| TABLE OF CONTENTS |
|
| PART I |
COMMENCEMENT OF CASE; PROCEEDINGS RELATING TO PETITION
AND ORDER FOR RELIEF
|
|
|
| Local Rule 1002-1 |
Protection of Personal Privacy |
| Local Rule 1002-2 |
Petition - General |
| Local Rule 1002-3 |
Chapter 11 First-Day Financing Orders |
| Local Rule 1006-1 |
Filing Fee |
| Local Rule 1007-1 |
Lists, Schedules, and Statements; Time Limits |
| Local Rule 1007-2 |
Master Mailing Matrix |
| Local Rule 1007-3 |
Compliance with Statement of Intentions |
| Local Rule 1014-1 |
Transfers of Venue Within District |
| Local Rule 1015-1 |
Case Deconsolidation |
| Local Rule 1017-1 |
Debtor's Failure to Appear at First Meeting of Creditors |
| Local Rule 1071-1 |
Divisions - Bankruptcy Court |
| Local Rule 1073-1 |
Assignment of Cases |
|
|
| PART II |
OFFICERS AND ADMINISTRATION; NOTICES; MEETINGS; EXAMINATIONS;
ELECTIONS; ATTORNEYS AND ACCOUNTANTS
|
|
|
| Local Rule 2002-1 |
Notice to Creditors and Service of Papers |
| Local Rule 2016-1 |
Appointment of Professional Persons; Retainers Held by Professional
Persons and Chapter 11 Attorney Fee Applications
|
| Local Rule 2016-2 |
Trustee Search Fee |
| Local Rule 2090-1 |
Representation of Business Entities |
| Local Rule 2090-2 |
Special Admissions |
| Local Rule 2091-1 |
Extent of Attorney's Duty to Represent |
|
|
| PART III |
CLAIMS AND DISTRIBUTION TO CREDITORS AND EQUITY INTEREST
HOLDERS; PLANS
|
|
|
| Local Rule 3001-1 |
Claims and Equity Security Interests |
| Local Rule 3015-1 |
Dismissal or Conversion of Chapter 13 Cases |
| Local Rule 3016-1 |
Motion to Extend Exclusivity Period |
| Local Rule 3018-1 |
Chapter 11 Balloting |
|
|
| PART IV |
THE DEBTOR: DUTIES AND BENEFITS
|
|
|
| Local Rule 4001-1 |
Motions for Relief from Stay |
| Local Rule 4002-1 |
Debtor Duties |
| Local Rule 4003-1 |
Exemption Election |
| Local Rule 4004-1 |
Certificates of Discharge |
| Local Rule 4071-1 |
Limitations on Creditor Contact with Debtors |
|
|
| PART V |
COURTS AND CLERKS
|
|
|
| Local Rule 5001-1 |
Clerk - Office Hours |
| Local Rule 5001-2 |
Clerk's Entries |
| Local Rule 5005-1 |
Electronic Case Filing |
| Local Rule 5005-2 |
Return of Originals/Copies |
| Local Rule 5009-1 |
Trustee's Duty to File Final Report |
| Local Rule 5011-1 |
Abstention |
|
|
| PART VI |
COLLECTION AND LIQUIDATION OF THE ESTATE
|
|
|
| Local Rule 6005-1 |
Auctioneers |
|
|
| PART VII |
ADVERSARY PROCEEDINGS
|
|
|
| Local Rule 7003-1 |
Adversary Proceeding Cover Sheet |
| Local Rule 7007-1 |
Motion Practice in Adversary Proceedings |
| Local Rule 7016-1 |
Pretrial Procedures |
| Local Rule 7026-1 |
Discovery - General |
| Local Rule 7041-1 |
Dismissal of Actions for Lack of Prosecution |
| Local Rule 7067-1 |
Deposit and Investment of Funds Held by Clerk |
|
|
| PART VIII |
APPEALS TO DISTRICT COURT
|
|
|
|
Reserved
|
|
| PART IX |
GENERAL PROVISIONS
|
|
|
| Local Rule 9006-1 |
Time Limits |
| Local Rule 9013-1 |
Motion Practice |
| Local Rule 9013-2 |
Briefs in Adversary Proceedings |
| Local Rule 9014-1 |
Contested Matters |
| Local Rule 9019-1 |
Settlements of Adversary Proceedings |
| Local Rule 9021-1 |
Tender of Judgments and Orders |
| Local Rule 9022-1 |
Certificate of Service for Orders |
| Local Rule 9028-1 |
Disqualification of Judges |
| Local Rule 9035-1 |
Service of Papers on the Bankruptcy Administrator |
|
|
| APPENDICES |
| APPENDIX A |
Guidelines for Compensation and Expense Reimbursement
of Professionals
|
|
| APPENDIX B |
Chapter 11 Information |
|
| APPENDIX C |
Local Forms |
|
PART I
COMMENCEMENT OF CASE; PROCEEDINGS RELATING TO
PETITION AND ORDER FOR RELIEF
Local Rule 1002-1 Protection of Personal Privacy
-
Public Records. All filings with this Bankruptcy Court are
public records.Absent a specific order limiting publication, the
Court's records are maintained in electronic format and are available
to the public on the internet. Any person who desires to limit
publication of records in this manner must timely do so in accordance
with this Local Rule.
-
Responsibility of Debtor. The protection of personal privacy is
the responsibility of the debtor, not the debtor's counsel. The Court
expects that the procedures outlined in this rule will be invoked
only upon the debtor's request that the debtor's privacy be protected.
-
Motion to Approve Limitation of Publication. The debtor may
request that the personal identifiers listed in this Local Rule be
redacted from documents filed with the Court, including the debtor's
petition, claims, and pleadings; that documents be sealed from
publication in their entirety; and/or that publication be limited in
some other manner. Such request must be made by motion filed
contemporaneously with the document. The motion shall be noticed to all
parties in interest, the Bankruptcy Administrator, and the trustee.
-
Personal Identifiers. The Court may order the redaction of the
following personal identifiers from documents filed with the Clerk:
-
Name of Minor Child. The name of a minor child may be
redacted; relationship to parent, gender, and age are acceptable
substitutions.
-
Dates of Birth. All but the year of the debtor's birth may
be redacted.
-
Financial Account Numbers. All but the last four digits of
the debtor's financial account numbers may be redacted.
-
Compliance. Upon Court order limiting publication, the
responsibility for making the appropriate modifications to documents
before filing and otherwise complying with the order of the Court
rests solely with counsel and the parties. The Clerk will not review
documents filed for compliance with this Local Rule or otherwise
undertake to ensure limited publication. Counsel and the parties are
cautioned that it is their responsibility to ensure that documents
subject to a limitation on publication are in fact so limited, and
that failure to comply with the Court's order in this regard will
result in publication of the document.
Local Rule 1002-2 Petition - General
-
Electronic Filing. Attorneys shall file electronically all
petitions, schedules, and statements, including any schedule
deficiencies, unless leave of court is granted. In filing
electronically or non-electronically, attorneys shall comply with Local
Rule 5005-1. Filing electronically
shall constitute the signature of the attorney and debtor(s).
-
Waiver Requirements. Attorneys unable to file electronically may
seek a waiver through a letter to the Court. In instances where the
Court has granted leave to file non-electronically, complete petitions,
schedules, and statements, including any schedule deficiencies,
pursuant to Bankruptcy Rule 1007 and &code; 1321 of the Code,
are to be filed with the Court on a diskette in PDF format
. Chapter 13 plans are
required to be in a PDF format as a separate document on the diskette
provided to the Court. Filing non-electronically on diskette shall
constitute the signature of the attorney and debtor(s).
-
Joint Petitions. When a joint petition is filed by a husband
and wife who do not share the same surname, the debtors shall append
to their petition a duly executed affidavit verifying that they are
legally married at the time of filing of the petition. Such petitions
submitted without the required affidavit will be filed by the Clerk,
subject to dismissal in accordance with Local Rule
1007-1(b). This requirement is applicable to
cases filed pursuant to paragraphs (a), (b) and (c) above.
-
Petition Filed by a Corporation. When a voluntary bankruptcy
petition is filed by a corporation, there shall be attached to the
petition as an exhibit the original or a certified copy of the
resolution of the debtor's board of directors authorizing the filing of
the bankruptcy petition. Such petitions submitted without the required
board resolution will be filed by the Clerk, subject to dismissal three
days after filing without notice or opportunity for hearing.
-
CM/ECF.
The Court's case management and electronic filing system shall be
referred to as CM/ECF throughout these Local Rules.
Local Rule 1002-3 Chapter 11 First-Day Financing Orders
Guidelines. The Court has adopted certain guidelines for cash
collateral orders for Chapter 11 cases, which are
attached hereto as
Appendix B.
Local Rule 1006-1 Filing Fee
Failure to Pay Filing Fee in Installments. In the event the debtor
submits an application to pay the filing fee in installments, and the
debtor subsequently fails to pay the filing fee in installments pursuant
to the terms allowed by order of this Court, the debtor's case will be
subject to dismissal without further notice or opportunity for hearing.
