Local Rule L.R. 2015-3: Duty of Debtor in Chapter 11 Case.

L.R. 2015-3 - Duty of Debtor in Chapter 11 Case. A. General Requirements. Refer to the Procedures Manual for general information regarding various obligations of the debtor in a Chapter 11 case.

B. Insurance Requirements - Debtor-in-Possession. 1. General Requirements. All debtors in a Chapter 11 case in which no Trustee has been appointed must: a. insure all estate assets against physical damage and loss with policy limits covering the asset values stated in the debtor's schedules; b. if applicable, maintain liability coverage for the debtor's operations and businesses; c. if applicable, and as appropriate or customary for the debtor's industry, maintain additional types of insurance (workers compensation, products liability, or professional liability); and d. require insurer(s) to notify the United States Trustee of any insurance claims or lapses of coverage. 2. Proof of Insurance. Upon request of any party, the Trustee or the United States Trustee, the debtor must provide proof of insurance, which must include a certificate of insurance, binder, or other document(s) from the insurance carrier stating amounts, types and period of coverage, and notification of any secured party as loss payee. Failure to provide such proof gives rise to a presumption that no insurance is in effect.

C. Subchapter V Specific Duties No later than seven (7) days after the filing of the Notice of Appointment of Trustee, the debtor must tender to the Subchapter V Trustee the sum of $1,000.00. The Subchapter V Trustee will hold these funds in escrow for the purpose of compensation for services rendered and reimbursement for out-of-pocket expenses. The dollar amount for deposit is subject to adjustment by the Court upon the request of any interested party. Payment of compensation and reimbursement to the Subchapter V Trustee from the escrowed funds is subject to allowance and approval by further order of the Court under Sections 503(b), 330, 331 and 1194 of the Bankruptcy Code, Federal Rule of Bankruptcy Procedure 2016 and Local Rule 2016-1. Failure of the debtor to tender the required amount within seven (7) days after notification of the appointment of the Subchapter V Trustee is cause for dismissal of the case.