Local Rule 4002-2: Service of Process. Compensation of Debtor and Insiders

4002-2. Service of Process. Compensation of Debtor and Insiders.

(a) Compensation. Except in chapter 13 cases and as provided in LBR 4002-2(c) in Individual chapter 11 cases, no compensation or other remuneration will be paid from property of the estate to the debtor or any Insider unless approved by the Court, after notice of intended action in accordance with LBR 2002-2(d).

(b) Chapter 13 Cases. In chapter 13 cases, payment of salary and expenses consistent with the debtor's Schedule I and J is appropriate unless an interested party objects and the Court orders otherwise.

(c) First 45 Days of Individual Chapter 11 Cases. In an Individual chapter 11 case, provided that the Individual chapter 11 debtor files the Notice described in LBR 4002-2(d) within 7 days of the Petition Date, the Court allows payment of salary and expenses consistent with the debtor's schedules I and J for 45 days from the Petition Date unless an interested party objects or the Court orders otherwise.

(d) Notice of Setting/Increasing Insider Compensation. No compensation or other remuneration may be paid from the property of the estate to debtor's Insiders, until confirmation of a plan, unless:

(1) The debtor is an Individual chapter 11 debtor in which case the debtor: (i) may pay salary and expenses consistent with the debtor's schedule I and J within the 7 days following the Petition Date, and (ii) may pay salary and expenses as provided in LBR 4002-2(c).

(2) The debtor serves notice of proposed Insider or proposed Individual chapter 11 debtor compensation in accordance with the procedures in these local rules and obtains an order approving the compensation or is otherwise entitled to make payment pursuant to LBR 4002-2(d)(5).

(3) Further, compensation to insiders may not be increased after approval unless the debtor serves a notice of the proposed increase in Insider or Individual chapter 11 debtor compensation.

(4) The debtor must: file and serve the 4002-2(d)(2) notice on the U.S. Trustee, and all creditors; and file a Proof of Service. The debtor must file and serve the notice of a request for an increase in compensation on the U.S. Trustee, the creditors committee, or the 20 largest creditors if no committee has been appointed, any other committee appointed in the case, counsel for any of the foregoing, and any secured creditor that claims an interest in cash collateral; and any party requesting special notice; and file a Proof of Service.

(5) Any Insider may receive compensation or other remuneration from the estate if no objection is received within 14 days after service of the notice. The Insider may also receive an increase in the amount of Insider compensation previously approved if no objection is received within 30 days after service of notice.

(6) Any objecting party must obtain a hearing date and file an objection, a notice of hearing, and a Proof of Service.