Local Rule 1007-1 Lists, Schedules, and Statements; Time Limits
-
Chapter 11. When Chapter 11 Petitions, schedules, statements and
schedule deficiencies are filed electronically or non-electronically by
an attorney, the attorney is required to serve these documents upon the
following:
-
U.S. Bankruptcy Administrator
402 W. Trade Street
Suite 200
Charlotte, NC 28202
-
Securities & Exchange Commission
Branch of Reorganization
Suite 1000
3475 Lennox Road, NE
Atlanta, GA 30327-1323
-
Internal Revenue Service
320 Federal Place, Room 335
Attn: Insolvency Unit
Greensboro, NC 27401
-
Failure to File Lists, Schedules, Statements or Other Documents.
In the event a bankruptcy petition is filed with the Clerk of Court
without all of the lists, schedules, statements, or other documents
required to be filed in conjunction with the filing of a bankruptcy
petition by the Federal Rules of Bankruptcy Procedure or these Local
Bankruptcy Rules, the Clerk of Court shall immediately serve upon the
debtor(s), the debtor(s)' attorney, the trustee, and the petitioning
creditors, if applicable, a Notice of Deficient Filing. This Notice
notifies said parties that the specified documents were not filed with
the petition, and that the bankruptcy case will be subject to dismissal,
without further notice and opportunity for hearing.
Local Rule 1007-2 Master Mailing Matrix
-
Mailing Matrix. Attorneys filing petitions electronically are
required to download into the CM/ECF system a mailing matrix containing
the complete mailing address, including zip codes, for the following:
-
All creditors listed in the petition.
-
Internal Revenue Service, 320 Federal Place, Room 335, Attn:
Insolvency Unit, Greensboro, NC 27401, or the most current address on
file with the Clerk of Court.
-
North Carolina Department of Revenue, Office Services Division,
Bankruptcy Unit, Post Office Box 1168, Raleigh, NC 27602-1168, or the
most current address on file with the Clerk of Court.
-
If the United States is a party, the matrix should include the United
States Attorney, 227 West Trade Street, Suite 1700, Carillon
Building, Charlotte, NC 28202-1648, or the most current address on
file with the Clerk of Court and the appropriate agency
(e.g., FHA, RHS, FSA, VA, SBA).
-
In Chapter 13 cases, creditors or contingent creditors to whom notice
should be sent must be listed on the schedule of creditors as well as
on the matrix.
-
In Chapter 11 cases, in addition to the entities listed above,
attorneys are required to download into the CM/ECF system a mailing
matrix containing the complete mailing address, including zip code,
for the Bankruptcy Administrator, 402 W. Trade Street, Suite 200,
Charlotte, NC 28202.
The filing of the mailing matrix shall serve to certify the accuracy
thereof. The filer shall be responsible for any errors in or omissions
from the listing.
-
Non-electronically filed mailing matrices. Attorneys
who have been granted a waiver from the electronic filing requirement
pursuant to Local Rule 1002-2, or debtors or non-attorneys filing
non-electronically shall submit to the Clerk of Court at the time the
petition is filed a mailing matrix on diskette in
ASCII-DOS Text format, along with a
printed hard copy.
Local Rule 1007-3 Compliance with Statement of Intentions
Evidence of Compliance. Within 45 days of the filing of the
debtor's statement of intention, the debtor or the debtor's counsel shall
serve on the trustee evidence of delivery of the collateral, evidence of
reaffirmation of the debt, or other evidence showing compliance with the
debtor's statement of intention.
Local Rule 1014-1 Transfers of Venue Within District
-
Notice and Motion. A request to change divisional venue of a
case, adversary proceeding, or contested matter shall be made as follows:
-
by filing a
motion setting forth the reasons supporting the
change and evidencing the approval or disapproval
of the Bankruptcy Administrator;
-
by providing notice to all creditors
and other parties in interest explaining the request
with a
15-day opportunity for
objections;
-
by providing a certificate
of service of the notice by the movant evidencing service on all
creditors and other parties in interest, including all parties the
Court requires on a standard matrix; and
-
by tendering a
proposed order after the objection period has expired.
-
Rescheduling and Renoticing
of First Meeting. The moving party shall be responsible for
rescheduling and
renoticing the § 341
first meeting of creditors and providing a
certificate of service of the notice evidencing service on all creditors
and other parties in interest, including all parties the Court requires
on a standard matrix.
Local Rule 1015-1 Case Deconsolidation
-
Motion to Divide a Chapter 13 case
. A debtor seeking
to divide a joint case when both debtors are to remain in a Chapter 13
shall file a motion to divide. Such motion should be served on all
parties in interest, including all creditors and the Trustee and may be
filed on a "no protest" basis pursuant to Local Rule
9013.
-
Division and Conversion of One Debtor
. A motion to
divide is not required when an individual debtor in a joint case seeks
conversion to a different chapter. The debtor may convert the case by
filing the appropriate notice of conversion or obtaining an order upon
motion and paying the appropriate fee to convert and divide the case.
-
Dismissal of One Debtor. When the Court has
entered an order dismissing one debtor from a joint case, division of
that case is not necessary.
-
Filing Fees.
-
Upon the division of a joint case, the appropriate fee shall be paid
pursuant to 11 U.S.C. § 1930.
-
When a debtor seeks to both convert and divide a case, the debtor
shall pay the appropriate conversion fee in addition to the fee to
divide the case.
Local Rule 1017-1 Debtor's Failure to Appear at First Meeting of Creditors
or Failure to Pay First Money
Dismissal for Failure to Appear or to Pay First Money. In the event the debtor fails to
appear at the § 341 first meeting of creditors , or in a Chapter 13 case
where the debtor has not escrowed the first plan payment within 30 days after the filing of the proposed
plan or within such additional time that the Court may have previously granted for cause shown, the debtor's case will be
subject to dismissal without further notice or opportunity for hearing.
Local Rule 1071-1 Divisions - Bankruptcy Court
There shall be five divisions of the Court. The headquarters of each
division and the counties comprising each division are as follows:
| Name of Division | Clerk's Office | Counties |
Asheville (Case prefix 1) |
Asheville |
Avery, Buncombe, Haywood, Henderson,
Madison, Mitchell, Transylvania, Yancey
|
Bryson City (Case prefix 2) |
Asheville |
Cherokee, Clay, Graham, Jackson, Macon, Swain |
Charlotte (Case prefix 3) |
Charlotte |
Anson, Gaston, Mecklenburg, Union |
Shelby (Case prefix 4) |
Charlotte |
Burke, Cleveland, McDowell, Lincoln, Polk, Rutherford |
Wilkesboro (Case prefix 5) |
Charlotte |
Alexander, Alleghany, Ashe, Caldwell,
Catawba, Iredell, Watauga, Wilkes
|
Local Rule 1073-1 Assignment of Cases
Determination of Division for Assignment. In accordance with the
divisions established in Local Rule 1071-1, the
Clerk of Court shall assign all cases and proceedings to a division when
the action is filed or removed. The place of filing shall be determined
by the debtor's domicile, residence, principal place of business, or the
location of the debtor's principal assets immediately preceding the
filing of the bankruptcy case. In cases involving an affiliate, a
general partner or partnership, related cases shall be assigned to the
division where the original case was filed or is pending. In adversary
proceedings when there is no pending bankruptcy case in this district,
the division will be assigned at the discretion of the Clerk.
PART II
OFFICERS AND ADMINISTRATION; NOTICES; MEETINGS; EXAMINATIONS;
ELECTIONS; ATTORNEYS AND ACCOUNTANTS
Local Rule 2002-1 Notice to Creditors and Service of Papers
-
Amended or Supplemental Schedules. If additional creditors are
added after the debtor(s)' initial filing, the debtor shall serve the
§ 341 notice on the added creditors and promptly file a
certificate of service with the Clerk of Court.
-
Certificates of Service. The party filing a pleading shall serve
the pleading upon appropriate parties and file with the Clerk a
certificate of service either with the pleading or promptly after
service. The party obtaining relief from the Court shall serve a copy
of the filed order upon the appropriate parties.
-
Method of Service. Service of all pleadings and orders shall be
by first class mail or electronically.
-
Notice by Proponent. The proponent shall prepare and mail
notices required pursuant to Bankruptcy
Rule 2002(a)(2), (3) and Bankruptcy Rule 2002(f)(8).
-
Papers Required to be Served by Chapter 11 Debtors. In Chapter
11 cases, the debtor in possession shall be responsible for serving
the following papers and for filing a certificate of service with the
Clerk's Office within five days of the date of the mailing:
-
The debtor's plan;
-
The debtor's disclosure statement as approved by the Court;
-
The ballot;
-
Notice regarding balloting and date for hearing on confirmation of
the debtor's plan in a form approved by the Clerk's Office; and
-
Any other notices as the Court or Clerk shall direct in a particular
case in a form approved by the Clerk's Office.
-
Service of Chapter 11 Fee Application and Notice of Hearing. In
addition to proper service of the notice, copies of the full
applications for compensation shall be served by the applicant on the
debtor, the debtor's counsel, the Bankruptcy Administrator, and the
trustee, if a trustee has been appointed. In all cases in which there
is any Court appointed committee, a full copy of the fee application
shall also be served on the chairman of each such committee and its
counsel if such has been appointed, or if no counsel so serves, then
on all members of that committee who have accepted appointment.
-
Service of Chapter 13 Plan. In Chapter 13 cases, the debtor
shall serve copies of the Chapter 13 plan, prepared in conformance with
the Court approved local form, on all parties in interest as soon as
possible following the filing of the bankruptcy petition.
