CACB — Rule 3003-1 through 3022-1

Source: https://www.cacb.uscourts.gov/sites/cacb/files/documents/local_rules/LBRs%203003-1%20through%203022-1.pdf

LBR 3007-1

LBR 3003-1. BAR DATE IN CHAPTER 11 CASES

(a) Claims Bar Date.

(1) General. In chapter 11 cases, except for subchapter V cases, the claims bar date
will be set by the Court either on its own motion or upon a motion filed
pursuant to LBR 9013-1(q).

(2) Subchapter V Cases. In subchapter V cases, unless otherwise ordered, the
claims bar date will be 70 days after, and for claims by governmental units 180
days after, the latest of: (1) the date of entry of the order for relief, (2) the date
of conversion of the case to chapter 11, subchapter V, or (3) the date of the
amendment of the petition to designate the case as a subchapter V case. In the
case of conversion or re-designation of a case to subchapter V, any previously-
set bar date will govern, unless otherwise ordered.

(b) Timing of Bar Date Notice.

(1) General. Unless otherwise ordered, in chapter 11 cases, except for subchapter
V cases, the debtor in possession or chapter 11 trustee, as applicable, must file
and serve the bar date notice on all parties entitled to notice within 7 days of the
entry of the order setting the bar date.

(2) Subchapter V Cases. Unless otherwise ordered, in subchapter V cases, the
debtor in possession or subchapter V trustee in possession, as applicable, must
file and serve the bar date notice within 7 days of (1) the date of entry of the
order for relief, (2) the date of conversion of the case to chapter 11, subchapter
V, or (3) the date of the amendment of the petition to designate the case as a
subchapter V case.

(c) Mandatory Form Notice of Bar Date. Any entity providing notice of the claims bar date must use the mandatory Court-approved form F 3003-1.NOTICE.BARDATE.

LBR 3007-1. OBJECTIONS TO CLAIMS

(a) Objections.

(1) An objection to claim is a “contested matter” under FRBP 9014. Except to the extent otherwise provided in this rule, an objection to claim must comply with LBR 9013-1 unless the objection is to become an adversary proceeding pursuant to FRBP 3007(b).

(2) A claim objection must include the number, if any, assigned to the disputed claim on the court’s claims register.

(3) A separate objection must be filed to each proof of claim unless:

(A) The objection pertains to multiple claims filed by the same creditor;

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LBR 3007-1

(B) The objection is an omnibus claim objection; or

(C) The court orders otherwise.

(4) An omnibus claim objection asserts the same type of objection to claims filed by
different creditors (e.g., claims improperly filed as priority claims, duplicate
claims, claims filed after the bar date, etc., as described in FRBP 3007(d)). In
addition to the requirements set forth in FRBP 3007(e), an omnibus claim
objection must:

(A) Identify the name of each claimant and the claim number in the caption of
the objection; and

(B) Include as exhibits the documents supporting each claim objection
organized and indexed by claim number.

(5) If more than 20 objections in a case are noticed for hearing on a single calendar,
the objector must comply with the supplemental procedures contained in The
Central Guide.

(b) Notice and Hearing.

(1) A claim objection must be set for hearing on notice of not less than 30 days.

(2) The claim objection must be served on the claimant at the address disclosed by
the claimant in its proof of claim and at such other addresses and upon such
parties as may be required by FRBP 7004 and other applicable rules.

(3) Notice of the objection on or conforming to court-mandated form F 3007-
1.1.NOTICE.OBJ.CLAIM, Notice of Objection to Claim, must be served with the
claim objection. The notice must advise the claimant of the date, time, and place
of hearing, and state:

(A) A response must be filed and served not later than 14 days prior to the date
of hearing set forth in the notice; and

(B) If a response is not timely filed and served, the court may grant the relief
requested in the objection without further notice or hearing.

(4) The court will conduct a hearing on a claim objection to which there is a timely
response.

(5) If the claimant timely files and serves a response, the court, in its discretion, may
treat the initial hearing as a status conference if it determines that the claim
objection involves disputed fact issues or will require substantial time for
presentation of evidence or argument.

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LBR 3007-1

(6) If the claimant does not timely file and serve a response, the court may sustain the
objection without a hearing.

(A) The objector must file a declaration attesting that no response was timely
filed and served upon the objector. The declaration must identify the docket
number and filing date of the objection to claim, notice, and proof of service
of the notice and objection to claim, and be served on the claimant.

(B) The objector must also lodge a proposed order prepared and served in
accordance with LBR 9021-1 and The Central Guide.

(C) The objecting party must serve the entered order on the claimant and
counsel, if any.

(c) Evidence Required.

(1) An objection to claim must be supported by admissible evidence sufficient to
overcome the evidentiary effect of a properly documented proof of claim
executed and filed in accordance with FRBP 3001. The evidence must
demonstrate that the proof of claim should be disallowed, reduced, subordinated,
re-classified, or otherwise modified.

(2) A copy of the complete proof of claim, including attachments or exhibits, must be
attached to the objection to claim, together with the objector’s declaration stating
that the copy of the claim attached is a true and complete copy of the proof of claim
on file with the court, or, if applicable, of the informal claim to which objection is
made.

(3) If the complete proof of claim is not readily available from the court file, the
objector may formally request a copy from the holder of the claim by serving the
creditor with a notice in substantially the same form as court-approved form
F 3007-1.2.NOTICE.REQ.CLAIM, Notice of Trustee’s/Debtor’s Request for a
Copy of Proof of Claim.

(A) The request must advise the holder of the claim that failure to supply a
complete copy of the proof of claim, including all attached documentation,
within 30 days of the notice may constitute grounds for objection to the claim
based on the claimant’s failure to provide requested documentation to support
the claim.

(B) If an objection is filed on this basis, it must be accompanied by a declaration
providing evidence that the proof of claim was not readily available from the
court file or otherwise.

(4) If the basis for the objection is that the proof of claim was filed after the bar date,
the objection must include a copy of each of the following:

(A) The bar date order, if any;

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LBR 3014-1

(B) The notice of bar date; and

(C) Proof of service of the notice of bar date.

(5) If the basis for the objection is that there are duplicate proofs of claim, the
objection must include a complete copy of each proof of claim.

LBR 3011-1. PROCEDURE FOR OBTAINING ORDER FOR PAYMENT OF UNCLAIMED FUNDS

(a) Form of Application.

(1) An entity seeking the payment of unclaimed funds pursuant to 28 U.S.C. § 2042 must file an application in compliance with LBR 9013-1 using Form 1340 Application for Payment of Unclaimed Funds.

(2) The failure to comply with this requirement may result in denial of the application without a hearing.

(b) Notice.

(1) An application for payment of unclaimed funds must be served on United States attorney for the Central District of California.

(2) The application will be denied if not served properly on the party listed in subsection (b)(1) of this rule.

(c) Order. The application may be ruled upon without a hearing pursuant to LBR 9013-1(p).

