Local Rule LR 9.08 / LR 9019-1: Compromise and Settlement

In the event the parties compromise their positions and settle the matter in controversy, a motion to compromise shall be filed with the Court which sets forth the terms and conditions of the proposed settlement. The terms of the settlement shall be sent out on twenty (20) day negative notice to all creditors and other parties in interest when the agreement involves the trustee or debtor-in-possession and has an effect on the assets of the debtor's estate, or if the Court, on its own discretion, requires such notice.

The parties shall submit an agreed order which has been signed by counsel for all parties for consideration by the Court. If the terms of the compromise have been sent out on notice, the Court may approve the compromise by entry of the agreed order at the end of the twenty (20) day period if no objections have been filed. If an objection has been filed, the Court will set it for hearing.

Cross reference Bankruptcy Rules 2002(a); 9019 Appendix G-4