Local Rule L.B.R. 4001-1: Automatic Stay - Relief From
Bankr. N.D. Tex. — Civil rule
L.B.R. 4001-1 Automatic Stay - Relief From.
(a) Motions; Service.
No summons is required. The movant shall file with the Bankruptcy Clerk a certificate of service attached to the motion, evidencing the mode of service and the names and addresses of the parties served, and a certificate of conference evidencing compliance with Local Bankruptcy Rule 9014-1(d)(1). The motion shall contain a notice of the requirement of the filing of a response to the motion as set forth in subdivision (b) of this rule. A motion for relief from the automatic stay shall be served on the following parties:
(1) The debtor, and, if the debtor is represented by an attorney, the attorney;
(2) Any attorney for a committee appointed or elected in the case, or if no attorney has been employed to represent the committee, through service on its members; and if no committee has been appointed in a chapter 9 or 11 case, the creditors included on the list filed pursuant to Bankruptcy Rule 1007(d);
(3) Any party scheduled in the case as holding a lien, with respect to a motion seeking relief from the stay of an act against property;
(4) The United States Trustee;
(5) Any trustee or examiner appointed in the case; and
(6) All parties requesting notice pursuant to Local Bankruptcy Rule 2002-1(j).
(b) Response Required.
Any party opposing the motion for relief from stay shall file a response within 14 days from the date of service of the motion. Such response shall include a detailed and comprehensive statement as to how the movant can be "adequately protected" if the stay is to be continued. If no response is filed, the allegations in the motion may be deemed admitted, and an order granting the relief sought may be entered by default. The motion for relief shall contain a statement in substantially the following form:
PURSUANT TO LOCAL BANKRUPTCY RULE 4001-1(b), A RESPONSE IS REQUIRED TO THIS MOTION, OR THE ALLEGATIONS IN THE MOTION MAY BE DEEMED ADMITTED, AND AN ORDER GRANTING THE RELIEF SOUGHT MAY BE ENTERED BY DEFAULT.
ANY RESPONSE SHALL BE IN WRITING AND FILED WITH THE CLERK OF THE UNITED STATES BANKRUPTCY COURT AT (ADDRESS OF CLERK'S OFFICE) BEFORE CLOSE OF BUSINESS ON (MONTH) (DAY), (YEAR), WHICH IS AT LEAST 14 DAYS FROM THE DATE OF SERVICE HEREOF. A COPY SHALL BE SERVED UPON COUNSEL FOR THE MOVING PARTY AND ANY TRUSTEE OR EXAMINER APPOINTED IN THE CASE. ANY RESPONSE SHALL INCLUDE A DETAILED AND COMPREHENSIVE STATEMENT AS TO HOW THE MOVANT CAN BE "ADEQUATELY PROTECTED" IF THE STAY IS TO BE CONTINUED.
(c) Discovery.
The time within which responses to discovery requests on automatic stay issues are due under Bankruptcy Rules 7028-7036 is shortened from 30 to 14 days. Similarly, depositions on automatic stay issues may be taken commencing at the expiration of 14 days after service of the motion for relief from the automatic stay.
(d) Attorney Certification.
In any evidentiary hearing conducted on a motion for relief from the automatic stay, all counsel shall certify before the presentation of evidence: (1) that good faith settlement discussions have been held or why they were not held; (2) that all exhibits, appraisals and lists of witnesses (it is presumed that the debtor(s) will testify) have been exchanged at least 2 days in advance of the hearing date; and (3) the anticipated length of the hearing. Exhibits shall be marked in advance of the hearing and two bound, marked sets of exhibits shall be presented to the court prior to the commencement of the hearing.
(e) Preliminary Hearings and Affidavits
(1) Preliminary Hearings and Affidavits, Generally. Absent compelling circumstances warranting an alternative procedure, evidence presented at preliminary hearings in the Dallas and Fort Worth Divisions on motions for relief from the automatic stay will be by affidavit only. Except as set forth below (with regard to a motion filed by the holder of claim secured by a security interest in the debtor's principal residence, and with regard to requests for expedited settings), the party requesting the hearing shall serve evidentiary affidavits at least 7 days in advance of such hearing; the responding party shall serve evidentiary affidavits at least 2 days in advance of such hearing; the party requesting the hearing must give notice to all other affected parties of the requirement of this rule. The failure of a respondent to file an evidentiary affidavit, or the failure of an attorney to attend a scheduled and noticed preliminary hearing, shall be grounds for granting the relief, regardless of the filing of a response to the motion.