LBR 3014-1. ELECTION UNDER 11 U.S.C. § 1111(b) BY SECURED CREDITOR IN SUBCHAPTER V CASES

(a) Election Deadline.

(1) Section 1125 Does Not Apply. In a case under subchapter V of chapter 11 in which 11 U.S.C. § 1125 does not apply, the election under 11 U.S.C. § 1111(b) must be made not later than the date set for filing objections to the plan or another date that the Court may fix.

(2) Section 1125 Applies. In a subchapter V case in which the Court has ordered that a combined disclosure statement and plan be filed or that 11 U.S.C. § 1125(f)(3) applies, the election under 11 U.S.C. § 1111(b) must be made not later than the date fixed for objections pursuant to FRBP 3017.1(a)(2) or another date that the Court may fix.

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LBR 3015-1

LBR 3015-1. PROCEDURES REGARDING CHAPTER 13 CASES

(a) Applicability.

(1) Except as provided herein, this rule relates to chapter 13 cases in all divisions of the bankruptcy court and supersedes any previous orders in conflict with these provisions.

(2) To the extent that this rule conflicts with any other provisions of the Local Bankruptcy Rules, the provisions of this rule prevail. In all other respects, the Local Bankruptcy Rules apply in all chapter 13 cases.

(b) Filing and Service of Petitions, Plans, Proofs of Claim, and Other Forms.

(1) Filing of Petition and Case Commencement Documents; Effect of Not Filing
Timely. An original of the petition, schedules and all other documents required to
initiate the case must be filed with the court in accordance with procedures found in
The Central Guide.

Except as provided by FRBP 1019(1)(A), if the chapter 13 schedules, plan, and all
other required documents are not filed with the petition, the clerk will issue a notice
advising the debtor that, if the missing documents are not filed within 14 days from
the date of the filing of the petition, the court may dismiss the case, unless the court
grants a motion to extend time filed within the 14 days.

(2) Time Extension. A motion for extension of time must comply with LBR 1007-1(b).

(3) Notice and Service of Chapter 13 Plan and Notice of the Hearing on Confirmation.
The debtor must serve a notice of the hearing on confirmation of debtor’s chapter
13 plan, along with a copy of the chapter 13 plan, on all creditors and the chapter 13
trustee at least 14 days before the date first set for the § 341(a) meeting of creditors,
using the court-mandated F 3015-1.01.CHAPTER13.PLAN form. A proof of
service must be filed with the court and served on the chapter 13 trustee at least 7
days prior to the date first set for the meeting of creditors.

(4) Forms. The chapter 13 petition, schedules, statement of financial affairs, and proofs
of claim must be prepared on the appropriate Official Forms, as required by FRBP
1007(b)(1). All other chapter 13 documents filed by the debtor must be filed using
applicable court-approved forms, if any, or be prepared in the same format.

(5) Proof of Claim. Each proof of claim must be filed in accordance with FRBP 3002
and must be served on the debtor’s attorney, the debtor, and on the chapter 13
trustee. Each proof of claim must include a proof of service.

(6) Domestic Support Obligations. In all cases in which there is a domestic support

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obligation, regardless of the entity holding such claim, the debtor must provide to the chapter 13 trustee prior to or at the meeting of creditors the name, current address, and current telephone number of the holder of the claim along with any applicable case number and account number. Throughout the duration of the case, the debtor must inform the chapter 13 trustee of any new or changed information regarding this requirement. Should a domestic support obligation arise after the filing of the petition, the debtor must provide the required information to the chapter 13 trustee as soon as practicable but no later than 28 days after the duty arises to pay the domestic support obligation.

(7) Deadline to File Pleadings to Avoid Liens under 11 U.S.C. §§ 506(a) and 522(f). Unless otherwise ordered by the court, the debtor shall file any document to value collateral pursuant to 11 U.S.C. § 506(a) and/or any document to avoid a judgment lien pursuant to 11 U.S.C. § 522(f) within 28 days of commencement of the case.

(c) Meeting of Creditors – § 341(a).

(1) Notice and Service. The Clerk’s Notice of the § 341(a) meeting of creditors and initial confirmation hearing date will be served on all creditors by the court at least 28 days before the date first set for the § 341(a) meeting of creditors.

(2) Attendance Requirement. The debtor and debtor’s attorney (if any) must attend the § 341(a) meeting of creditors. If the case is a joint case, both debtors must appear.

(3) Evidence of Income. The debtor must provide evidence of current income (pay stubs, tax returns, or other equivalent documentation) to the chapter 13 trustee at least 7 days before the § 341(a) meeting of creditors. If income from third party contributors will be used to fund the plan, the debtor must also provide evidence (declarations and pay stubs or other appropriate evidence) of the commitment and the contributor’s proof of income for a full month.

(4) Required Reports when the Debtor is Self-Employed and has No Employees. If the debtor is self-employed but has no employees, the debtor must submit to the chapter 13 trustee at least 7 days before the § 341(a) meeting of creditors, the following:

(A) Projection of average monthly income and expenses for the next 12 months;

(B) Bank statements for the 6 months prior to the filing of the case for all bank accounts;

(C) Tax returns for at least 2 years or since the start of the business, whichever period is shorter; and

(D) Such other reasonable evidence requested by the chapter 13 trustee.

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LBR 3015-1

(5) Required Reports when a Debtor is Self-Employed and Has Employees. If the
debtor is operating a business or is otherwise self-employed, the debtor must submit
to the chapter 13 trustee at least 7 days before the § 341(a) meeting of creditors, the
following:

(A) Projection of average monthly income and expenses for the next 12 months;

(B) Evidence of appropriate business insurance;

(C) Inventory of goods as well as a list of business furnishings and equipment as
of the date of the filing of the petition;

(D) Monthly income and expense statements for at least the 6 months preceding
the date of the filing of the petition, or for such shorter time if the business has
been in operation for less than the requisite 6 months, signed by the debtor
under penalty of perjury;

(E) Tax returns for at least 3 years or since the start of the business, whichever
period is shorter; and

(F) Such other reasonable evidence requested by the chapter 13 trustee, including
bank statements, canceled checks, contracts, or other information relevant to
the debtor’s ability to fund the proposed plan.

(6) Failure to Comply. If the debtor fails to comply with any of the requirements of
this subsection (c) of this rule, such failure may result in:

(A) Disgorgement of attorneys’ fees if the failure is attributed to the debtor’s
attorney;

(B) Continuance of the § 341(a) meeting or confirmation hearing; and/or

(C) Dismissal of the case either (i) without prejudice or (ii) with a 180-day bar to
being a “debtor” in accordance with 11 U.S.C. § 109(g), if the court finds
willful failure of the debtor to abide by orders of the court or to appear before
the court in proper prosecution of the case.

(d) Confirmation Hearing. The debtor’s attorney or the debtor, if not represented by counsel, must appear at the confirmation hearing unless specifically excused by court order or by the trustee prior to the confirmation hearing in conformance with procedures of the judge to whom the case is assigned.

