Local Rule 2014-3: DUTY OF ATTORNEY COMMENCING A CHAPTER 11 CASE ON BEHALF OF A DEBTOR WHICH IS A CORPORATION
Bankr. W.D.N.Y. — General rule
2014-3. DUTY OF ATTORNEY COMMENCING A CHAPTER 11 CASE ON BEHALF OF A DEBTOR WHICH IS A CORPORATION. [Former Rule 5 C]
A. A corporation which is a debtor-in-possession must be represented by an attorney duly admitted to practice before this Court and duly approved to serve as counsel for the estate by order of the Court.
B. It is the duty of an attorney who commences a chapter 11 case (whether by original petition or by obtaining an order of conversion to such chapter) on behalf of a corporate debtor to ensure that the debtor properly seeks approval of estate counsel promptly upon such commencement, or, in the alternative, to file with the Court an affidavit reciting that he or she has advised the debtor that the case would be dismissed or converted for absence of a counsel for the estate, reciting the diligent efforts made by the attorney both before and after the commencement of the chapter 11 case in assisting the debtor in obtaining such counsel, and explaining why such counsel was not obtained.
C. An attorney who fails in such duties may be found personally liable to any party who is damaged by the failure of the estate to be suitable represented.