(2) Special Affidavits and Proof Requirements for Holders of Mortgages on a Debtor's Principal Residence (Applicable in all Chapter Cases). Whenever a motion for relief from automatic stay or whenever a motion for approval of an agreement regarding automatic stay is filed regarding a security interest in the debtor's principal residence, an affidavit in support of the motion shall be filed and served on the debtor, debtor's counsel, trustee, United States Trustee, and any other affected party within 7 days of the filing of the motion–regardless of the hearing date and regardless of whether any opposition is expected. The affidavit must be signed and certified under penalty of perjury by a person with knowledge of the facts, and must include: (a) a copy of the note or other debt instrument and any and all assignments thereof to substantiate proof of holder status; (b) a copy of the deed of trust showing the date, volume, page and county of recordation; and (c) in the event of alleged delinquent payments as a "cause" for relief from stay, a chronological payment history for the debtor showing, on a month-by-month basis, beginning with the first payment alleged to be delinquent, the date payment was due, the amount due, the date payment was received (if applicable), the amount received (if applicable), how any received payments were applied (e.g., applied to balance, put in suspense, put in escrow, etc.), and also indicating any other types of defaults alleged including escrow shortages, such as for payments for insurance premiums or ad valorem tax payments made by the creditor. The affidavit shall clearly reflect all amounts received by the movant since the debtor allegedly first became delinquent, and whether such amounts were applied to indebtedness, put in suspense, or otherwise dealt with. The response deadline for motions for relief from automatic stay or for a motion for approval of an agreement regarding automatic stay regarding security interests in the debtor's principal residence, as well as the affidavit deadline for any responders, is the same as set forth in subdivisions (b) and (e)(1) of this L.B.R. 4001-1. No Order will be entered on a motion for relief from automatic stay or on a motion for approval of an agreement regarding a security interest in the debtor's principal residence unless an affidavit complying with this subdivision is filed and properly served (regardless of whether there is any pending opposition to the motion by any party).
(3) Time for Filing Affidavit in the Event of a Request for an Expedited Hearing. Notwithstanding the foregoing, whenever a party seeks an expedited setting on a motion for relief from automatic stay, an affidavit in support of such motion shall be filed at the time of the filing of the motion.
(4) Motions to Extend Time to File Affidavits/Dismissal of Stay Motions. In the event that an Affidavit is not timely filed by a holder of a security interest in the debtor's principal residence, as set forth in subsection (e)(2) above, the underlying motion may be sua sponte dismissed by the court. A holder of a security interest in the debtor's principal residence may move for an extension of time to file the required affidavit, but (a) extensions shall be granted only in exceptional circumstances; and (b) in the event of an extension, the preliminary hearing will be continued out to a date that is at least as many days long as the extended time to file the affidavit. By seeking such an extension, the holder of a security interest in the debtor's principal residence waives the time periods provided by Section 362(e).
(5) Application of Rule of Divisions. Subsections (2) through (4) of this Rule 4001-1(e), describing the specific affidavit requirements in connection with stay motions involving a debtor's principal residence, apply in all Divisions of the Northern District of Texas. Subsection (1) of this Rule 4001-1(e), which more generally refers to there being preliminary hearings on motions to lift stay, applies only in the Dallas and Fort Worth Divisions.
(f) Continuation or Imposition of Automatic Stay.
(1) Motion Required. Any party that seeks a continuation or imposition of the automatic stay under 11 U.S.C. §§ 362(c)(3)(B) or -(c)(4)(B) shall file a motion with the court, and shall set the motion for hearing on notice to all parties against whom the movant seeks to continue or impose the stay.
(2) Filing, Service and Setting. The motion shall be filed and served promptly upon the filing of a petition for relief under the Bankruptcy Code so that it may be heard by the court within 30 days of the date of the filing of the petition, and so that parties may be given at least 21 days' notice of the hearing without the need for an expedited or emergency hearing, which will be granted only in exceptional circumstances. A copy of the motion and notice of hearing shall be served on all parties against whom the debtor seeks to continue or impose the stay, and proof of such service shall be filed within 2 days after service of the motion.
(3) Content of Motion. The motion shall:
(A) specifically allege the identity of the creditor(s) as to which the movant seeks to continue or impose the stay;
(B) identify, by case number, any and all prior bankruptcy filings by the debtor;
(C) state whether the debtor has had more than one previous case pending within the preceding year;
(D) state whether any previous case was dismissed within the preceding year after the debtor failed to perform any of the acts set forth in 11 U.S.C. § 362(c)(3)(C)(i)(II);
(E) state whether there has been a substantial change in the financial or personal affairs of the debtor and, if so, support the statement with specific factual allegations;
(F) state whether any creditor moved for relief from the automatic stay in a previous case and, if so, the disposition of that motion; and
(G) allege specific facts entitling the movant to relief.
(4) Evidence Presented at Hearing. At the hearing on the motion, the movant shall present evidence demonstrating that the new case is filed in good faith as to the creditor(s) to be stayed. The movant shall be present at the hearing to testify.
(g) Hearing Dates in Complex Chapter 11 Cases.
In a complex chapter 11 case, the movant may not schedule preliminary or final hearings on the Court's general lift stay self-calendar dates unless the Court has scheduled no future omnibus hearing dates in the applicable complex chapter 11 case. In complex chapter 11 cases, the movant shall be required to schedule hearings on the motion for relief from stay on one of the next available omnibus hearing date, following the requisite amount of time necessary for responses under these rules. The Court may not consider the motion if the movant fails to follow this rule.