(1) Date of Confirmation Hearing. Unless otherwise ordered by the court, a
confirmation hearing will be held no earlier than 20 days after the commencement
of the § 341(a) meeting of creditors.

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LBR 3015-1

(2) Preparation of Order Confirming Plan.

(A) Lodgement of Order. Unless otherwise ordered by the court, the chapter 13
trustee will prepare on the mandatory form and lodge a proposed Order
Confirming Plan (“Order”) using procedures established by the Clerk’s
Office that will docket and serve the Notice of Lodgment and a copy of the
lodged order to all CM/ECF users registered to receive notices on the case.
In the case of a self-represented debtor who does not automatically receive
service of the Notice of Lodgment and a copy of the lodged order, the trustee
must serve such debtor by first class mail.

(B) Opportunity to Object. Within 7 days of the Notice of Lodgment, any party
may file an objection to the proposed Order, attaching an alternative proposed
Order at the objector’s discretion. The objecting party shall set a hearing on
the objection on not less than 7 and no more than 28 days’ notice on a regular
chapter 13 miscellaneous motion calendar.

(C) Entry of Order if No Objection. If no objection is filed within 7 days, the
proposed Order will then be reviewed and approved or modified by the court
and entered on the docket.

(D) Hearing on Objection and Entry of Order. At the noticed hearing, the court
shall rule on the objection and the form of Order, after which an Order will be
entered at the court’s direction.

(E) Service of Entered Order. The Order will be served by the court on the debtor
and the debtor’s attorney.

(e) Personal Property, including Vehicles.

(1) Postpetition Payments. The plan may provide that postpetition contractual
payments on leases of personal property and claims secured by personal property,
including vehicles, will be made directly to the creditor. All such direct payments
must be made as they come due postpetition. If there are arrearages or the plan
changes the amount of payment, duration, or interest rate for any reason, including
the fact that a portion of the claim is deemed unsecured, then all payments so
provided in the plan must be paid through the chapter 13 trustee. If the plan
provides for postpetition contractual payments to be made through the chapter 13
trustee, the debtor must pay the lease and adequate protection payments required by
11 U.S.C. §§ 1326(a)(1)(B) and 1326(a)(1)(C) through the chapter 13 trustee.

(2) Property Surrendered in Confirmed Plan. When the confirmed plan provides for the
surrender or abandonment of property, the trustee is relieved from making any
payments on the creditor’s related secured claim, without prejudice to the creditor’s
right to file an amended unsecured claim for a deficiency, when appropriate. The
stay is terminated as to the surrendered collateral upon entry of the order confirming

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the plan.

(3) Evidence of Payment.

(A) Filing and Service of Declaration At least 14 days prior to the dates set forth
below in subparagraph (e)(3)(B), the debtor must file and serve on the
chapter 13 trustee and all secured creditors to whom the debtor is required to
make payments under this subsection a declaration on court-mandated form
F 3015-1.4.DEC.PRECONF.PYMTS, evidencing that the debtor has made all
of the payments required by subsection (e)(1) of this rule. Unless otherwise
ordered by the court, copies of all money orders, cashier’s checks or other
instruments used to make the payments need not be attached to the form. The
first form, and each updated form, must reflect, cumulatively, all payments
made between the date of the petition and the date of the form.

(B) Events Requiring Evidence of Payment. The events requiring evidence of
payment are:

(i) the date scheduled for each § 341(a) meeting of creditors; and

(ii) the date scheduled for each hearing to consider confirmation of a chapter
13 plan in the case.

(C) Bring Declarations to All § 341(a) Meetings of Creditors and Hearings on
Plan Confirmation. The debtor must bring a copy of an executed form
F 3015-1.4.DEC.PRECONF.PYMTS, together with a proof of service
reflecting service establishing compliance with subparagraph (e)(3)(B).

(f) Domestic Support Obligations. The plan may provide for current payments of domestic support obligations directly to the creditor. The plan may provide for payment of a domestic support obligation arrearage and any such arrearage must be paid through the chapter 13 trustee.

(g) Objections to Plan.

(1) Filing and Service. Objections, if any, to the confirmation of the plan must be in
writing, supported by appropriate declarations or other admissible evidence, filed
with the court, and served on debtor’s attorney, the debtor (if not represented by
counsel), and the chapter 13 trustee not less than 14 days before the date set for the
confirmation hearing.
(2) Form of Objection and Caption. A written objection must state in the caption the
date, time, and place of the § 341(a) meeting of creditors and the date, time, and
place of the confirmation hearing.

(3) Failure to Object or to Prosecute Objection. The failure to file a written objection
on a timely basis may be deemed a waiver of the objection.

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LBR 3015-1

(4) Attendance. If the objecting creditor does not appear at the confirmation hearing, the court may overrule the objection.

(h) Amendments to Plan Prior to the Confirmation Hearing.

(1) Filing and Service. Failure to comply with these requirements may result in
continuance of the confirmation hearing or dismissal of the case.

(A) Amendments Not Treating Claims Adversely. If a debtor wishes the court to
confirm a plan other than the plan originally filed with the court and files the
amended plan, the amended plan must be filed and served on the chapter 13
trustee at least 7 days before the confirmation hearing.

(B) Amendments Treating Claims Adversely. If the amended plan will adversely
affect any creditor (for example, if it treats any creditor’s claim less favorably
than the previously filed plan), the amended plan must be filed and served on
all affected creditors and the chapter 13 trustee at least 28 days before the
confirmation hearing.

(2) Caption of Amended Plan. The caption of an amended plan must identify that it is
an amended plan (e.g., “First Amended Plan,” “Second Amended Plan”) and must
state the date, time, and place of the confirmation hearing at which the debtor will
seek confirmation.

(3) Effects of Amended Plan on Plan Payments. If the debtor files an amended plan,
the debtor must tender plan payments which come due after the filing date of the
amended plan in the amount set forth in the amended plan. The amended plan shall
also take into account all prior plan payments tendered to the chapter 13 trustee and
shall state the amount of each prior payment and the month to which that prior
payment is attributed to.

(4) Amendments to Plan at the Confirmation Hearing. If a debtor wishes the court to
confirm a plan other than the plan originally filed with the court, and the proposed
amendments are not contained in the original plan or a timely filed amended plan,
the amendment may be made by oral motion at the confirmation hearing if the
amendment to a plan does not adversely affect creditors. The proponent of the
amendment should give the chapter 13 trustee an opportunity to review the
proposed amendment prior to the confirmation hearing.

(i) INTENTIONALLY LEFT BLANK.

(j) Payment on Proofs of Claim Subject to Objections to Claims. Pending resolution, the chapter 13 trustee will make payments on only the uncontroverted portion of the claim subject to the objection to claim, until such time as the court orders otherwise.

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LBR 3015-1

(k) Plan Payments to Chapter 13 Trustee.

