Rules of Practice and Procedure

United States Bankruptcy Court for the Western District of North Carolina.



Effective 9/1/2004


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
  1. 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.


  2. 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.


  3. 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.


  4. Personal Identifiers. The Court may order the redaction of the following personal identifiers from documents filed with the Clerk:

    1. Name of Minor Child. The name of a minor child may be redacted; relationship to parent, gender, and age are acceptable substitutions.


    2. Dates of Birth. All but the year of the debtor's birth may be redacted.


    3. Financial Account Numbers. All but the last four digits of the debtor's financial account numbers may be redacted.


  5. 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
  1. 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).


  2. 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).


  3. 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.


  4. 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.


  5. 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
  1. 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:

    1. U.S. Bankruptcy Administrator
      402 W. Trade Street
      Suite 200
      Charlotte, NC 28202


    2. Securities & Exchange Commission
      Branch of Reorganization
      Suite 1000
      3475 Lennox Road, NE
      Atlanta, GA 30327-1323


    3. Internal Revenue Service
      320 Federal Place, Room 335
      Attn: Insolvency Unit
      Greensboro, NC 27401


  2. 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
  1. 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:

    1. All creditors listed in the petition.


    2. 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.


    3. 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.


    4. 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).


    5. 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.


    6. 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.


  2. 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

  1. 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.


  2. 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
  1. 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.


  2. 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.


  3. 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.


  4. Filing Fees.

    1. Upon the division of a joint case, the appropriate fee shall be paid pursuant to 11 U.S.C. § 1930.


    2. 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 DivisionClerk's OfficeCounties
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
  1. 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.


  2. 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.


  3. Method of Service. Service of all pleadings and orders shall be by first class mail or electronically.


  4. 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).


  5. 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:

    1. The debtor's plan;


    2. The debtor's disclosure statement as approved by the Court;


    3. The ballot;


    4. Notice regarding balloting and date for hearing on confirmation of the debtor's plan in a form approved by the Clerk's Office; and


    5. Any other notices as the Court or Clerk shall direct in a particular case in a form approved by the Clerk's Office.


  6. 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.


  7. 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
  1. Professional Fee Guidelines. Professionals seeking compensation are encouraged to refer to the Guidelines for Compensation which are attached hereto as Appendix A.


  2. Appointment of Professionals and Retainers.

    1. 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.


    2. 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.


  3. 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).


  4. 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.


  5. Compensation of Attorneys in Chapter 13 Cases.

    1. Subject to paragraph (f)(5) below, the amount of the fee in cases and with respect to pleadings filed electronically shall be as follows:

      1. The base fee in a Chapter 13 case is up to $1,600.


      2. 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.


      3. Where substitute counsel is retained by a Chapter 13 debtor, the attorney may collect a base fee of $450.


    2. 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.


  6. Definition of Base Fee Services.

    1. 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:

      1. Preparing and filing the petition, schedules, supplemental local forms, Chapter 13 plan and matrix;


      2. Circulating a copy of the Chapter 13 plan to all creditors and interested parties as reflected in the case matrix;


      3. Drafting and mailing letters to debtor(s) regarding attendance at the § 341 meeting, escrow of first money, and other responsibilities of the debtor(s);


      4. Preparing for and attending the § 341 meeting;


      5. Reviewing the confirmation order and periodic case status reports from the trustee;


      6. Reviewing the trustee's motion for allowance of claims;


      7. Maintaining custody and control of all case files with original documents for such periods as prescribed by law or court rule;


      8. Serving orders on all affected parties;


      9. Verifying the debtor(s) identity and social security number; and


      10. Defending objection(s) to confirmation of the debtor(s)' plan.


    2. 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):

      1. Preparing and filing proofs of claim on behalf of the debtor for a creditor;


      2. Drafting and filing of objections to scheduled and unscheduled proofs of claim;


      3. Assuming and rejecting unexpired leases and executory contracts;


      4. Preparing for and attending valuation hearings;


      5. Motions to transfer venue;


      6. Requesting copies of proofs of claim from the trustee;


      7. Conferring with the debtor(s) regarding obtaining postpetition credit, where no formal application is ultimately filed;


      8. Drafting motions to avoid liens pursuant to § 522(f) of the Code;


      9. Calculating plan payment modifications, where no formal motion is ultimately filed;


      10. Adding creditor addresses to the master mailing matrix pursuant to filed proofs of claim and notices of appearance or assignment of claims;


      11. Responding to written creditor contacts regarding plan terms, valuation of collateral, claim amounts, and the like;


      12. 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;


      13. 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;


      14. 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;


      15. 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;


      16. Drafting and mailing certified letters to creditors regarding matters related to alleged violations of the automatic stay;


      17. Drafting and mailing letters regarding voluntary turnover of property;


      18. Reviewing documents in relation to the use or sale of collateral when no formal application is ultimately filed; and


      19. 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.


