Local Rule L.R. 1019: Conversions.

L.R. 1019 - Conversions. A. General Filing Requirements in a Converted Case. 1. Matrix, Verification of Matrix, and Attorney Compensation Disclosure Statement. No later than fourteen (14) days after entry of the order of conversion, the debtor must file a Fed. R. Bankr. P. 2016(b) attorney compensation disclosure statement for the converted case in accordance with L.R. 2016-1, and, when converting from Chapter 11, 12, or 13, a new matrix that must include any creditors holding post-petition claims and a new matrix verification. A new matrix is not required if there are no such creditors to add to the matrix.

2. Individual Debtors. a. Amended Schedules I and J: No later than fourteen (14) days after entry of the order of conversion, an individual Debtor must file amended schedules I, J, and, if applicable, J-2 accurate as of the date of conversion. If there is no change to the Debtor's information on schedules, I, J, and/or J-2, the Debtor must indicate this in the memorandum accompanying the amended schedules. b. Lists of Post-Petition, Pre-Conversion Debts, Property, and Executory Contracts: The lists filed pursuant to this subsection must include the information required by the applicable Official Form schedules. The applicable Official Form may be, but does not have to be, used. No memorandum is required to be filed with these lists, and no notice of amendment to schedules is required for the creditors listed pursuant to this Rule. Requirements for lists of debts, property, and executory contracts in cases not addressed by this subsection will be set forth in the Court's conversion order. No later than fourteen (14) days after entry of the order of conversion, the Debtor, i. when converting from Chapter 13 to Chapter 7, must file a list of each debt remaining unpaid that was incurred after the filing of the petition but before the conversion, or must file a statement that no such debts exist; ii. when converting from Chapter 11 or 12 to Chapter 7, must file a list of (1) each item of property acquired after the filing of the petition and remaining in the estate at the time of conversion, (2) each item of property disposed of before the conversion along with the manner of disposal, the names of any buyers, and any prices obtained, (3) each debt remaining unpaid that was incurred after the filing of the petition but before the conversion, and (4) all executory contracts into which the debtor has entered after the filing of the petition but before the conversion, or must file a statement that no such debts, property, or contracts exist. iii. when converting from Chapter 7, must file a list of each item of property acquired after the filing of the petition but before the conversion, or must file a statement that no such property exists. c. Applicability of 11 U.S.C. §348(f)(2): If the Court enters an order that Bankruptcy Code §348(f)(2) applies to the case, no later than fourteen (14) days after entry of the order, the Debtor must file a list of each item of property acquired after the filing of the petition but before the conversion, or must file a statement that no such property exists. d. General Provisions: When converting to a Chapter 7 case, there is no fee due for timely filing any list or amended schedule under this Rule prior to the expiration of the 14-day deadline. Compliance with this Rule is deemed to meet the requirements of filing the schedules specified in Fed. R. Bankr. P. 1019(5). Service on the Trustee of the amended schedules, lists, and statements required by this Rule in the converted case should be made through the Court's CM/ECF system, and no certificate of service is necessary. If the Trustee also requires paper copies of the lists, schedules, or statements to be provided prior to the § 341 Meeting, the debtor must provide such paper copies. Lists or statements filed pursuant to this Rule may be combined in one document as long as that document contains clearly marked categories of debts, assets, and/or executory contracts, and as long as this does not cause any statement or list to be untimely filed. The lists or statements may be filed with amended schedules I, J, and J-2 as long as they do not cause amended schedules I, J, and/or J-2 to be untimely filed. The lists, schedules, and statements should be filed using the pathway found via the Amended Schedules event in the Court's CM/ECF system. Failure to timely file any documents required by this Rule constitutes cause to dismiss the case. e. Additional Documents Provided to Chapter 7 Trustee - Individual Case: In a case converted to Chapter 7, the debtor must: i. provide to the Trustee documentation supporting the expenses claimed on the Means Test Official Form no later than fourteen (14) days prior to the post-conversion § 341 Meeting; ii. provide to the Trustee, no later than fourteen (14) days prior to the post-conversion § 341 Meeting, the documents required by L.R. 1007-2(A); iii. provide to the Trustee, no later than seven (7) days prior to the post-conversion § 341 Meeting, the tax returns required by L.R. 1007-4(A) and for the tax period which includes the petition date; and iv. provide to the Trustee, no later than fourteen (14) days prior to the post-conversion § 341 Meeting, copies of all depository, brokerage, and similar account statements covering the petition date. These documents should not be filed with the Court. Failure to timely provide any of these documents in accordance with this Rule constitutes cause to dismiss the case. f. Chapter 13 Plan and Attorney Fee Election Form: In a case converted to Chapter 13, the debtor must file a Chapter 13 plan and an attorney fee election form no later than fourteen (14) days after entry of the order of conversion.

3. Debtors that are not Individuals. A debtor that is not an individual and that is converting to Chapter 7 is not required to comply with subsection (A)(2), but such debtor (or Trustee, if one has been appointed in a Chapter 11 case) must file the schedule of unpaid debts and final report and account pursuant to Fed. R. Bankr. P. 1019(5) within the time frames set forth therein. Such schedule and report must include (1) each item of property acquired after the filing of the petition and remaining in the estate at the time of conversion, (2) each item of property disposed of before the conversion along with the manner of disposal, the names of any buyers, and any prices obtained, (3) each debt remaining unpaid that was incurred after the filing of the petition but before the conversion, and (4) all executory contracts into which the debtor has entered after the filing of the petition but before the conversion.

4. Means Test/Statement of Current Monthly Income Forms. When an individual debtor seeks to convert a case to one under Chapter 7, 11 or 13, the debtor must either attach the appropriate Official Form B 122 A-1 (and, if necessary, B 122A-1 Supp and/or B 122 A-2), B 122 B, or B 122 C-1 (and, if necessary, B 122 C-2) to the debtor's motion or notice to convert, or file the appropriate form(s) simultaneously with the motion or notice to convert. An individual debtor does not have to attach any of the Official Forms referenced above when seeking to convert their case to one filed under Subchapter V. Failure to attach or promptly file the appropriate form(s) for the converted case may result in denial of the motion to convert, or dismissal or reconversion of the case. The information provided on the Form B 122 filed for the converted case should reflect average monthly income for the six (6) calendar months prior to the filing of the original bankruptcy petition.

B. Reconversion of Certain Chapter 13 Cases. Although the failure to timely take any action required by this Rule constitutes cause for dismissal, the Court ordinarily will reconvert a case converted from Chapter 7 to Chapter 13, rather than dismiss the case if the debtor fails to: 1. file the documents required by this Rule or as required in the order of conversion; 2. attend the § 341 Meeting; 3. propose a plan in good faith; or 4. timely commence plan payments. If the case is reconverted to a Chapter 7, Fed. R. Bankr. P. 1019 is applicable.

C. Initial Debtor Interview upon Conversion to Chapter 11. Promptly upon conversion of a case to Chapter 11, the debtor (if not represented by an attorney) or the debtor's attorney (if any) should contact the Office of the United States Trustee to schedule the § 341 Meeting, and arrange for an initial debtor interview. The debtor and the debtor's attorney (if any) should review the United States Trustee's requirements and role in administering a Chapter 11 case found in the Procedures Manual.