(1) Plan Payment Procedure.

(A) Plan payments are due on the same day of each month beginning not later than 30 days after the petition is filed. If the case was converted from chapter 7, the first plan payment is due 30 days from the date of conversion. However, if the plan payment due date falls on the 29th, 30th, or 31st of the month, then the plan payment is due on the 1st of the following month. Unless otherwise instructed by the assigned chapter 13 trustee, all plan payments that accrue before the § 341(a) meeting of creditors must be tendered, in the form described in subsection (k)(3) of this rule, to the chapter 13 trustee or the trustee’s representative at the § 341(a) meeting of creditors.

(B) All plan payments that accrue after the § 341(a) meeting of creditors but prior to confirmation must be tendered on a timely basis to the chapter 13 trustee, as instructed by the chapter 13 trustee at the § 341(a) meeting of creditors.

(C) All plan payments that accrue after confirmation of the plan must be sent to the address provided by the chapter 13 trustee.

(D) To the extent the debtor has made plan payments under an original or modified plan prior to confirmation that differ from payments required by the confirmed plan, the confirmation order must account for plan payments made through the date of confirmation and adjust the on-going plan payments accordingly so that the debtor will complete payment of all plan amounts within the term of the confirmed plan.

(2) Adequate Protection Payments. The debtor cannot reduce the amount of the plan payments to the chapter 13 trustee under 11 U.S.C. §§ 1326(a)(1)(B) or 1326(a)(1)(C) without an order of the court.

(A) Pending confirmation of the plan, the chapter 13 trustee will promptly disburse payments received from the debtor as proposed in the debtor’s chapter 13 plan to a creditor holding an allowed claim secured by personal property where such security interest is attributable to the purchase of such property.

(B) The chapter 13 trustee may assess an administrative fee for effecting the payments required in subsection (k)(2)(A) of this rule and may collect such fee at the time of making the payment. The allowed expense fee must be no more than the percentage fee established by the Attorney General pursuant to 28 U.S.C. § 586(e)(1)(B) in effect at the time of the disbursement.

(C) Should the case be dismissed or converted prior to or at the hearing on

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confirmation of the plan, any portion of the balance on hand which has been tendered to the chapter 13 trustee for adequate protection must be disbursed to the creditor to whom those adequate protection payments are owed as soon as practicable.

(3) Form of Payment. Unless and until a payroll deduction order is effective, all plan
payments must be paid electronically, in the form of cashier’s check, certified
funds, money order made payable to the “Chapter 13 Trustee,” or other means
approved by the chapter 13 trustee in advance, and tendered by the debtor as
instructed by the chapter 13 trustee. The court may require plan payments through a
payroll deduction order. If a payroll deduction order is not authorized in the
confirmation order, whenever a plan payment is more than 21 days late, the chapter
13 trustee may file and serve a motion requesting the court to issue such an order.
The entered order must be served upon the debtor’s employer, the debtor, and the
debtor’s attorney (if any).

(4) Dismissal or Conversion for Non-Payment. If the debtor fails to make a plan
payment, the case may be dismissed or converted to a case under chapter 7. If the
case is dismissed for willful failure of the debtor to abide by an order of the court,
or to appear before the court in proper prosecution of the case, the court may
impose a 180-day bar to being a “debtor” in accordance with 11 U.S.C. § 109(g).

(l) INTENTIONALLY LEFT BLANK.

(m) Payments on Mortgages or Trust Deeds.

(1) Scope of Rule. The term “Real Property” as used in this subsection includes both
(A) commercial and residential real property and undeveloped land owned by the
debtor; and (B) mobile and manufactured homes owned by the debtor and installed
on a permanent foundation or used as a dwelling, but does not include any property
that the debtor’s filed plan specifically states will be surrendered.

(2) Postpetition Payment Procedure. Except for plans in which the debtor elects to
make postpetition mortgage payments through the plan, until a plan is confirmed, a
debtor must pay in a timely manner directly to each secured creditor all payments
that fall due postpetition on debt secured by Real Property, as defined above, and
must provide evidence of such payments on court-mandated form F 3015-
1.4.DEC.PRECONF.PYMTS in the manner set forth below.

The plan may provide that postpetition mortgage payments will be made directly to
the creditor. All such direct payments must be made as they come due postpetition.
If there are arrearages or the plan changes the amount of payment, duration, or
interest rate for any reason, including the fact that a portion of the claim is deemed
unsecured, then all payments so provided in the plan must be paid through the
chapter 13 trustee. If the debtor elects to pay postpetition mortgage payments
through the chapter 13 trustee, then the amount of the mortgage payment must be

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included in each monthly plan payment tendered to the chapter 13 trustee for the term of the plan.

(3) Determination of Due Date. With the exception of the payment due for the month in which the petition is filed (the “Filing Month Payment”), the due date of a payment for the purpose of this subsection is the last day that the payment may be made without a late charge or penalty. The due date of the Filing Month Payment will be the date on which such payment first becomes due under the terms of the applicable promissory note. If that date falls on or before the petition date, the Filing Month Payment will be considered prepetition and need not be paid in order to comply with this subsection.

(4) Real Property Surrendered in Confirmed Plan. When the confirmed plan provides for the surrender of real property, the trustee is relieved from making any payments on the creditor’s related secured claim, without prejudice to the creditor’s right to file an amended unsecured claim for a deficiency, when appropriate. The stay is terminated as to the surrendered collateral upon entry of the order confirming the plan.

(5) Form of Payment. The payments required by subsection (m)(2) of this rule must be in the form of money order, cashier’s check, wire transfer (including direct payments over the Internet or by automatic withdrawals from the debtor’s checking account), certified funds, or other instruments used to make the payments and must indicate on each item the debtor’s name, the bankruptcy case number, and the appropriate loan number or credit account number.

(6) Evidence of Payment

(A) Filing and Service of Declaration. At least 14 days prior to the dates set forth below in subparagraph (m)(6)(B), the debtor must file with the court and serve on the chapter 13 trustee and all secured creditors to whom the debtor is required to make payments under this subsection a declaration on court- mandated form F 3015-1.4.DEC.PRECONF.PYMTS, evidencing that the debtor has made all of the payments required by subsection (m)(2) or (3) of this rule. Unless otherwise ordered by the court, copies of all money orders, cashier’s checks, wire transfers (including direct payments over the Internet or by automatic withdrawals from the debtor’s checking account), certified funds, or other instruments used to make the payments need not be attached to the form. The first form, and each updated form must reflect, cumulatively, all payments made between the date of the petition and the date of the form. If the debtor owns more than one parcel of Real Property, the debtor must prepare and submit a separate form F 3015-1.4.DEC.PRECONF.PYMTS for each parcel of Real Property.

(B) Events Requiring Evidence of Payment. The events requiring evidence of payment are:

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LBR 3015-1

(i) the date scheduled for each § 341(a) meeting of creditors; and

(ii) the date scheduled for each hearing to consider confirmation of a
chapter 13 plan in the case.