    3. 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:

      1. Abandonment of property post-confirmation;


      2. Motion for moratorium;


      3. Motion for authority to sell property;


      4. Motion to modify plan;


      5. Motion to use cash collateral or to incur debt;


      6. Defense of motion for relief from stay or co-debtor stay;


      7. Defense of motion to dismiss filed after confirmation of the debtor(s) plan;


      8. Non-base fee requests;


      9. Stay violation litigation, including amounts paid as fees by the creditor or other party;


      10. Post-discharge injunction actions;


      11. Adversary proceedings;


      12. Wage garnishment orders;


      13. Turnover adversaries;


      14. Conversion to Chapter 7;


      15. Motions to substitute collateral; and


      16. Any other matter not covered by paragraph (f)(1) above.


    4. 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

    5. 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.


  7. 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.


  8. 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.


  9. Payment of Attorneys Fees in Chapter 13 Cases.

    1. 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:

      1. All court filing fees must be paid in full at the time the case is filed (no installment fees to be applied for), and


      2. 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.


    2. 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
  1. 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.


  2. Sole Proprietorships Exempt. This Rule does not apply to an individual conducting business as a sole proprietorship.










Local Rule 2090-2
Special Admissions
  1. 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.


  2. 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.


  3. 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
  1. 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.


  2. 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
  1. Where to File a Claim.

    1. 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.


    2. 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.


  2. 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.


  3. 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
  1. 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:

    1. 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.


    2. 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.


    3. 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.


  2. 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
  1. Motion Requirements. In a motion for relief from stay, the following shall be included:

    1. The amount of the movant's debt;


    2. Brief description of security interest, if applicable, with copies of documents evidencing the security interest and perfection;


    3. 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;


    4. 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;


    5. Valuation of property and basis and date of valuation, e.g., appraisal, blue book, etc., including applicable copies; and


    6. 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.


  2. 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.


  3. 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:

    1. 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.


    2. Offset against any prepetition refund due a debtor any prepetition tax obligation owing by the debtor to the United States government.


  4. 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
  1. 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.


  2. Interpreters. Should a debtor require interpreters, the following provisions apply:

    1. 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.


    2. 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.


    3. 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?




  3. 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.


  4. Duties of Chapter 7 Debtor. A debtor filing a petition requesting relief under Chapter 7 of the Code shall comply with the following:

    1. 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.


    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:

      1. List the assets in need of attention including the nature and value;


      2. Append a short explanation of the assets' exact location;


      3. List the name and address of the custodian thereof;


      4. State the protection being given such property and the amount and duration of fire and theft insurance, if any; and


      5. List whether the asset is 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 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.


  5. 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:

    1. 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.


    2. 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.


    3. 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.


    4. 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.


    5. 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.


    6. 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.


    7. Compensation and Compensation Plans. Without prior court order, the debtor may not increase compensation to management or insiders or modify compensation plans.


    8. 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.




  6. 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. 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.


    2. 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.


    3. 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.


    4. Delinquent Tax Returns. The debtor shall have 90 days after filing in which to file delinquent tax returns.








Local Rule 4003-1
Exemption Election
  1. Content of Exemption Election. The exemption election must comply with the Official Bankruptcy Form and shall include the following:

    1. 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.


    2. 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.


  2. 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
  1. Compliance with Non-Bankruptcy Law. Any creditor contact with debtors must also comply with any applicable non-bankruptcy law.


  2. 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

  1. 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.


  2. 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.


  3. 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

  1. 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:

    1. Judgments of default as provided for in FED.R.CIV.P. 55(a) and 55(b)1, and Bankruptcy Rule 7055.


    2. Entry of ex parte order granting an additional 30 days within which to answer or respond to a Complaint pursuant to Bankruptcy Rule 7012.


  2. 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

  1. 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).


  2. 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.


  3. 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.


  4. 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:

    1. Documents filed under seal.


    2. Pro se debtors' petitions, lists, schedules, statements, amendments, pleadings, affidavits, and other documents which contain the signature of a pro se debtor.




  5. 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.


  6. 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.


  7. 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.


  8. 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

  1. Return of Documents. Any person requesting return of documents must submit a stamped, self-addressed envelope.


  2. 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.


  3. Attachments. Any attachments to a document must conform to the standard paper size unless advance permission is sought to submit oversized materials.


  4. 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

  1. 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.


  2. 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.


  3. 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

  1. 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.


  2. 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:

    1. 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;


    2. 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


    3. The affidavit executed by the auctioneer must affirmatively set out compliance with the conditions above.



  3. 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.


  4. 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

  1. 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.


  2. 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.


  3. 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

  1. 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

  1. 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:

    1. The substance of the claim, counterclaim, cross claim, or defense; and


    2. 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.


  2. 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.


  3. Exhibits. Exhibits shall be presented as follows:

    1. All exhibits shall be marked in advance with numbers.


    2. 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.


    3. 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.


    4. Copies of all exhibits shall bear the like number of the exhibit.


    5. 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.




  4. 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

  1. 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:
    1. Transcripts of depositions upon oral examination and interrogatories;


    2. Requests for production of documents;


    3. Requests for admissions; and


    4. Answers and responses thereto.




  2. 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.


