Local Rule 1002-3: Automatic Stay as to Rental Deposits

Local Rule 1002-3 Automatic Stay as to Rental Deposits

(a) Automatic Stay as to Rental Deposits. The following procedures apply when a debtor proceeds under 11 U.S.C. § 362(l)(1):

(1) Any deposit of rent made by or on behalf of a debtor must be in the form of a certified check, cashier's check, or money order payable to the lessor and delivered to the Clerk of Court at the time of the filing of the petition, or no later than one business day after filing of the petition and certification under 11 U.S.C. § 362(l)(1);

(2) The debtor must file a copy of the judgment for possession at the time of filing of the petition; and

(3) Upon receipt of the funds and a copy of the judgment for possession, the Clerk is directed to transmit the funds to the lessor.

(b) Debtor's Failure to Follow Procedures. If a debtor who is required to follow the procedures of 11 U.S.C. § 362(l)(1) and Local Rule 1002-3(a) does not do so, the lessor may move the court for an order confirming the exception to the automatic stay pursuant to 11 U.S.C. § 362(b)(22). Such a motion may be filed on a no protest basis pursuant to Local Rule 9013-1(e).