(C) Bring Declaration to All § 341(a) Meetings of Creditors and Hearings on Plan
Confirmation. The debtor must bring a copy of an executed form F 3015-
1.4.DEC.PRECONF.PYMTS, together with a proof of service reflecting
service in accordance with this subsection, to all dates set forth above in
subparagraph (m)(6)(B).

(7) Failure to Make Postpetition Payments. Failure to make all of the payments
required by subsection (m)(2) or (3) of this rule in a timely manner will generally
result in dismissal of the case. In determining whether a debtor has complied with
this subsection at a confirmation hearing, the court will disregard payments as to
which a late penalty has not yet accrued or which are due on the date of the
confirmation hearing. The failure to submit form F 3015-
1.4.DEC.PRECONF.PYMTS at each § 341(a) meeting of creditors and each
confirmation hearing, with all required attachments, may result in dismissal of the
case, and the court may impose a 180-day bar to being a debtor pursuant to
11 U.S.C. § 109(g).

(n) Modification of Confirmed Plan or Suspension of Plan Payments. After a chapter 13 plan has been confirmed, its terms can be modified only by court order upon a motion to modify the plan or a stipulation between the debtor and the chapter 13 trustee. A motion to modify a confirmed plan or to suspend plan payments must be made in accordance with subsections (w) and (x) of this rule and must be filed using court-mandated forms.

(o) Tax Returns. For each year a case is pending after the confirmation of a plan, the debtor must provide to the chapter 13 trustee within 14 days after the return is filed with the appropriate tax agencies a copy of: (1) the debtor’s federal and state tax returns; (2) any request for extension of the deadline for filing a return; and (3) the debtor’s forms W- 2 and 1099. The debtor must timely file with the appropriate tax authority all tax returns that come due after commencement of the case.

(p) Sale or Refinance of Real Property. A sale or refinancing of the debtor’s principal residence or other real property must be approved by the court. A motion to approve a sale or refinance of real property may be made by noticed motion in accordance with subsections (w) and (x) of this rule.

(q) Dismissal or Conversion of Case.

(1) Debtor Seeks Dismissal.

(A) Case Has Not Been Previously Converted. If the case has not been

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converted from another chapter, a debtor may seek dismissal of the case by filing with the clerk of the bankruptcy court a request for voluntary dismissal pursuant to 11 U.S.C. § 1307(b) and may be ruled on without a hearing pursuant to LBR 9013-1(q). The proof of service must evidence that the request for dismissal was served upon the chapter 13 trustee and the United States trustee.

(B) Case Has Been Previously Converted. If the case has been converted from
another chapter, a debtor must file and serve a motion in accordance with
LBR 9013-1 (d) or (o) and LBR 1017-2(e). Notice must be given to the
chapter 13 trustee, any former trustee, all creditors, and any other party in
interest entitled to notice under FRBP 2002.

(C) Mandatory Disclosure. Whether dismissal is sought by request or motion, a
debtor must disclose under penalty of perjury whether the present case has
been converted from another chapter of the Bankruptcy Code, and whether
any motion for relief from, annulment of, or conditioning of the automatic
stay has been filed against the debtor in the present case.

(2) Debtor Seeks Conversion.

(A) Debtor Seeks First Time Conversion of Chapter 13 to Chapter 7. Pursuant to
11 U.S.C. § 1307(a), FRBP 1017 and LBR 1017-1(a)(1), the conversion of a
chapter 13 case to a case under chapter 7 (for the first time) will be effective
upon:

(i) The filing by the debtor with the clerk of the bankruptcy court of a
notice of conversion using court-mandated form F 3015-1.21.NOTICE.
CONVERT.CH13 and a proof of service evidencing that the notice of
conversion was served upon the chapter 13 trustee and the United States
trustee; and

(ii) Payment of any fee required by 28 U.S.C. § 1930(b).

(B) Debtor Seeks Subsequent Conversion of Chapter 13 to Chapter 7. If the case
has previously been converted from another chapter, a debtor must file and
serve a motion in accordance with LBR 9013-1(d) or (o). Notice must be
given to the chapter 13 trustee, any former trustee, and all creditors.

(C) Debtor Seeks Conversion of Chapter 13 to Chapter 11. A motion by the
debtor to convert a chapter 13 case to a case under chapter 11 must be filed,
served and set for hearing in accordance with LBR 9013-1(d). Notice must be
provided to the chapter 13 trustee and all creditors.

(3) Interested Party Seeks Dismissal or Conversion of Chapter 13 to Chapter 7, 11, or 12. A motion by any other party in interest to either dismiss a chapter 13 case, or

57

alternatively, to convert a chapter 13 case to a case under chapter 7, 11, or 12, must be noticed for hearing by the moving party pursuant to LBR 9013-1(d). This notice must be given to the debtor, debtor’s attorney (if any), all creditors, the chapter 13 trustee, any former trustee, and the United States trustee.

(4) Lodging and Service of Order. When an order is required, the moving party must prepare and lodge the proposed order of dismissal or conversion in accordance with LBR 9021-1 and The Central Guide. The Clerk will prepare a separate notice of dismissal or conversion.

(5) Distributions before Notice to the Chapter 13 Trustee. Any distributions of estate funds made by the chapter 13 trustee in the ordinary course of business for the benefit of the debtor’s estate prior to receipt of notice of dismissal or conversion will not be surcharged to the chapter 13 trustee.

(6) Distributions after Notice to Chapter 13 Trustee. Unless the court orders otherwise, and subject to the provisions below regarding contested distributions, the following procedures implement the requirement that the chapter 13 trustee return to the debtor (i) any postpetition earnings and (ii) any other property that is no longer property of the estate and that is vested in the debtor, after deduction for any unpaid administrative expense and certain other claims, under 11 U.S.C. §§ 348(f), 349(b), 1326(a)(2), and FRBP 1019(5) or (6).

(A) 14 Day Holding Period. The chapter 13 trustee must hold any remaining
property until at least 14 days have passed after entry of the order dismissing
or converting the case. Within 14 days of dismissal or conversion any person
or entity asserting an administrative expense under 11 U.S.C. § 503
(including, without limitation, a claim for professional fees), or a claim under
§1326(a)(2) and (3), must file an application, motion or other written request
for payment thereof, set it for hearing if required, serve it pursuant to the
applicable rules, and, if the document is not filed electronically, deliver it to
the chapter 13 trustee so that it is received before the end of such 14-day
period. If the claimant fails to do all of these things timely (the “Claim
Prerequisites”), then the chapter 13 trustee may treat such request as having
been filed after the 14-day deadline and of no force of effect, absent a court
order to the contrary. After the deduction of any applicable chapter 13 trustee
fees, the chapter 13 trustee must make distributions as follows:

(i) Distributions to Administrative Claimants. First, pro rata distributions to
the holders of administrative expenses under 11 U.S.C. § 503(b) as to
which (1) the Claim Prerequisites have been satisfied timely and (2) as
to which the court has entered an order approving payment.