Local Rule 2016-1 Appointment of Professional Persons; Retainers
Held by Professional Persons and Chapter 11 Attorney Fee Applications
-
Professional Fee Guidelines. Professionals seeking compensation
are encouraged to refer to the Guidelines for Compensation which are
attached hereto as Appendix A.
-
Appointment of Professionals and Retainers.
-
Applications. Absent extraordinary circumstances, attorneys
and other professionals will not be appointed nunc pro tunc.
Applications for appointment filed within 30 days of the filing of
the petition or within 30 days of the date services commence,
whichever occurs later, shall be considered timely.
-
Retainers. In a Chapter 11 case, a retainer held by a
professional shall be maintained in a trust account. The
professional shall not draw against the retainer postpetition except
upon order of the Court.
-
Security Interests. Any agreements granting security interests
in the debtor's property or other property for the benefit of the
debtor to the debtor's attorney or any other professional employed by
the debtor to secure the payment of professional fees must be fully
disclosed in the petition and/or schedules and must be approved by the
Court. Any party receiving such an interest must make application to
the Court within 15 days of the date of filing of the petition or the
date of the agreement, whichever occurs later. Such application should
be served on all parties in interest, including the trustee and the
Bankruptcy Administrator, and may be filed on a "no protest" basis
pursuant to Local Rule 9013-1(e).
-
Chapter 13 Plan and Disclosure of Attorneys Fee Procedure. In
addition to filing the petition and schedules as required by the
Official Bankruptcy Forms, the debtor shall file its Chapter 13 plan in
conformance with Local Form 4 and shall file an executed Disclosure to
Debtor(s) of Attorneys Fee Procedure, in conformance with Local Form 3.
-
Compensation of Attorneys in Chapter 13 Cases.
-
Subject to paragraph (f)(5)
below, the amount of the fee in cases and with respect to pleadings
filed electronically shall be as follows:
-
The base fee in a Chapter 13 case is up to $1,600.
-
Any fee for non-base services that may be rendered a Chapter 13
debtor must be applied for and approved by the Court. For fees and
expenses under $1,000, notice need only be sent to the debtor(s),
the trustee, and the Bankruptcy Administrator. For fees and
expenses of $1,000 or more, all parties in interest must be
noticed. If a no-protest notice is used, it shall be given using
the form appended to these Local Bankruptcy Rules as Local Form 1.
-
Where substitute counsel is retained by a Chapter 13 debtor, the
attorney may collect a base fee of $450.
-
In cases and with respect to pleadings not filed electronically, the
base fee is up to $1,300, and all other fees scheduled in this Rule
2016-1 (e), (f), and (i) shall be
reduced by $100.
-
Definition of Base Fee Services.
-
The Base Fee shall be presumed to compensate the debtor(s)' attorney
for a level of services to the debtor(s) that shall at a minimum
include the following services:
-
Preparing and filing
the petition, schedules,
supplemental local forms, Chapter 13 plan and
matrix;
-
Circulating a copy of the Chapter 13 plan to all creditors and
interested parties as reflected in the case matrix;
-
Drafting and mailing letters to
debtor(s) regarding attendance at the § 341 meeting, escrow of
first money, and other responsibilities of the debtor(s);
-
Preparing for and
attending the § 341
meeting;
-
Reviewing the
confirmation order and periodic case status reports from the trustee;
-
Reviewing the
trustee's motion for allowance of claims;
-
Maintaining custody and control of all case files with original
documents for such periods as
prescribed by law or court rule;
-
Serving orders on all
affected parties;
-
Verifying
the debtor(s) identity and social security number;
and
-
Defending objection(s) to confirmation of the debtor(s)' plan.
-
The Base Fee shall also include the following services to the extent
they are requested or reasonably necessary for effective
representation of the debtor(s):
-
Preparing and filing
proofs of claim on behalf of
the debtor for a creditor;
-
Drafting and filing of objections to scheduled and unscheduled
proofs of claim;
-
Assuming and
rejecting
unexpired leases and executory contracts;
-
Preparing for and
attending
valuation hearings;
-
Motions to transfer venue;
-
Requesting copies of proofs of claim from the trustee;
-
Conferring with
the debtor(s) regarding obtaining postpetition credit, where no
formal application is ultimately filed;
-
Drafting motions to avoid liens pursuant to § 522(f) of the
Code;
-
Calculating plan payment
modifications, where no formal motion is ultimately filed;
-
Adding creditor addresses to the master mailing matrix pursuant to
filed proofs of claim and notices of appearance or assignment of
claims;
-
Responding to written creditor contacts regarding plan terms,
valuation of collateral, claim amounts, and the like;
-
Responding to debtor contacts regarding job losses, changes in
financial circumstances, address changes, and advising the Court
and the trustee of the same when appropriate;
-
Communicating with the debtor(s), to a degree that is reasonable,
regarding mortgage payment defaults, lease defaults, insurance
coverage or the lack thereof, warranties, possible credit
disability, life insurance coverage, and the like;
-
Obtaining and providing the trustee with copies of documents
relating to lien perfection issues, such as recorded deeds of
trust, purchase money security agreements, and the like;
-
Drafting and mailing letters to creditors upon entry of discharge
regarding lien releases, turn over of clear title certificates,
cancellation of deeds of trust and judgments, and the like;
-
Drafting and mailing certified letters
to creditors regarding matters related to alleged violations of the
automatic stay;
-
Drafting and mailing letters regarding voluntary turnover of
property;
-
Reviewing documents in
relation to the use or sale of collateral when no formal application
is ultimately filed; and
-
Providing the debtor(s) with a list of answers to frequently asked
questions and other routine communications with the debtor(s)
during the pendency of the case.
-
The following services are presumed not to be covered by the base
fee, and additional compensation may be awarded by the Court for the
following services. Non-base fees may not be requested of the
debtor(s) or paid by the debtor(s) or any other person, in trust or
otherwise, without prior approval of the Court:
-
Abandonment of property post-confirmation;
-
Motion for moratorium;
-
Motion for authority to sell property;
-
Motion to modify plan;
-
Motion to use cash collateral or to incur debt;
-
Defense of motion for relief from stay or co-debtor stay;
-
Defense of motion to dismiss filed after confirmation of the
debtor(s) plan;
-
Non-base fee requests;
-
Stay violation litigation, including amounts paid as fees by the
creditor or other party;
-
Post-discharge injunction actions;
-
Adversary proceedings;
-
Wage garnishment orders;
-
Turnover adversaries;
-
Conversion to Chapter 7;
-
Motions to substitute collateral; and
-
Any other matter not covered by paragraph (f)(1) above.
-
In the Court's discretion, attorneys in a Chapter 13 proceeding may
request, in open court, and without any further notice, non-base fees
for the following services and in the amounts not exceeding those
shown below. Without other notice, the debtor(s)' attorney may also
request the actual expenses of filing fees and of notice to creditors.
| A. |
Defense of motion to dismiss |
$200 |
| B. |
Motion to modify and order (including motion for moratorium) |
$350 |
| C. |
Substitution of collateral |
$450 |
| D. |
Prosecution or defense of motion for relief from stay or co-debtor
stay and order
|
$450 |
| E. |
Motion for authority to sell property and order |
$450 |
-
These standard base and non-base fees are intended as a convention to
reduce expense to the parties. Counsel may, alternatively, apply for
non-base fees on a time and expenses basis in accordance with Local Rule
2016 and § 330 of the Code. In cases
where counsel elects this procedure, it must be done at the beginning
of the case and with appropriate disclosure.
-
Fees Exceeding the Base Fee. Any fee retainer and/or agreement
for payment taken by an attorney for a Chapter 13 debtor in an amount
which is in excess of the base fee shall be applied for by the debtor's
attorney within 60 days after the first creditors' meeting pursuant to
§ 341 of the Code. As to any amounts which the attorney continues
to hold as a retainer after that time, application for services
rendered in the interim shall be made every six months until all the
retainer is earned and paid.
-
Disclosure of Fee. Every attorney for a Chapter 13 debtor must
disclose to the debtor the procedures applicable to awards of attorneys
fees in Chapter 13 cases in this District. This disclosure shall be
made by reviewing with the debtor the "Disclosure to Debtor(s) of
Attorneys Fee Procedures for Chapter 13 Cases in the United States
Bankruptcy Court for the Western District of North Carolina," Local
Form 3, which is annexed to these Local Bankruptcy Rules. This form
must be fully completed, executed as indicated, and the original must
be filed with the Chapter 13 petition of that debtor.
In addition, originally executed copies of the
disclosure must be maintained by the attorney for a period of four (4)
years after the closing of the case, and upon request of the Court, the
filer must provide original documents for review.
-
Payment of Attorneys Fees in Chapter 13 Cases.
-
An attorney may accept an amount of compensation in advance of the
filing of the Chapter 13 case up to the maximum of $1,600 base fee on
the following conditions:
-
All court filing fees must be paid in full at the time the case is
filed (no installment fees to be applied for), and
-
The debtor(s) must appear at the time first set for the § 341
meeting with no less than one full month's Plan payment to turn
over to the trustee.
-
If an attorney accepts a retainer and either (1)(A) or (1)(B) above is
not met, the attorney must pay the delinquent fee and/or the Chapter
13 trustee's new case processing charge from the retainer held.