  3. 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

  1. 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:

    1. Where no service of process has been made and certified to the Court within 30 days after the filing of the complaint; or


    2. 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.




  2. 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

  1. 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.


  2. 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:

    1. The amount to be invested;


    2. The name of the depository approved by the Treasurer of the United States as a depository in which funds may be deposited;


    3. A designation of the type of account or instrument in which the funds shall be invested; and


    4. 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.




  3. 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

  1. Shortening of Notice. The Court will consider shortening prescribed notice for a hearing on contested matters upon the following conditions:

    1. 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


    2. 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:

      1. In a consumer case, the trustee, Bankruptcy Administrator, debtor, and any party with a direct interest in the matter; and


      2. In a non-consumer case, the debtor, the trustee, Bankruptcy Administrator, examiner, and any official committee.




    3. 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.




  2. 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.


  3. 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

  1. 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.


  2. Service on Bankruptcy Administrator. Any and all filings, except claims, in Chapter 7 and Chapter 11 cases must be served on the Bankruptcy Administrator.


  3. 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.


  4. Hearings. The standard dates for setting motion hearings are listed as follows:2

    1. Asheville and Bryson City Divisions.

      1. Regular term of Court is scheduled for the third full week of each calendar month.


      2. Chambers days are scheduled on Tuesday and Wednesday of the first full week of each calendar month.


      3. Chapter 13 and brief Chapter 7 matters are heard on Tuesday.


      4. All other time consuming matters are heard on Wednesday, and carry-over matters are heard on Thursday.




    2. Charlotte Division.

      1. Chapter 7 matters are heard on Thursday of the second and fourth full week of the calendar month.


      2. Chapter 11 matters are heard as follows:

        1. Judge Hodges - Wednesday of the second and fourth full week of the calendar month for routine matters.


        2. Judge Whitley - Thursday of the first and third full weeks of the calendar month.




      3. 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.




    3. Shelby Division.

      • Regular term of Court is scheduled for Friday of the fourth full week of the calendar month.




    4. 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.




    5. 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.




  5. 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:

    1. 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.


    2. 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.


    3. 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.


    4. Motions pursuant to § 365 of the Code to reject executory contracts or leases, except collective bargaining agreements pursuant to § 1113 of the Code.


    5. Motions to avoid liens pursuant to § 522(f) of the Code.


    6. 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.


    7. Applications to pay compensation of professional persons, including applications pursuant to § 506(b) of the Code.


    8. Motions to change venue of a case or proceeding to another division within this District.


    9. Motions to obtain post-petition credit in Chapter 13 cases.


    10. 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.


    11. Motions for relief from the co-debtor stay provided in § 1201 and 1301 of the Code.


    12. 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.


    13. Motions to modify Chapter 13 plans without a request for other relief.


    14. Motions or application to approve security interest as set forth in Local Rule 2016-1(c).


    15. Motions for moratoriums in Chapter 13 cases.


    16. Motions to reopen bankruptcy cases.


    17. Motion to divide a Chapter 13 case as set forth in Local Rule 1015-1.


    18. Motions to approve settlements.


    19. Motions to substitute counsel.




  6. 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.

    1. 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).


    2. Motions to reopen a case without additional relief requested.


    3. 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

  1. Requirements. Briefs filed in adversary proceedings or contested matters shall include:

    1. A concise statement of the facts of the case;


    2. All admissions and stipulations, if applicable;


    3. A summary of the points of law involved, citing authorities in support thereof; and


    4. Any anticipated evidentiary problems, if applicable.




  2. 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.


  3. 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

  1. 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.


  2. 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.


  3. 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.


  4. 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.


  5. 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.


  6. Hearing on Motion. The provisions of Local Rule 9013-1 apply to contested matters.


  7. 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.


  8. 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

  1. 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.


  2. 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.


  3. 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

  1. 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.


  2. No Protest Orders. When applicable any "no protest" response periods shall pass before the proposed order or judgment is submitted to the Court.


  3. Consent Orders. Consent orders will not be entered unless also signed by the trustee in the case.


  4. 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

  1. 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.


  2. 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.


  3. Disqualification Events.

    1. Judge Hodges does not hear contested matters involving Bank of America or its subsidiaries; and


    2. Judge Hodges does not hear contested matters involving General Electric or its subsidiaries.




  4. Uncontested Settlements and Consent Orders. Approval of uncontested settlements and agreed orders in cases which would otherwise require disqualification will not require reassignment.


  5. 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

  1. 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.


  2. Documents that Must be Served:

    1. Chapter 11. All papers in Chapter 11 cases and in related adversary proceedings, except exhibits to be used at trials or hearings.


    2. 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).


    3. Appointment and Removal of Trustee or Examiner. All papers related to the appointment or removal of a trustee or examiner.


    4. Compensation Applications. Applications for compensation in all cases and adversary proceedings.


    5. 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.


    6. 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.


    7. 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:

  1. 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--
    1. the time spent on such services;


    2. the rates charged for such services;


    3. 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;


    4. 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


    5. 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