Local Rule 4001–3: OBTAINING CREDIT
Bankr. S.D. Ohio — General rule
4001–3 OBTAINING CREDIT
(a) Chapter 11 Cases. All financing motions and stipulations or agreed orders related to financing motions filed shall comply with LBR 4001–2.
(b) Chapter 13 Cases. The debtor may not incur non-emergency consumer debt in excess of one thousand dollars ($1,000.00), including the refinancing of real property debt, without written approval of the trustee or order of the court under the procedure set forth herein.
(1) Application Directed to Trustee. The debtor shall first request approval to incur debt by written application to the trustee which shall include the items in (c) below. Such application shall not be filed with the clerk. If approved by the trustee, the trustee shall file the application and the approval and the debtor may incur the debt in accordance with the terms and conditions approved by the trustee.
(2) Motion Directed to Court. If the debtor's application is not approved by the trustee, the debtor may file a motion to incur such debt. The motion shall contain a copy of the trustee's denial of the application.
(c) Contents of Application or Motion. Any motion filed under Rule 4001(c), including any application or motion pursuant to (b) above, shall contain:
(1) a statement in support of the feasibility of the request:
(2) a description of the item to be purchased or the collateral affected by the credit to be obtained;
(3) a description of the interest held by any other entity in any collateral affected by the credit;
(4) the reasons the debtor needs the credit;
(5) the terms of any financing involved, including the interest rate;
(6) a description of any method or proposal by which an interest held by any other entity in the collateral affected by the credit may be protected; and
(7) copies of all documents by which the interest of all entities in the collateral affected by the credit was created or perfected, or, if any of those documents are unavailable, the reason for the unavailability. The debtor shall make its best effort to obtain and file any documents which are unavailable as soon as possible after the motion is filed.
(d) Preliminary Hearing. If the debtor asserts an immediate need for the obtaining of credit, the court may schedule a preliminary hearing on the motion after notice has been provided to any entity claiming an interest in the collateral affected by the credit to be obtained. Notice provided pursuant to LBR 9013–3 may be by telephone, facsimile (fax) or email if time does not permit notification by mail.