Local Rule 2016-2 Trustee Search Fee
Chapter 13 Trustee Search Fee. Chapter 13 standing trustees are
authorized to impose charges not to exceed the amounts set forth in the
Judicial Conference Bankruptcy Court fee schedule, 28 U.S.C. §
1930(b), in reimbursement of their reasonable and necessary costs incurred
in conducting case record searches, photocopying documents, or performing
any similar services at the request of a party in interest.
Local Rule 2090-1 Representation of Business Entities
-
Representation Required. All partnerships, corporations,
trusts, associations, and other business
entities that appear in cases or proceedings before this Court, not
including § 341 first meetings of creditors, must be represented
by a lawyer duly admitted to practice before this Court. For purposes
of this Local Rule, an appearance shall be defined as preparing and
filing papers, such as complaints and answers, petitions, applications,
and motions; questioning witnesses in proceedings before the Court;
and pursuing any action in this Court.
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Sole Proprietorships Exempt. This Rule does not apply to an
individual conducting business as a sole proprietorship.
Local Rule 2090-2 Special Admissions
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Special Admission in this District. Litigants appearing at a
hearing, except counsel representing governmental agencies and parties
appearing pro se, must be represented by at least one member of
the bar of this Court or by an attorney admitted to practice by this
Court pursuant to the Local Rule for Procedure and Practice 83.1 of
the United States District Court for the Western District of North
Carolina and this Local Rule. Any lawyer who is a member in good
standing of the Bar of the Supreme Court of the United States or the
Bar of the Supreme Court of any state in the United States, may, in
the discretion of the judges of this Court, be permitted to appear in
a particular case. If special admission is granted, and if a member
of the bar of this Court is not associated, the specially admitted
attorney and that attorney's client shall be deemed to have consented
that service of all pleadings and notices may be made upon a deputy
clerk in the appropriate division of this Court as process agent. The
Court encourages out-of-state attorneys to associate a member of the
bar of this Court in all cases, but will not require such association
where the amount in controversy or the importance of the case do not
appear to justify double employment of counsel. Special admission will
be the exception and not the rule, and no out-of-state counsel will be
permitted to practice frequently or regularly in this Court without
the association of local counsel. Special admission granted by this
Court constitutes admission to the United States District Court for the
Western District of North Carolina.
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Filing Papers by Attorneys not Admitted in this District. Where
justice requires, the authorized deputy clerks in Asheville and
Charlotte may permit the filing of papers at the request of
out-of-state counsel; provided, however, that the further participation
of out-of-state counsel shall be governed as provided in this Local Rule.
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Fee for Special Admission in this District. All counsel, except
those representing governmental agencies, must pay a fee as assessed by
the District Court for each special admission or whenever Pro Hac
Vice admission is granted.
Local Rule 2091-1 Extent of an Attorney's Duty to Represent
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Duty to Represent Debtor. Any attorney who files a bankruptcy
petition for or on behalf of a debtor shall remain the responsible
attorney of record for all purposes, including the representation of
the debtor in all matters that arise in the case and conversion to
another Chapter.
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Relief from Duty to Represent. An attorney is automatically
deemed relieved of the duty to represent the debtor when the debtor's
case is closed. Alternatively, an attorney may be relieved of the duty
to represent the debtor only upon motion, and after notice and a
hearing, on the order of this Court.
PART III
CLAIMS AND DISTRIBUTION TO CREDITORS AND EQUITY INTEREST HOLDERS;
PLANS
Local Rule 3001-1 Claims and Equity Security Interests
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Where to File a Claim.
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In Chapter 7 and Chapter 11 cases, all claims shall be filed with the
Clerk of Court in accordance with Bankruptcy Rule 5005 and Local Rule
5005-1.
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In Chapter 13 cases, proofs of claim shall be filed directly with the
office of the standing trustee to whom the case is assigned. The
address of the proper standing trustee will be shown on the notice of
creditors' meeting. Claims will be dated and stamped as received as
of the date they arrive in the trustee's office, and the claim shall
be deemed filed with the Court as of that date.
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Time for Filing Claims in a Chapter 11 Case. In a Chapter 11 case,
a proof of claim shall be filed within 90 days after the date first set
for the § 341 meeting of creditors, except as provided in
Bankruptcy Rule 3002(c)(1) or otherwise
extended by the Court.
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Filing of Claims by Debtor or Trustee. In Chapter 13 cases, if a
creditor fails to file a proof of claim on or before the first date set
for the § 341 meeting of creditors, the debtor or trustee may do
so in the name of the creditor. If the debtor or trustee does file a
proof on behalf of a creditor, the creditor may file an amended proof
pursuant to Bankruptcy Rule 3002 or
Bankruptcy Rule 3003(c), which shall
supercede the proof filed by the debtor or trustee.
Local Rule 3015-1 Dismissal or Conversion of Chapter 13 Cases
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Funds Held by the Trustee at Dismissal or Conversion. In the
event of the dismissal or conversion of a Chapter 13 case, the trustee
shall dispose of any debtor funds in the trustee's custody as follows:
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Cases Dismissed or Converted Prior to Confirmation. The
trustee shall refund any funds to the debtor after deducting
administrative claims previously allowed by the Court.
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Cases Dismissed After Confirmation. The trustee shall
disburse any funds received prior to service of the order of
dismissal pursuant to the terms of the confirmed plan. Any funds
received by the trustee subsequent to service of the order of
dismissal shall be refunded to the debtor in care of the debtor's
attorney.
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Cases Converted After Confirmation. The trustee shall
refund balances on hand of $1,000 or less to the debtor in care of
the debtor's attorney. Balances of more than $1,000 shall be sent
to the trustee serving in the converted case.
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Trustee's Right to Seek Court Determination. The provisions of
paragraph (a) above are subject to the trustee's right to seek a Court
determination of the disposition of funds in any particular case when
in the trustee's judgment such a determination is appropriate.
Local Rule 3016-1 Motion to Extend Exclusivity Period
Hearing Required. In all Chapter 11 cases, motions to extend the
exclusivity period that are filed pursuant to § 1121(d) of the Code
may not be filed on a no-protest basis pursuant to Local Rule
9013-1(e), and a Court hearing will be required for
all such motions.
Local Rule 3018-1 Chapter 11 Balloting
Filing with Clerk. Unless otherwise ordered, all original ballots
must be filed with the
Clerk of Court by the voting parties. Any proponent of a plan shall file a
summary of ballots as they appear in the Court record. The summary shall
be filed with the Clerk prior to the hearing on confirmation.
PART IV
THE DEBTOR: DUTIES AND BENEFITS
Local Rule 4001-1 Motions for Relief from Stay
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Motion Requirements. In a motion for relief from stay, the following
shall be included:
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The amount of the movant's debt;
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Brief description of security interest, if applicable, with copies of
documents evidencing the security interest and perfection;
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Description of the property encumbered by the stay, including serial
number(s), legal description, physical address,
etc . . . Failure to
adequately describe the property may result in denial of the motion,
even absent objection;
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Basis for relief, i.e., property not necessary for reorganization,
debtor has no equity, property is not property of the estate
, or, if brought for cause,
specific facts constituting cause;
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Valuation of property and basis and date of valuation, e.g.,
appraisal, blue book, etc., including applicable copies;
and
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In Chapter 13 cases, when a creditor,
whose claim is secured by an interest in real property
or personal property
that is the debtor's principal residence, is seeking relief from stay
on the grounds of postpetition default by the debtor, the creditor
must include with the motion for relief from stay a statement of all
postpetition account activity that is readable, reasonably
understandable, and stated in plain English.
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Application of § 362(e) of the Code. If a movant seeks
application of the provisions of § 362(e) of the Code, the movant
must so state both in the caption of its motion and in the body of the
motion. Otherwise, the movant will be deemed to have consented to a
waiver of the application of §362(e) of the Code, and the stay
shall remain effective notwithstanding the expiration of the 30-day
period. Similarly, if the movant seeks application of § 362(e) but
selects a hearing date outside the 30-day period of §362(e), the
movant will be deemed to have consented to the waiver of the application
of § 362(e), and the stay shall remain effective at least until the
Court considers the matter at the hearing, and thereafter upon such
terms as the Court orders. If the movant seeks application of
§ 362(e) and so notifies the Court and the adverse party, the Court
will schedule the initial hearing within the applicable 30-day period.
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Standing Modification of the Automatic Stay. The automatic stay
provided in § 362(a) of the Code is modified in bankruptcy cases so
as to authorize the Internal Revenue Service to:
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Make income tax refunds, in the ordinary course of business, directly
to debtors, unless otherwise ordered by the Court or otherwise
instructed by the trustee.
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Offset against any prepetition refund due a debtor any prepetition tax
obligation owing by the debtor to the United States government.
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Proposed Orders. Proposed orders shall include a description of
the property encumbered by the stay as described in Local Rule
4001-1(a)(3).
Local Rule 4002-1 Debtor Duties
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Debtor's Duties in General. The duties of the debtor(s) filing a
petition pursuant to the United States Bankruptcy Code shall
specifically include
those listed in this Local Rule. These duties apply in addition to
those imposed by law or regulation.