(I) Administrative expenses to which subparagraph (6)(A)(i) is applicable include without limitation: (a) any unpaid attorney’s fee or expense asserted under a Rights and Responsibilities Agreement

58

signed by the debtor’s attorney and the debtor or an FRBP 2016(b) statement, (b) any supplemental fee or expense under 11 U.S.C. § 330, (c) any administrative expenses scheduled under FRBP 1019(5)(B) or (C), and (d) any other administrative expense.

(II) Unless a different deadline has been established in connection with
a scheduled hearing, any application, motion or other request for
payment of an administrative expense under 11 U.S.C. § 503(b)
must advise parties in interest that any objection to the allowance
and payment of such expense must be filed and served no later
than 14 days following service of such application or request, or
such objection must be deemed waived. Any objection must be
served on the applicant, the chapter 13 trustee and the debtor. If the
objection is not filed electronically, it must be served so that it is
received by these parties within such 14-day period. If an objection
is timely filed, the applicant must schedule a hearing with the court
and serve notice of such hearing on interested parties.

(ii) Distributions to Certain Creditors. Second, after any distributions to the
holders of administrative expenses as provided above, pro rata
distributions on the allowed claims of any persons who have filed an
application for payment of amounts due and owing pursuant to
11 U.S.C. § 1326(a)(2) and (3) that satisfies the above Claim
Prerequisites.

(iii) Distributions to the Debtor.

(I) Postpetition Earnings. After the foregoing distributions, the
chapter 13 trustee must distribute any remaining postpetition
earnings to the debtor, or to the chapter 11 trustee if the chapter 13
trustee has been served with an order or notice of appointment of a
chapter 11 trustee.

(II) Other Property. If the chapter 13 trustee holds any property known
to the chapter 13 trustee to come from a source other than
postpetition earnings, such as proceeds from the sale of property,
and that property is not automatically vested in any entity (e.g.,
under 11 U.S.C. § 349(b)(3)), then the chapter 13 trustee must treat
such property as a contested distribution pending an order, on an
application by a party in interest, authorizing a proposed
distribution to the debtor or other persons pursuant to
11 U.S.C. § 348(f)(1) (for conversion) or 11 U.S.C. § 349(b) (for
dismissal) and 11 U.S.C. § 1326(a)(2).

(B) Contested Distributions. Notwithstanding the foregoing, if an application, motion request or objection regarding distribution is pending, or if the

59

chapter 13 trustee files an application for instructions from the court for direction concerning the distribution of funds, then the chapter 13 trustee must reserve sufficient funds to pay the maximum requested amounts, pending resolution by order or by consent of the affected persons.

(r) Motions Regarding Stay of 11 U.S.C. § 362.

(1) Required Format and Information. A motion regarding the stay of 11 U.S.C. § 362
must comply with LBR 4001-1.

(2) Motions Regarding Default in Payment.

(A) Preconfirmation Default. A motion for relief from the automatic stay based
solely upon a preconfirmation payment default is premature until a late charge
has accrued under the contract on the postpetition obligation that the creditor
seeks to enforce. If no late charge is provided, the motion may be brought
14 days after the postpetition payment is due. A motion for relief from stay
based on other grounds may be brought at any time.

(B) Postconfirmation Default. A motion for relief from the automatic stay based
solely on postconfirmation payment default is premature until a late charge
has accrued under the contract on the obligation that the creditor seeks to
enforce. If no late charge is provided, the motion may be brought 14 days
after payment is due.

(3) Stipulations Regarding the Stay of 11 U.S.C. § 362. A stipulation for relief from
the automatic stay or to modify the automatic stay, or to impose or continue the
stay, does not require the consent or signature of the chapter 13 trustee unless the
provisions of the stipulation require the trustee to continue payment, discontinue
payment, or perform other actions. Such stipulations must be approved by a court
order that must be prepared and lodged in accordance with LBR 4001-1(b)(2)(B).

(4) Payments after Relief from Automatic Stay. If an order is entered granting relief
from the automatic stay, unless otherwise specified in the order, the chapter 13
trustee is relieved from making any further payments to the secured creditor that
obtained such relief. The secured portion of that creditor’s claim is deemed
withdrawn upon entry of the order for relief, without prejudice to filing an amended
unsecured claim for a deficiency when appropriate. The secured creditor that
obtains relief from the automatic stay must return to the chapter 13 trustee any
payments the creditor receives from the chapter 13 trustee after entry of the order
unless the stipulation or order provides otherwise.

(5) No Surcharge of Chapter 13 Trustee. The chapter 13 trustee will not be surcharged
for any distribution of funds in the ordinary course of business prior to receiving
written notice that the automatic stay is not in effect or a claim should not be paid.

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LBR 3015-1

(s) Postconfirmation Adequate Protection Orders.

(1) Filing and Service. After an order confirming a plan is entered, if the debtor
proposes to modify the payments by the chapter 13 trustee to the secured creditor
by way of an adequate protection/relief from the automatic stay agreement, the
debtor must file and serve a motion for an order approving the modification of the
plan by the agreement pursuant to subsections (w) and (x) of this rule.

(2) Payments Pending Plan Modification. Notwithstanding court approval of an
adequate protection/relief from the automatic stay agreement, the trustee will
continue to make payments and otherwise perform the trustee’s duties in
accordance with the plan as confirmed unless: (A) the debtor receives a separate
court order approving a modification to the plan; or (B) the adequate
protection/relief from the automatic stay agreement specifically modifies the
treatment of the claim under the confirmed plan.

(t) Discharge Procedures.

(1) General. When the chapter 13 trustee has completed payments under the plan and
all other plan provisions have been consummated, the clerk will send to the debtor
and the debtor’s attorney (if any), a Notice of Requirement to File a Debtor’s
Certification of Compliance Under 11 U.S.C. § 1328 and Application for Entry of
Discharge. Before any discharge may be entered, the debtor must comply with the
requirements of the Certification of Compliance and file the certification with the
court.

(2) Instructional Course on Personal Financial Management. The debtor must also file
a certificate to show that the debtor has completed an instructional course
concerning personal financial management, as required by 11 U.S.C. § 1328(g)(1),
unless completion of such course is not required under 11 U.S.C. § 1328(g)(2).

(3) Case Closure without Discharge. If the certifications required by this subsection
have not been filed within 60 days of the notice provided under subsection (t)(1) of
this rule, then the case may be closed without an entry of discharge.

(u) Attorney Representation.

(1) Scope of Employment. LBR 2090-1(a) is modified in chapter 13 cases as follows: Any attorney who is retained to represent a debtor in a chapter 13 case is responsible for representing the debtor on all matters arising in the case, other than adversary proceedings, subject to the provisions of a “Rights and Responsibilities Agreement Between Chapter 13 Debtors and Their Attorneys,” into which the debtor and the attorney have entered and that complies with these rules.

