(4) The debtor must also provide any additional documents (or copies thereof) as the case trustee reasonably requests and which the debtor has available.

(5) The debtor (or the debtor's principal in entity cases) must also bring the following documents to the meeting of creditors: (A) a government-issued photo identification card, and (B) the debtor's social security card. If the debtor does not have a social security card, then the debtor must bring one of the following documents, containing the debtor's social security number, to the meeting of creditors: a medical insurance card, a recent payment advice, a current W-2 form, a current IRS Form 1099, or an original Social Security Administration report.

(6) Individual chapter 11 debtors must provide to the United States Trustee, at least seven days before the date of the first scheduled meeting of creditors, the same documents that individual chapter 7 and 13 debtors must provide to the case trustee.

(d) Chapter 11 Debtor's Books and Records. Upon the filing of the petition, a chapter 11 debtor must close and preserve its present books of account, close all bank accounts, and open and maintain new books of account and bank accounts. If a chapter 11 debtor operates as a debtor-in-possession, it must document all income, expenditures, receipts, and disbursements, and other necessary financial information in the new books of account, and designate the account holder on all bank accounts and checks as a "debtor-in-possession."

(e) Chapter 11 Debtor's Monthly Operating Reports.

(1) All chapter 11 debtors must file monthly operating reports as required by § 1106 on the forms designated by the United States Trustee. (For Chapter 12 and Chapter 13 Operating Reports, see Rule 2015-1 and Rule 2015-2).

(2) Small business chapter 11 debtors, and all pro se chapter 11 debtors, must send the original, signed monthly operating report, along with the corresponding bank statements and copies of cancelled checks (with account numbers redacted), to the United States Trustee.

(3) Non-small business chapter 11 debtors represented by counsel must comply with 28 C.F.R. Part 58, which requires debtor's counsel to retain the original, signed monthly operating reports.

(4) If the Court has directed the appointment of a chapter 11 operating trustee under § 1104, such operating trustee shall comply with all applicable monthly operating report requirements.

(f) United States Trustee Operating Guidelines. A chapter 11 debtor must comply with all operating guidelines issued by the United States Trustee, unless the Court, for good cause shown and after proper notice, modifies or waives the debtor's obligation to do so.