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Interpreters. Should a
debtor require interpreters, the following provisions apply:
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Language Interpreters. The debtor must provide a competent
language interpreter at any § 341 first meeting of creditors in
which the debtor will require language interpretation. If, in the
trustee or the Bankruptcy Administrator's discretion, a disinterested
language interpreter is required, the trustee or Bankruptcy
Administrator will continue the meeting of creditors. The debtor must
provide a qualified, disinterested language interpreter at the
continued meeting of creditors.
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Interpreters for Hearing Impaired. The Bankruptcy Administrator
is required to provide interpretation services for hearing impaired
interpretation at first meetings of creditors. The debtor's attorney
should contact the Bankruptcy Administrator's Office at least five
business days prior to the date of
the first meeting to arrange for hearing impaired
interpretation.
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Oath. The following oath shall be administered to the language
or hearing impaired interpreter: Do you solemnly swear 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, so help you God?
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Pro Se Debtors. A debtor filing a petition or pleading
with the Court pro se must disclose to the Court the identity of
any person providing advice or assistance in the preparation of said
document, including the name, address, telephone number, and, if
applicable, North Carolina Bar number.
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Duties of Chapter 7 Debtor. A
debtor filing a petition requesting relief under Chapter 7 of
the Code shall comply with the following:
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Compliance with Trustee's Requests. The debtor shall comply
with any request by the trustee for turnover of property or production
of documents within 15 days of the date of the request.
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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:
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List the assets in need of attention including the nature and value;
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Append a short explanation of the assets' exact location;
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List the name and address of the custodian thereof;
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State the protection being given such property and the amount and
duration of fire and theft insurance, if any; and
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List whether the asset is subject to any environmental hazards or
concerns.
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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 Bankruptcy Administrator to
ascertain the name of the trustee assigned to the case. If no trustee
has been assigned, the attorney shall notify the Bankruptcy
Administrator of the necessity for immediate assignment. Upon
determining the assigned trustee, the attorney shall then contact the
trustee and notify the trustee of the need for immediate attention and
of the items listed in paragraph (d)(2) above.
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Duties of Chapter 11 Debtor. Unless otherwise ordered by the
Court after proper notice and hearing, Chapter 11 debtors in possession
shall comply with the following requirements:
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Monthly Reports. In accordance with 11
U.S.C. § 704(8) and 11 U.S.C. § 1107(a) and Bankruptcy Rule
2015, the debtor in possession or, if applicable, the trustee in a
Chapter 11 case, shall file with the Clerk, not later than the last
day of each month, the original and one copy of a written financial
report for the preceding month in a format approved by the Bankruptcy
Administrator. The original report must be signed by the debtor or,
if applicable, the trustee, and counsel for the debtor or trustee, as
applicable. The first report shall include the period between the
date the petition was filed and the last day of the calendar month and
shall be due within 30 days after entry of the Order for Relief. All
subsequent reports shall be for the entire calendar month and shall be
due within 30 days following the entry of the Order for Relief.
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Quarterly Fees. Quarterly fees are due in all Chapter 11 cases
filed on or after April 1, 2002. Information concerning these fees
may be obtained from the Court's internet site,
www.ncwb.uscourts.gov, or by contacting the Office of
the Bankruptcy Administrator. These fees are due to the Bankruptcy
Administrator and must be paid not later than the last day of the
month immediately following the end of the calendar quarter for which
they are due in accordance with 28 U.S.C. § 1930(a)(6).
Payments must be mailed so as to ensure that they are received by the
due date. Payment shall be made to: Clerk, U.S. Bankruptcy Court,
with payment verification made to the Bankruptcy Administrator. All
plans of reorganization must provide for the payment of quarterly fees
until the case is closed, dismissed, or converted.
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Insurance. The debtor must provide to the Bankruptcy
Administrator within 10 days of the date of the filing date, copies of
the declaration pages for all insurance policies maintained by the
debtor. At all times, the debtor must maintain adequate hazard and
liability insurance on all of the debtor's property as well as any
other insurance required by applicable law or court order, i.e.,
worker's compensation insurance, and dram shop insurance. The debtor
must, within two business days, notify the Bankruptcy Administrator of
any changes in the terms of the policy(s), including cancellation or
non-renewal.
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Bank Accounts. The debtor's pre-petition bank accounts
should be closed and new post-petition bank accounts opened as
of the date of the filing of the petition. At a minimum, the
debtor will maintain a general or operating account and a tax
deposit account. The signature cards for the new accounts shall
clearly indicate that the debtor is a Chapter 11 Debtor in
Possession. The debtor shall use only federally insured banking
institutions and shall immediately inform the Bankruptcy Administrator
if the total deposits in any one bank at any time exceed the FDIC
coverage of $100,000. Upon notification, the Bankruptcy Administrator
shall ensure the posting of collateral or bonds to secure
amounts exceeding the FDIC coverage.
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Books, Records, and Inspections. The debtor shall
close its pre-petition books and records and open new books and
records as of the petition filing date. The debtor shall permit
the Bankruptcy Administrator, or designee, reasonable inspection
of its business premises, properties, books, and records.
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Taxes. The debtor shall segregate and hold in a
separate bank account all taxes deducted and withheld
from employees or monies collected under any law of the
United States, or any state or subdivision thereof, and
the State of North Carolina. The debtor shall timely
pay all post-petition taxes. Evidence of payment of
taxes shall be included in the Monthly Status Report
for the period paid. The debtor shall file all delinquent
tax returns within 90 days of the filing date. The debtor
shall file all post-petition returns timely. The Internal
Revenue Service and the North Carolina Department of Revenue
are authorized to contact the debtor to verify the deposit
and payment of all taxes and the filing of all tax returns.
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Compensation and Compensation Plans. Without prior
court order, the debtor may not increase compensation to
management or insiders or modify compensation plans.
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Post Confirmation. Following the entry of an order
confirming a plan of reorganization, the debtor,
pursuant to Bankruptcy
Rule 2015(a) ,
shall continue to file monthly operating reports until such time as
the case is closed by the Clerk. These reports shall be in a
form satisfactory to the Bankruptcy Administrator. The original
and one copy of the report shall be filed with the Clerk. The debtor
shall state in each report any action taken toward consummation of
the plan. The debtor shall also, upon substantial
consummation of the confirmed plan, as that term is defined in 11 U.S.C.
§ 1101(2), 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 sixty
(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.
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Duties of Chapter 13 Debtor. The debtor filing a petition requesting relief under
Chapter 13 of the Code shall comply with the following:
- Disposition of Non-Exempt Property. The debtor shall not dispose of
non-exempt property having a fair market value of more than $2,500 by sale
or otherwise without prior approval of the Court. This shall be a cumulative,
rather than a per-transaction, dollar limitation over the life of the plan.
- Obtaining Credit. The trustee may approve debtor requests to
incur credit not to exceed $15,000 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.
- Proof of Physical Damage Insurance Coverage.
At the § 341 meeting of creditors, the debtor shall provide
written evidence of the maintenance of physical damage insurance
coverage on any property subject to valid lien claims where the
underlying security agreement requires such insurance.
- Delinquent Tax Returns. The debtor shall have 90 days after filing
in which to file delinquent tax returns.
Local Rule 4003-1 Exemption Election
- Content of Exemption Election. The exemption election must comply with the
Official Bankruptcy Form and shall include the following:
- Property Description. Each item of property claimed as exempt,
except clothing, shall be specifically and individually listed. Generic
terms such as "household goods," "real property," and "jewelry,"
are not adequate descriptions of
property. Real property shall be described by at least the full street address thereof, including the
county and state. Vehicles shall be described by at least the make, model,
year, and body type thereof. Vehicle descriptions should also include the
approximate accumulated mileage as of the petition filing date, any optional
equipment, and any other factors which should be considered by the Court in
determining the value of the asset.
- Statute or Law Creating Exemption. Each item of property
claimed as exempt shall be accompanied by a reference to the specific
law providing for the exemption, including applicable subparagraphs of statutes.
- Time Limit for Amending or Objecting to Exemption Election. The debtor shall
have up to and including the day of the §341 meeting of creditors in which to
amend the exemption election. An amendment to the exemption election announced at the
§ 341 meeting of creditors and filed with the Court in writing no later than 10
business days thereafter, shall be deemed filed within the time set forth above. Any
subsequent amendments shall be allowed only with permission of the Court.
Local Rule 4004-1 Certificates of Discharge
Issuance. The Clerk will issue Certificates of Discharge upon the tendering
of a completed Local Form 5.
Local Rule 4071-1 Limitations on Creditor Contact with Debtors
- Compliance with Non-Bankruptcy Law. Any creditor contact with debtors
must also comply with any applicable non-bankruptcy law.
- Creditor's Responses to Debtors. A creditor may respond
freely to any inquiry from a debtor on any subject matter.
PART V
COURTS AND CLERKS
Local Rule 5001-1 Clerk - Office Hours
- Charlotte Office. The Charlotte Clerk's Office shall be
open to the public from 8:30 a.m. until 4:30 p.m. on all days
except Saturdays, Sundays, and the legal holidays listed in the
FED.R.CIV.P. 6(a), or as otherwise directed.
- Asheville Office. The Asheville Division Clerk's
Office shall be open to the public during the same operating
hours as the Charlotte Office; however, this Office shall be
closed daily from 12:30 p.m. until 1:30 p.m.
- Access to Electronic Filing System. Documents may be
filed at any time through the Court's official CM/ECF filing
system by an authorized filer.