(2) Debtor Unavailable or Unopposed to Request, Application, or Motion Scheduled

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for Hearing. If an attorney for a debtor is unable to contact the debtor in connection with a request, application or motion (e.g., a motion for relief from the automatic stay) that is scheduled for a hearing, the attorney may file and serve a statement informing the court of this fact. If a debtor does not oppose the request, application or motion, the attorney may file a statement so informing the court and need not appear at the hearing.

(3) Change of Address. An attorney representing a chapter 13 debtor must provide written notice to the chapter 13 trustee and to the court of any change to the attorney’s address during the pendency of the case as required by LBR 2091-1(f).

(v) Attorneys’ Fees.

(1) Rights and Responsibilities Agreement. The use of court-approved form
F 3015-1.7.RARA, Rights and Responsibilities Agreement Between Chapter 13
Debtors and Their Attorneys (“RARA”) in any case is optional. However, if the
debtor’s attorney elects to proceed under the RARA, the RARA form is mandatory.
If the RARA form is signed by the attorney and the debtor, filed, and served on the
chapter 13 trustee, the fees and included costs (excluding the petition filing fee)
outlined therein may be approved without further detailed fee application or
hearing, subject to the terms of both the RARA and the Guidelines for Allowance of
Attorneys’ Fees in Chapter 13 Cases (“Guidelines”) adopted by the court. The
RARA may be used only once in any chapter 13 case.

(2) Duties of Debtors and their Attorneys if the RARA is Signed, Filed, and Served.
The RARA sets forth the duties and obligations that must be performed by the
debtor and debtor’s attorney, both before and after the case is filed and before and
after confirmation of a plan, if the parties elect to use the RARA. The RARA also
specifies the fees that the attorney will charge and the procedures for seeking and
objecting to payment of fees. An attorney who elects to use the RARA may not
charge more than the maximum fees outlined in subsection (v)(1) of this rule for
performing services described in bold face type in the RARA. If the attorney
performs tasks on behalf of the debtor not set forth in bold face, the attorney may
apply to the court for additional fees and costs, but such applications will be
reviewed by both the chapter 13 trustee and the court. Counsel may apply for
additional fees if and when justified by the facts of the case.

An application for additional fees and costs must be made by noticed motion
subject to subsections (w) and (x) of this rule. The application must be supported
by evidence of the nature, necessity, and reasonableness of the additional services
rendered and expenses incurred, and in accordance with The Central Guide,
Section 4, 3015-1(v)(2). When additional fees are sought, the court may, in its
discretion, require additional supporting information or require a hearing, even
though no opposition is filed. In such application, the applicant must disclose to the
court any fees paid or costs reimbursed by the debtor and the source of those
payments.

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LBR 3015-1

If the parties elect to utilize the RARA, the lists of duties and obligations set forth in
the RARA may not be modified by the parties. Other portions of the RARA may be
modified in the following respects only: (A) the attorneys’ fees provided for in the
RARA may be reduced; and (B) the agreement may be supplemented to include any
additional agreements that may exist between the parties concerning the fees and
expenses that the attorney will charge for performing services required by the
RARA that are not in bold face type.

(3) Debtor’s Signature. The debtor’s signature on the RARA certifies that the debtor
has read, understands, and agrees to the best of the debtor’s ability to carry out the
terms of the RARA and has received a signed copy of the RARA.

(4) Attorney’s Signature. The attorney’s signature on the RARA certifies that before
the case was filed the attorney personally met with, counseled, and explained to the
debtor all matters set forth in the RARA and verified the number and status of any
prior bankruptcy case(s) filed by the debtor or any related entity, as set forth in
LBR 1015-2. The RARA does not constitute the written fee agreement
contemplated by the California Business and Professions Code.

(5) An Attorney May Elect to be Paid other than Pursuant to the RARA and the
Guidelines. At any time, when a RARA has not been entered into, or has been
withdrawn with the written consent of the client(s), or when the attorney is seeking
supplemental fees beyond the services in boldface that are “Included Costs” under
the RARA, the debtor’s attorney may elect to seek an allowance of fees and costs
other than pursuant to the RARA and the Guidelines. In that event, the attorney
must file and serve an application for fees in accordance with 11 U.S.C. §§ 330 and
331, FRBP 2016 and 2002, and LBR 2016-1 and 3015-1, as well as the “Guide to
Applications for Professional Compensation” issued by the United States trustee for
the Central District of California.

(6) Court Review of any Attorney’s Fee. Upon notice and opportunity for hearing, the
court may review any attorney’s fee agreement or payment, in accordance with
11 U.S.C. § 329 and FRBP 2017.

(w) Motions and Applications Filed on Notice of Opportunity to Request a Hearing.

(1) Motions and Applications. The following motions and applications may be made on notice of opportunity to request a hearing pursuant to LBR 9013-1(o):

(A) Chapter 13 trustee’s motion to modify a confirmed plan or dismiss a case;

(B) Motion to modify a confirmed plan or to suspend or extend plan payments, subject to subsections (n) and (x) of this rule, provided that 21 days’ notice of the motion is given in accordance with FRBP 3015(g);

63

LBR 3015-1

(C) Motion for approval of sale or refinancing of debtor’s residence, subject to subsection (p) of this rule, if the entire equity therein is exempt from the claims of creditors; provided, however, notice is not required if the sale or refinance will pay off the plan and the plan allows 100% to the unsecured claims; and

(D) Application for supplemental attorney’s fees, subject to subsections (u), (v) and (x) of this rule.

(2) No Response Filed. If no response has been timely filed and served with respect to a motion or application listed in subsection (w)(1) of this rule, or the chapter 13 trustee’s only response is to take no position, the provisions of LBR 9013-1(o)(3) must be complied with, subject to the following modifications:

(A) Motion to Modify a Confirmed Plan or to Suspend or Extend Plan Payments. The declaration must also attest that the chapter 13 trustee did not timely file and serve a response to the motion, and the declaration must be served on the chapter 13 trustee.

(B) Application for Supplemental Fees. The declaration must attest that the chapter 13 trustee did not timely file and serve a response to the application, or took no position, and the declaration must be served on the chapter 13 trustee.

(3) Response Filed. If a response is filed with respect to any motion or application listed in subsection (w)(1) of this rule, the provisions of LBR 9013-1(o)(4) must be complied with, subject to the following modifications:

(A) Trustee’s Motion to Dismiss a Case; Trustee’s Motion to Modify a
Confirmed Plan. The person or entity who timely files and serves a response
to a trustee’s motion to dismiss a case, or a trustee’s motion to modify a
confirmed plan, must, prior to filing and serving the response, obtain a hearing
date from the court (or use the court’s self-calendaring system) and the
hearing date, time and location must be indicated on the caption page of the
response. The hearing date must be the court’s next available chapter 13
calendar that provides the chapter 13 trustee with at least 7 days of notice, but
the hearing date must not be more than 30 days after the response is filed.
The court may grant the motion without a hearing if the hearing is not set
timely.

