Local Rule 4002-1: Debtor Duties

Local Rule 4002-1 Debtor Duties

(a) Tax Returns. Copies of a debtor's tax returns shall not be filed with the Clerk of Court unless a request has been filed by a party in interest or the filing is required by the Bankruptcy Code. If the debtor's tax returns are tendered to the court other than pursuant to a proper request, the Bankruptcy Code, or a court order, the Clerk's Office will not accept the returns and will return them to the debtor. Tax returns should be provided to the trustee or, if no trustee is appointed in a Chapter 11 case, to the Bankruptcy Administrator.

(b) Interpreters. Should a debtor require an interpreter, the following provisions apply:

(1) Interpreters for § 341 Meetings. The Bankruptcy Administrator provides language interpretation services for debtors at § 341 meetings of creditors. The debtor's attorney should access the Bankruptcy Administrator's website (www.ncwba.uscourts.gov) and use the "Request/Cancel Interpreter" link at least 10 days prior to the date of the first meeting to arrange for interpretation.

(2) Oath. The following oath shall be administered to the language interpreter or hearing impaired interpreter: Do you solemnly swear or affirm that in the first meeting of creditors in the bankruptcy case of , you will translate the testimony of the debtor(s) from the language into the English language, and the questions and instructions of all parties from the English language into the ___________ language, and make such other translations as may be required, according to the best of your ability?

(c) Duties of Chapter 7 Debtor. A debtor in a Chapter 7 case shall comply with the following:

(1) Trustee's Requests. The debtor shall provide the Chapter 7 trustee with documents responsive to the Standard Document Request available on the Bankruptcy Administrator's website (www.ncwba.uscourts.gov). The debtor shall comply with any request by the Chapter 7 trustee for turnover of property or production of documents within 14 days of the date of the request.

(2) Inventory or Equipment. When a stock of goods or business equipment is listed in the debtor's schedules, immediately after the general description thereof, the debtor shall:

(A) List the assets in need of attention including the nature and value of such assets;

(B) Append a short explanation of the assets' exact location;

(C) List the name and address of the custodian thereof;

(D) State the protection being given such property and the amount and duration of insurance coverage, if any; and

(E) List whether the assets are subject to any environmental hazards or concerns.

(3) Need for Immediate Attention. Where assets are in need of immediate attention, the debtor's attorney (or the debtor if pro se) shall immediately contact the Chapter 7 trustee assigned to the case and notify the trustee of the need for immediate attention and of the items listed in paragraph (c)(2) above. In the event the trustee is unavailable, the debtor's attorney (or the debtor if pro se) shall contact the Bankruptcy Administrator's office to comply with this local rule.

(d) Duties of Chapter 11 Debtor.

(1) Pre-confirmation. The court routinely enters Chapter 11 operating orders. The Bankruptcy Administrator and the Chapter 11 debtor-in-possession may agree upon an amendment to the operating order and submit a proposed amended operating order to the court for its consideration.

(2) Post-confirmation. Following the entry of an order confirming a plan of reorganization, the debtor, pursuant to Federal Rule of Bankruptcy Procedure 2015(a), shall continue to file monthly operating reports until such time as the case is closed by the Clerk of Court. These reports shall be in a form satisfactory to the Bankruptcy Administrator. The report shall be filed with the Clerk. Upon substantial consummation of the confirmed plan, as that term is defined in 11 U.S.C. § 1101(2), or such later date as appropriate, the debtor shall file with the Clerk a final report and accounting of the administration of the bankruptcy estate on the official form supplied by the Clerk. If this final report and accounting is not filed within 60 days of the date of the Order in Aid of Consummation, the court will conduct a status hearing to address issues pertinent to closing the case.

(3) Quarterly Fees. In cases in which the debtor is represented by counsel, upon receipt of certified funds from the Chapter 11 debtor for the purpose of paying quarterly fees, counsel should remit the payment for quarterly fees to the Clerk through Pay.gov.

(e) Duties of Chapter 13 Debtor. The debtor filing a petition requesting relief under Chapter 13 of the Code shall comply with the following:

(1) Disposition of Non-exempt Property of the Estate. The debtor shall not dispose of non-exempt property of the estate having a fair market value of more than $2,500 by sale or otherwise without prior notice to the Chapter 13 trustee of such disposition. This shall be a cumulative, rather than a per-transaction, dollar limitation over the life of the plan.

(2) Obtaining Credit. The Chapter 13 trustee may approve debtor requests to incur credit not to exceed $25,000 provided that the proposed credit transaction will be unsecured or secured only by personal property. All other debtor requests to incur credit must be approved by the court.

(3) Domestic Support Obligations. The debtor shall schedule, and provide for the payment as required, of all domestic support obligation claims, as the term is defined by 11 U.S.C. § 101(14A), during the pendency of the case. In order for the Chapter 13 trustee to comply with the noticing requirements of 11 U.S.C. § 1302(b)(6), the debtor shall schedule the correct and complete mailing address for each domestic support obligation claimant. If the debtor is unable to obtain the mailing address despite all reasonable efforts to do so, the Chapter 13 trustee is authorized to send all required notices to the domestic support obligation claimant in care of the appropriate state child support enforcement agency.

(4) Pre-confirmation Plan Modifications. If it is determined at the meeting of creditors that a proposed plan must be modified prior to confirmation pursuant to 11 U.S.C. § 1323, the Chapter 13 trustee shall continue the meeting for such period of time as is necessary for the debtor to file an amended plan and serve the amended plan on all affected parties in interest. The amended plan shall identify only those particular provisions that are the subject of the proposed modification(s) and shall conform substantially to Local Form 4A ("Amendment to Chapter 13 Plan"). The debtor shall be responsible for the proper service of the amended plan. This provision shall apply only to those proposed plan modifications that adversely affect the rights of a party in interest other than the debtor.

(5) Proof of Adequate Insurance for Debtors Engaged in Business. If requested by the Chapter 13 trustee, a debtor engaged in business as defined in 11 U.S.C. § 1304 shall obtain promptly and maintain continually in full force and effect a comprehensive business insurance policy with personal liability and physical damage coverage limits commensurate with the nature and scope of the debtor's business. The debtor shall list the Chapter 13 trustee as a loss payee on such policy and provide the trustee with such written documentation of the required coverage as may be requested from time to time.

(6) Debtor Certification at § 341 Meeting of Creditors. At the meeting of creditors, each debtor shall execute under penalties of perjury a written certification on Local Form 7 ("Chapter 13 Debtor's Certification and Affidavit—§ 341 Meeting") concerning, among others, the following matters:

(A) That the debtor is current on the payment of all post-petition domestic support obligations, if any, as required by 11 U.S.C. § 1325(a)(8);

(B) That the debtor has complied with all of the tax return filing requirements of 11 U.S.C. § 1308(a);

(C) That the statement of the debtor's average income for the six-month period ending on the last day of the calendar month immediately preceding the date of the commencement of the case is consistent with the amount as reflected on all payment advices, payroll records, checks, deposits, and any other sources of income; and

(D) That confirmation of the debtor's proposed plan shall be deemed a finding by the court that the debtor has so complied with these documentation and certification requirements.

The Chapter 13 trustee shall file the executed Local Form 7 with the court.