Local Rule 5001-2 Clerk's Entries
- Orders Entered by Clerk. Pursuant to the provisions of
FED.R.CIV.P. 77(c), the Clerk of Court and designated deputy
clerks at the Charlotte and Asheville Offices are authorized
to grant and enter the following orders and judgments without further direction
by the Court:
- Judgments of default as provided for in FED.R.CIV.P. 55(a)
and 55(b)1, and Bankruptcy Rule 7055.
- Entry of ex parte order granting an additional 30 days within
which to answer or respond to a Complaint pursuant to Bankruptcy Rule 7012.
- Suspension, Alteration, or Rescission by the Court. Any such action
may be suspended, altered or rescinded by the Court for good cause shown.
Local Rule 5005-1 Electronic Case Filing
- Electronic Filing. The Court authorizes registered users to
file petitions, motions, and submit documents to the Court through
the use of the official Case Management/ Electronic Case Filing System
(CM/ECF).
- Attorney Signatures. The electronic filing of a petition,
pleading, motion, claim, or other papers by an attorney who is a
registered participant in CM/ECF shall constitute the
signature of that attorney under Bankruptcy Rule 9011.
- Passwords. No attorney shall knowingly permit or cause to
permit his/her password to be utilized by anyone other than an
authorized employee of his/her law firm.
- Official Court Record. CM/ECF shall constitute the official Court
record in electronic form. The electronic filing of a pleading
or other paper in accordance with CM/ECF procedures
shall constitute entry of the same
on the docket kept by the Clerk pursuant to Bankruptcy Rule 5003.
The Court will not maintain case files with the following exceptions:
- Documents filed under seal.
- Pro se debtors' petitions, lists, schedules,
statements, amendments, pleadings, affidavits, and other
documents which contain the signature of a pro se debtor.
- Notice and Service. If the recipient of notice or
service is a registered participant in CM/ECF,
service by electronic notification shall be the equivalent of
service of the pleading or other papers by first class mail,
postage pre-paid pursuant to Bankruptcy Rules 9006(f) and 9022,
and FED.R.CIV.P. 5(b), 6(e) and 77(d). Participation in
CM/ECF and receipt of a password shall constitute
agreement to receive notice and service electronically.
- Orders. Any order signed electronically by a
judge shall have the same force and effect as if the judge
had signed a paper copy of the order.
- Original Documents. When an attorney files a
pleading (electronically or non-electronically) with the
debtor(s)' original signature or any notarized affidavit,
the attorney will thereafter maintain the original document for a period ending four
years after the case is closed. Original documents so maintained
shall be presented to the Court upon request.
- Electronic Filings and Paper Documents. In the event a
paper petition, pleading, motion, claim, or other paper document
is filed contemporaneously with an electronic version which
contains the same data, the data received electronically will
supersede the paper version.
Local Rule 5005-2 Return of Originals/Copies
- Return of Documents. Any person requesting return of
documents must submit a stamped, self-addressed envelope.
- Paper Size. The Judicial Conference of the United States
has adopted 8 ½ x 11 inch letter size paper as the standard for use
throughout the federal judiciary. All documents and other papers
submitted to this Court must conform to this standard.
- Attachments. Any attachments to a document must conform to the standard paper size unless
advance permission is sought to submit oversized materials.
- Two-sided Documents. No document submitted
to the Court shall have text on both sides of the paper.
Local Rule 5009-1 Trustee's Duty to File Final Report
Final Report for Dismissed or Converted Cases. In the event a Chapter 7 or 11
case is dismissed or converted to a case under a different chapter of the Code,
the trustee in the original case will not be required to file a Final Report unless funds or assets are received by the
trustee.
Local Rule 5011-1 Abstention
- Adversary Proceedings. In adversary proceedings, any motion for
abstention pursuant to 28 U.S.C. § 1334(c) shall be filed within 30 days
after the service of the summons, complaint, or other pleading to which it is
addressed.
- Contested Matters. In contested matters, any motion for
abstention pursuant to 28 U.S.C. § 1334(c) shall be filed no later than
the time allowed for response or objection.
- Where to File. Whether the requested abstention is mandatory
or discretionary, motions to abstain pursuant to 28 U.S.C. § 1334(c),
shall
be directed to the Bankruptcy Court. However, motions to abstain
in cases involving claims within 28 U.S.C. § 157(b)(5) shall be directed to the United States District Court.
PART VI
COLLECTION AND LIQUIDATION OF THE ESTATE
Local Rule 6005-1 Auctioneers
- Employment Without Application to the Court. In a Chapter 7 case
where the gross sales proceeds of an auction conducted pursuant to this
rule are reasonably anticipated by the trustee to be less than $50,000,
the trustee may elect to employ an auctioneer without application to the
Court and shall be authorized to pay the
auctioneer a commission of up to 15 percent of gross sales of the auction.
- Conditions Precedent to Employment. The trustee may employ and
compensate an auctioneer without application to the Court if the following conditions are satisfied
in advance:
- The auctioneer must be licensed and in good standing with the
North Carolina Auctioneer's Commission consistent with N.C.
GEN. STAT. § 85-B-3 and 4;
- The auctioneer must execute and deliver to the trustee the
same affidavit that would be required in support of an application
for employment of auctioneer otherwise filed with the Court;
and
- The affidavit executed by the auctioneer must affirmatively
set out compliance with the conditions above.
- Auctioneer's Report of Sale. An auctioneer employed to
conduct a sale on behalf of the bankruptcy estate shall submit a
report of sale to the trustee within 20 days following the conclusion
of any sale in the format as prescribed by the
Bankruptcy Administrator.
- Trustee's Report of Sale. The trustee shall prepare a report
of sale that includes fees paid to the auctioneer,
and it shall be accompanied by the auctioneer's affidavit. The trustee
shall file such report of sale with the Clerk and serve it upon the Bankruptcy Administrator.
PART VII
ADVERSARY PROCEEDINGS
Local Rule 7003-1 Adversary Proceeding Cover Sheet
Cover Sheet. All complaints initiating adversary proceedings in
bankruptcy cases shall be accompanied by an Adversary Proceeding Cover
Sheet, Official Bankruptcy Form No. B 104.
Local Rule 7007-1 Motion Practice in Adversary Proceedings
- General Requirements. All motions in adversary proceedings
shall state with particularity the facts supporting the motion and
shall state the relief requested. Any brief or memorandum in support
of the motion shall state the relief requested.
- Responses to Motions. Any party in interest may file
a written response to any motion within 15 days after service
of the motion unless otherwise ordered by the Court
, or prescribed by the applicable Rules of
Bankruptcy Procedure.
The response may be a memorandum and may be accompanied by affidavits
or other supporting documents. In the event no response is filed,
the Court may proceed to rule on the motion without further notice
or opportunity to be heard.
- Hearings on Motions. Hearings shall be scheduled
so that opposing counsel shall have an opportunity to respond
to the motion in accordance with this Local Rule. Each motion
shall be accompanied by a separate notice of the time, date, and
place of the hearing on the motion in accordance with Local
Rule 9013-1.
Local Rule 7016-1 Pretrial Procedures
- Pretrial Orders. In adversary proceedings, the Court will
enter an Initial Pretrial Order setting certain requirements and
deadlines. At the conclusion of the period for discovery, the Court
will send a Notice of Pre-Trial Conference which schedules a pre-trial
conference between the Court and the parties. If a date is selected for
trial at the pre-trial conference, the court will enter a Final Pre-Trial
Order and Notice of Trial which will require supplementation of disclosure
and discovery, exchange of exhibits, identification of witnesses, and which
will set a time certain for trial. After entry of that Order, continuances
will be granted only for compelling circumstances. If a date is not selected
for trial at the pre-trial conference, the court will continue the matter so
the parties can select a trial date at the continued hearing.
Local Rule 7016-2 Trials
- Opening Statements. At the beginning of the trial, each party,
beginning with the party having the burden of proof on the first issue,
may, without argument and in such reasonable time as the Court allows,
state to the Court the following:
- The substance of the claim, counterclaim, cross claim,
or defense; and
- What counsel contends the evidence will show.
Parties not having the burden of proof on the first issue may elect to
make an opening statement immediately prior to presenting evidence,
rather than at the beginning of the trial.
- Witnesses. Counsel may not release a person from a
subpoena without notice to opposing counsel and leave of Court.
A party objecting to the release of a witness shall bear all costs
incident to the witness which arise subsequent to the request for
release. The Court, in its discretion and in the interest of
justice, may permit a party to call and examine a witness not
listed in accordance with the Final Pretrial
Order.
- Exhibits. Exhibits shall be presented as follows:
- All exhibits shall be marked in advance with numbers.
- Copies of all exhibits, properly bound, shall be provided
to the Court at the beginning of the trial. Copies of exhibits
shall be provided to opposing counsel prior to the trial
consistent with the Final Pretrial Order or other Order
of the Court.
- The original exhibit shall bear a number. After receipt
into evidence, it shall remain in the custody of the courtroom
deputy, except when being used by a witness.
- Copies of all exhibits shall bear the like number of the exhibit.
- At the discretion of the Court, exhibits will be returned to the
tendering party upon the conclusion of the trial. It is the
responsibility of the retrieving attorney and/or law firm to
maintain the referenced exhibits for purposes of appeal.
