Local Rule 7041-1: DISMISSAL OF ADVERSARY PROCEEDINGS

RULE 7041-1 DISMISSAL OF ADVERSARY PROCEEDINGS At least 14 days' written notice of a hearing on the proposed voluntary dismissal of a complaint (or count within a complaint) objecting to the debtor's discharge shall be given to the United States trustee, the trustee, any creditor or party in interest who has filed a request for notices, and, in an individual chapter 11 case, the members of the creditors' committee, or, if no creditors committee has been appointed, the creditors on the list of 20 largest unsecured creditors. The notice shall fully and clearly state any consideration paid or promised to be paid by the debtor to the plaintiff in connection with such dismissal. Whether an actual hearing will be required if no objections are filed is within the discretion of the judge.

Comments 7041-1 FRBP 7041 provides that "a complaint objecting to the debtor's discharge shall not be dismissed at the plaintiff's instance without notice to the trustee, the United States trustee, and such other persons as the court may direct…." This leads to something of a cumbersome situation where a plaintiff does seek to dismiss such a complaint (or count within a complaint). Literally, it seems that the plaintiff would first have to advise the court of such intent and obtain an order directing to whom the notice should be given, then appear again to have the actual order of dismissal considered and entered. This new rule is intended to clarify matters as to who had to be given notice. [New rule effective 2/1/00.]

7041-1 A time-computation adjustment has been made at paragraph (G) to conform to a revision to the Federal Rules of Bankruptcy Procedure that takes effect December 1, 2009. Stylistic changes have been made to the text of the LBR as well. [Changes effective 12/01/09.]