- Closing Argument. The Court will set the times for closing
argument after consultation with parties. Unless otherwise ordered
by the Court, the party with the burden of proof shall open and
close the arguments. The opening argument may be waived.
Local Rule 7026-1 Discovery - General
- Procedures for Handling Discovery Materials. The following materials
shall not be filed with the Clerk except by order of the Court or when used
in a proceeding:
- Transcripts of depositions upon oral examination and interrogatories;
- Requests for production of documents;
- Requests for admissions; and
- Answers and responses thereto.
- Service of Discovery Materials. All such papers must be served
on other counsel or parties entitled to service of papers filed with the
Clerk of Court.
- Preservation and Delivery. The party taking a deposition or
obtaining any material through discovery is responsible for its
preservation and delivery to the Court if needed or so ordered.
Local Rule 7041-1 Dismissal of Actions for Lack of Prosecution
- When Action May be Dismissed. Except where a complaint objecting
to a discharge has been filed, an adversary proceeding may be dismissed by the
Court for lack of prosecution as follows:
- Where no service of process has been made and certified to the
Court within 30 days after the filing of the complaint; or
- Where no responsive pleadings have been filed and plaintiff
has not moved for entry of default within 30 days after the
time for filing responsive pleadings has expired.
- Dismissal Without Prejudice. Dismissal pursuant to this
Local Rule shall be without prejudice unless the delay has resulted
in prejudice to an opposing party.
Local Rule 7067-1 Deposit and Investment of Funds Held by Clerk
- Clerk's Review of Proposed Orders. Parties seeking a Court
Order to have the Clerk of Court deposit funds in an interest-bearing
account shall personally submit the proposed Order to the Clerk or
financial deputy who will inspect the proposed Order for proper form
and content and compliance with this Local Rule prior to the proposed
Order being submitted to the judge for whom the Order was prepared.
- Required Provisions. Any order obtained by a party or
parties in an action that directs the Clerk to invest, in an
interest-bearing account or instrument, funds deposited in the
registry of the Court pursuant to 28 U.S.C. § 2041 shall include the following:
- The amount to be invested;
- The name of the depository approved by the Treasurer of the
United States as a depository in which funds may be deposited;
- A designation of the type of account or instrument in which
the funds shall be invested; and
- Wording which directs the Clerk to deduct from the income
earned on the investment the fee authorized by law, not
exceeding that authorized by the Judicial Conference of the
United States and set by the Director of the Administrative
Office whenever such income becomes available for deduction
in the investment so held and without further order of the Court.
- Clerk's Retention of Funds. In the event that a depository intended
by the Court to receive registry funds is not able to pledge sufficient
collateral for receipt of those funds immediately upon the Court's receipt
of the said funds, the Clerk may, in the Clerk's discretion, temporarily
retain such funds or direct the party tendering such funds to temporarily
retain them as necessary to arrange for their deposit in an interest-bearing
registry account.
PART VIII
APPEALS TO DISTRICT COURT
RESERVED
PART IX
GENERAL PROVISIONS
Local Rule 9006-1 Time Limits
- Shortening of Notice. The Court will consider shortening
prescribed notice for a hearing on contested matters upon the following conditions:
- The request to shorten notice must be made by written motion,
which states the reasons why shortened notice is necessary,
identifies the parties affected by the request, and describes
the service of notice of the request on interested parties; and
- The movant shall serve and provide notice of the motion
24 hours in advance of submitting an Order shortening notice.
Service and notice for the purpose of this Local Rule is
accomplished upon actual delivery of the motion to the office
of the party served, and service must be made upon the following
parties or their counsel:
- In a consumer case, the trustee, Bankruptcy
Administrator, debtor, and any party with a direct
interest in the matter; and
- In a non-consumer case, the debtor, the trustee,
Bankruptcy Administrator, examiner, and any
official committee.
- The movant may be excused from the
requirement of 24 hours advance notice of the request to shorten
notice upon demonstration of an emergency not of the movant's
own creation and the inability to notify affected parties in advance.
- Objection to Timing of Hearing on Shortened Notice. If, at or before
the hearing on the substantive motion, any opposing party objects to the
shortened notice, the moving party shall have the burden of demonstrating
good cause for the shortened notice or the Court shall grant a continuance.
- Adversary Proceedings-Extensions of Time to Respond to Complaint. Any
motion for an extension of time to respond to a Complaint shall be filed
prior to the expiration of the initial period for filing the Answer. The
responding party is entitled to one extension of up to 30 days from the
expiration of the original deadline. The Clerk may enter an ex parte order
granting an additional 30 days within which to answer or respond. Any other
extension shall be for cause shown with notice to the opposing party.
Local Rule 9013-1 Motion Practice
- Service on Trustee and Attorney for Debtor in Possession. Any and all filings,
except claims, in all proceedings and cases must be served on the trustee for the debtor,
including the standing Chapter 13 trustee, whether or not the trustee is a party to the
proceeding. In Chapter 11 cases, the attorney for the debtor in possession is to be
served in like manner.
- Service on Bankruptcy Administrator. Any and all filings, except
claims, in Chapter 7 and Chapter 11 cases must be served on the Bankruptcy
Administrator.
- Certificate of Service. Each pleading or document to be served on
any party shall have attached a certificate reflecting that service has been
made on that party. The certificate of service should appear on a separate
page from the pleading or document and should include the case caption at
the top.
- Hearings. The standard dates for setting motion hearings
are listed as follows:2
- Asheville and Bryson City Divisions.
- Regular term of Court is scheduled for the third full
week of each calendar month.
- Chambers days are scheduled on Tuesday and Wednesday
of the first full week of each calendar month.
- Chapter 13 and brief Chapter 7 matters are heard
on Tuesday.
- All other time consuming matters are heard on
Wednesday, and carry-over matters are heard on Thursday.
- Charlotte Division.
- Chapter 7 matters are heard on Thursday of the second
and fourth full week of the calendar month.
- Chapter 11 matters are heard as follows:
- Judge Hodges - Wednesday of the second and
fourth full week of the calendar month for
routine matters.
- Judge Whitley - Thursday of the first and
third full weeks of the calendar month.
- Chapter 13 motions are heard on Tuesday of the
second and fourth full weeks of the calendar month.
Chapter 13 dismissal hearings are held on Wednesday
of the second and fourth full weeks of the calendar
month. Time consuming matters must be scheduled
with prior court approval.
- Shelby Division.
- Regular term of Court is scheduled for Friday of
the fourth full week of the calendar month.
- Wilkesboro Division.
- Chapter 7, 13, and 11 matters are heard on
Thursday of the first full week of the calendar
month. Chambers days are scheduled on the Thursday
of the third full calendar week of the month.
Time consuming matters must be scheduled with
prior court approval.
- Exceptions. Deviations from the standard hearing
schedules may be required. The Court will post notices of
such changes on the Court's internet site,
www.ncwb.uscourts.gov. Motions may be set on other days
with advance permission of the Court. The Court may set
matters for hearing on its own initiative.
- Negative Notice Motions. A hearing on those motions
listed in (1) through (19) below may be noticed by "no protest"
notice upon notice to the parties as required by the Federal
Rules of Bankruptcy Procedure. The "no-protest" notice must
specifically advise any interested party that it must file
and serve any response, including an objection or request
for a hearing, within the 15-day period from service of the
notice, and that if no hearing is requested, the Court may
decide the matter on the record before it. A hearing shall
be requested by filing and serving a response, including an
objection and request for hearing within 15 days of the
date of the service of the notice. Any response must specify
exactly what motion is contested, and the response should
comply with this Local Rule. The following is the exclusive
list of motions which may be noticed by the use of "no protest"
notices and determined by the Court without a hearing unless a
hearing is specifically requested:
- Motions to use, sell, or lease property pursuant to
§363(b)(1) of the Code, except for sales of all or
substantially all of the assets in a Chapter 9, 11, or
13 case.
- Subject to the provisions of Bankruptcy Rule 6007, motions to
abandon property of the estate by the trustee or
debtor in possession pursuant to § 554 of the Code.
- Motions to assume executory contracts or leases
pursuant to § 365 of the Code, if the other
parties to the contract or lease stipulate to the
assumption.
- Motions pursuant to § 365 of the Code to
reject executory contracts or leases, except
collective bargaining agreements pursuant to
§ 1113 of the Code.
- Motions to avoid liens pursuant to §
522(f) of the Code.
- Motions for relief from stay pursuant to
§ 362 of the Code, except that notices
thereof shall state a specific hearing date
in the event a hearing is requested.
- Applications to pay compensation of professional
persons, including applications pursuant
to § 506(b) of the Code.
- Motions to change venue of a case or
proceeding to another division within this
District.
- Motions to obtain post-petition credit in
Chapter 13 cases.
- Objections to claims. The minimum time
period for notice of a hearing on an objection
to claim is 30 days. Fed.R.Bankr.P. 3007.
- Motions for relief from the co-debtor stay provided
in § 1201 and 1301 of the Code.
- Motions for approval of final report and
account of trustee, application for commission
and reimbursement of trustee expenses, application
to disburse funds of the estate, application to
abandon, and to discharge trustee.
- Motions to modify Chapter 13 plans without
a request for other relief.
- Motions or application to approve
security interest as set forth in Local Rule 2016-1(c).
- Motions for moratoriums in Chapter 13 cases.
- Motions to reopen bankruptcy cases.
- Motion to divide a Chapter 13 case as set
forth in Local Rule 1015-1.
- Motions to approve settlements.
- Motions to substitute counsel.
- Ex Parte Motions. The
motions listed below may be determined, at the discretion
of the Court, on an ex parte basis. Upon entry of an order
granting any relief requested on an ex parte basis, the
movant shall promptly thereafter provide notice in
accordance with the Federal Rules of Bankruptcy Procedure
of the entry of the order. In addition to advising of the
entry of the ex parte relief, such notice must specifically
advise any interested party that it may object to the relief
granted by filing a request for hearing or objection within
15 days of service of the notice. Any request or objection
must specify the relief that is contested and comply with the
provisions of this Local Rule. Any party shall be entitled to
request a hearing or to request that the Court reconsider any
ex parte relief upon a request filed within 15 days of service
of notice of the entry of ex parte relief.
- Motions that may be considered on an ex parte basis
pursuant to the Federal Rules of Bankruptcy Procedure,
including motions for enlargement of time pursuant to
Bankruptcy Rule 9006(b) and Local Rule 9006-1(c).
- Motions to reopen a case without additional relief
requested.
- Motions for an additional 30 days within which to
answer or respond to a Complaint pursuant to Bankruptcy
Rule 7012.
2 The first full week of the month is the first week of a calendar month that includes Monday.
Local Rule 9013-2 Briefs in Adversary Proceedings and Contested Matters
- Requirements. Briefs filed in adversary
proceedings or contested matters shall include:
- A concise statement of the facts of the case;
- All admissions and stipulations, if applicable;
- A summary of the points of law involved, citing
authorities in support thereof; and
- Any anticipated evidentiary problems, if applicable.
- Where to File. Briefs shall be filed with the
Clerk of Court. In addition, two full copies shall be
furnished to the judge assigned to the adversary proceeding
or contested matter.
- When to File. Briefs shall be filed with the
Clerk and received by opposing counsel at least three
business days prior to the hearing. Reply briefs, if
any, shall be filed with the Clerk and received by
opposing counsel at least one business day prior to
the hearing. A certificate of service must be filed
with the original brief verifying the required service.
Local Rule 9014-1 Contested Matters
- Requirements of Motion. A motion shall be accompanied by
all exhibits and attachments referred to in the motion, together
with a notice of motion and certification of service. The notice
of motion shall give notice of the filing of the motion and
allow for a specific response time to the motion.
- Time for Response. A response and accompanying
affidavits, if any, to any motion shall be filed within 15
days from the date of the service of motion, unless otherwise
ordered or provided in the Federal Rules of Bankruptcy Procedure
or these Local Rules.
- Service of Motion. The moving party shall serve
copies of the motion, together with all exhibits and attachments,
accompanied by a notice of motion in the manner prescribed in
Bankruptcy Rule 7004 contemporaneously with the filing of the
motion, notice
and certificate of service with the Court.
- Response. Any party against whom relief is sought may file a
written response to the motion. The response may be accompanied by
affidavits and other supporting documents and shall be served on all
interested parties and service shall be certified to the Court.
- Content of Response. All responses shall contain sufficient
information to reasonably disclose the basis for the party's position
and what specific issues are contested.
- Hearing on Motion. The provisions of Local
Rule 9013-1 apply to contested matters.
- Frivolous or Delaying Motions. Where the Court finds that
a motion is frivolous or filed for delay, costs may be assessed
against the party or counsel filing the motion. Any party filing
a request for a hearing shall appear at the hearing set by
the Court in support of the request or costs may be assessed.
- Disclosure Requirements Inapplicable. The disclosure
requirements imposed by Bankruptcy Rule 7026(a) are inapplicable
to contested matters.
Local Rule 9019-1 Settlements of Adversary Proceedings
- Filing of Documents. All
documents settling
adversary proceedings shall be filed in each adversary proceeding at issue
regardless of whether the adversary proceeding is pending or
closed.
- Service. All creditors and interested parties
in the base case and the adversary proceeding shall be
served with notice of settlement which should be accompanied
by a certificate of service. The notice of settlement and the
certificate of service should be filed in the adversary
proceeding.
- Notice. Settlements in adversary proceedings
may be noticed by the use of "no protest" notices as set
forth in Local Rule 9013-1.
Local Rule 9021-1 Tender of Judgments and Orders
- Orders and Judgments. When a proposed order or
judgment is submitted to the Clerk of Court, it shall be
accompanied by a properly completed Tender of Order or Judgment
Form, Local Form 2.
-
No Protest Orders. When applicable any "no protest" response periods
shall
pass before the proposed order or judgment is submitted to the Court.
- Consent Orders. Consent orders will not be
entered unless also signed by the trustee in the case.
- Orders submitted electronically. Orders submitted
electronically shall be served electronically upon the tendering
party.
Local Rule 9022-1 Certificate of Service for Orders
Service of Orders. When a submitting party receives a signed
order from the Court, the submitting party shall immediately serve a
copy of the order upon the appropriate parties.
Local Rule 9028-1 Disqualification of Judges
- Disqualification Procedure. Pursuant to 28
U.S.C. § 455 and Canon 3C of the Code of Conduct for United States
Judges, the Court has adopted procedures for administration of cases
in which a judge is disqualified for any reason. Any circumstance
that requires disqualification of the assigned judge should be
brought to the Court's attention at the earliest opportunity by
the filing and service of a motion seeking disqualification, except
that no motion is required with respect to events listed in
paragraph (c) of this Local Rule.
- Contested Matters. In any contested matter where the
Court is aware of an event requiring disqualification or is made
aware of such an event by any party, the Court will reassign the
matter to another judge. Where the disqualification applies only
to an isolated contested matter, reassignment of the base case is
not necessary. The Court will determine whether reassignment shall
apply to the contested matter only or to the entire case.
- Disqualification Events.
- Judge Hodges does not hear contested matters
involving Bank of America or its subsidiaries; and
- Judge Hodges does not hear contested matters
involving General Electric or its subsidiaries.
- Uncontested Settlements and Consent Orders. Approval of
uncontested settlements and agreed orders in cases which would
otherwise require disqualification will not require reassignment.
- Orders in Reassigned Matters. Orders in contested
matters that are reassigned may end up with the signature of
the disqualified judge even though the matter was reassigned
and heard by another judge.
In such event, the order is in fact the order of the
reassigned judge who determined the matter.
Local Rule 9035-1 Service of Papers on the Bankruptcy Administrator
- Service Required. All parties are required to serve
upon the Bankruptcy Administrator, by electronic service,
regular mail, hand delivery, overnight courier, or facsimile,
the papers specified in this Local Rule which
are filed with the Bankruptcy Court or an appellate court.
Appropriate certificates of service shall be filed.
- Documents that Must be Served:
- Chapter 11. All papers in Chapter 11
cases and in related adversary proceedings, except
exhibits to be used at trials or hearings.
- Bankruptcy Rule 2002 Requests. All papers in
cases and adversary proceedings in which the
Bankruptcy Administrator has filed a request
for notice pursuant to Bankruptcy Rule 2002(i).
- Appointment and Removal of Trustee or Examiner. All papers
related to the appointment or removal of a trustee or examiner.
- Compensation Applications. Applications for
compensation in all cases and adversary proceedings.
- Fraud or Criminal Activity. All papers in
any case or adversary proceeding in which fraud or
criminal activity is alleged on the part of any party.
- Chapter 7 Trustee Filings. All papers
filed in cases and adversary proceedings by Chapter
7 trustees, except as the Bankruptcy Administrator
may from time to time otherwise direct by notice to
the trustees on an ad hoc basis.
- Conversions. All orders relating to
conversions of a case to a case under another Chapter.
APPENDICES
APPENDIX A
Guidelines for Compensation and
Expense Reimbursement of Professionals
United States Bankruptcy Court
for the Western District of North Carolina
Introduction
Congress has established the standard for professional compensation
to be: "reasonable compensation for actual, necessary services" and
"reimbursement for actual, necessary expenses." 11 U.S.C. § 330(a)(1).
Congress has also established relevant factors for the courts to use in
determining the amount of reasonable compensation in § 330(a)(3) as follows:
- In determining the amount of reasonable compensation to be
awarded, the court shall consider the nature, the extent, and
the value of such services, taking into account all relevant
factors, including--
- the time spent on such services;
- the rates charged for such services;
- whether the services were necessary to the
administration of, or beneficial at the time at
which the service was rendered toward the completion
of, a case under this title;
- whether the services were performed within a
reasonable amount of time commensurate with the complexity,
importance, and nature of the problem, issue, or task addressed;
and
- whether the compensation is reasonable based on the
customary compensation charged by comparably skilled
practitioners in cases other than cases under this title.
11 U.S.C. § 330(a)(3).
The purpose of these Guidelines is to assist parties in providing
information necessary for the Court to make the determination of reasonable
compensation as outlined by Congress. These Guidelines are NOT requirements
for the Court or parties. Following these Guidelines should reduce, if not
eliminate, objections as to the form or format of the application. The
Guidelines are also intended to assist parties in addressing their respective
burdens of proof with respect to an application for compensation.
Narrative
A narrative explanation of the status of the case and the
professional's contribution to the estate is useful to the Court.
The degree of detail included in the narrative is in the discretion
of the applicant as a proponent/advocate of the application.
"Boilerplate" narrati |