(B) Debtor’s Motion to Modify a Confirmed Plan or Suspend or Extend Plan
Payments, or Application for Supplemental Fees. If the chapter 13 trustee
timely files and serves any comments regarding the motion or application, the
debtor must promptly lodge a proposed order, and, when serving a judge’s
copy of the notice of lodgment, include a copy of the motion/application and
the trustee’s comments.

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LBR 3017-1

(x) Service of Motions and Applications. All motions and applications must be served, subject to the electronic service provisions of LBR 9036-1, on the chapter 13 trustee, debtor (and debtor’s attorney, if any), and all creditors, with the following exceptions:

(1) A chapter 13 trustee’s motion to dismiss a case need be served only on the debtor, debtor’s attorney (if any), any prior chapter 7 trustee, and that trustee’s attorney (if any);

(2) An objection to a claim must be served on the chapter 13 trustee, the claimant, and the claimant’s attorney (if any). If the claimant is the United States or an officer or agency of the United States, the objection must be served as provided in FRBP 7004(b)(4) and (5) and LBR 2002-2;

(3) A motion for modification, suspension, or extension of the due date of plan payments must be filed using court-mandated forms and must be served on the chapter 13 trustee, but need not be served on creditors if: (A) the proposed modification does not have an adverse effect on the rights of creditors; or (B) the proposed suspension or extension, combined with any prior approved suspensions or extensions, does not exceed 90 days of suspended payments or 90 days of extensions to the plan’s term. Any other motion for modification, suspension, or extension must be served on all creditors pursuant to LBR 9013-1(o) in addition to being served on the chapter 13 trustee;

(4) A motion regarding the stay of 11 U.S.C. § 362, which is subject to the notice and service requirements of LBR 4001-1; and

(5) An application by debtor’s counsel for additional fees and costs not exceeding $1,000 over and above the limits set forth in the RARA and Guidelines need be served only on the chapter 13 trustee and the debtor.

LBR 3017-1. CHAPTER 11 DISCLOSURE STATEMENT – APPROVAL IN CASE OTHER THAN SMALL BUSINESS CASE

(a) Notice of Hearing on Motion for Approval of Disclosure Statement. A hearing on a motion for approval of a disclosure statement must not be set on less than 42 days notice, unless the court, for good cause shown, prescribes a shorter period.

(b) Objections to Disclosure Statement. Objections to the adequacy of a disclosure statement must be filed and served on the proponent not less than 14 days before the hearing, unless otherwise ordered by the court.

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LBR 3018-1

LBR 3017-2. CHAPTER 11 DISCLOSURE STATEMENT – APPROVAL IN SMALL BUSINESS CASES AND WHEN REQUIRED IN SUBCHAPTER V CASES

(a) Applicability. This LBR applies in a small business case or in a case under subchapter V of chapter 11 in which the Court has ordered that 11 U.S.C. § 1125 applies.

(b) Conditional Approval of Disclosure Statement . The court may, on application of the plan proponent or without an application, conditionally grant a motion for approval of a disclosure statement filed in accordance with 11 U.S.C. § 1125(f) and FRBP 3016.

(c) Procedure for Requesting Conditional Approval of Disclosure Statement. The plan proponent may file a motion, without complying with LBR 9013-1(d) or LBR 9013- 1(o), for conditional approval of the disclosure statement, asking that the hearing on the adequacy of the disclosure statement be combined with the hearing on plan confirmation. The motion must be supported by a declaration establishing grounds for conditional approval and accompanied by a proposed order consistent with FRBP 2002(b) that conditionally approves the disclosure statement and establishes:

(1) A date by which the holders of claims and interests may accept or reject the
plan;

(2) A date for filing objections to the disclosure statement;

(3) A date for the hearing on final approval of the disclosure statement to be held if
a timely objection is filed; and

(4) A date for the hearing on confirmation of the plan.

(d) Objections and Hearing on Final Approval.

(1) The debtor must file and serve a notice of the dates set forth above, together
with a copy of the disclosure statement and plan, on all creditors and the United
States trustee.

(2) Final approval of the disclosure statement is required only when a timely
objection is filed and served on the debtor, the trustee (if any), any committee
appointed under the Bankruptcy Code, counsel for any of the foregoing, and any
other entity as ordered by the court.

LBR 3018-1. BALLOTS – VOTING ON CHAPTER 11 PLAN

(a) Ballot Summary. The plan proponent must:

(1) Tabulate the ballots of those accepting or rejecting the plan;

(2) File a ballot summary not later than 14 days before the hearing on the motion for
order confirming the plan. The ballot summary must be signed by the plan
proponent and must certify to the court the amount and number of allowed claims

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of each class voting to accept or reject the plan and the amount of allowed interests of each class voting to accept or reject the plan; and

(3) Make available at the hearing all of the original ballots for inspection and review by the court and any interested party.

(b) Amended Ballot Summary. In addition to the requirements set forth in subsection (a) of this rule, the court may order an amended ballot summary to be filed with the original ballots attached.

LBR 3020-1. CHAPTER 11 PLAN CONFIRMATION AND POSTCONFIRMATION REQUIREMENTS

(a) Payment of Special Charges. The proposed plan confirmation order must be accompanied by proof of payment of any and all special charges due to the clerk’s office. The amount of the charges to be paid may be obtained from the courtroom deputy of the judge hearing the case.

(b) Postconfirmation Requirements. After confirmation of a chapter 11 plan, the reorganized debtor must file and serve postconfirmation status reports (on the United States trustee and the 20 largest unsecured creditors) setting forth the following information:

(1) Progress that has been made toward substantial consummation of the confirmed
plan;

(2) A schedule listing for each debt and each class of claims; the total amount
required to be paid under the plan; the amount required to be paid as of the date
of the report; the amount actually paid as of the date of the report; and the
deficiency, if any, in required payments;
(3) A schedule of any and all postconfirmation tax liabilities that have accrued or
come due and a detailed explanation of payments thereon;

(4) Projections as to the reorganized debtor’s, postconfirmation trustee’s, or other
responsible party’s continuing ability to comply with the terms of the plan;

(5) An estimate of the date for plan consummation and application for final decree;
and

(6) Any other pertinent information needed to explain the progress toward
completion of the confirmed plan. Reporting entities whose equity securities are
registered under Section 12(b) of the Securities Exchange Act of 1934 may
provide information from their latest 10Q or 10K filing with the S.E.C., if it is
responsive to the requirements of this subsection.

(c) Timing of Postconfirmation Reporting. Unless otherwise ordered, the first postconfirmation status report must be filed within 120 days of entry of the order confirming the plan. Subsequent reports will be due on the 15th day of the month

67

following each successive 120-day reporting period until a final decree is entered.

(d) Effect of Failure to File Postconfirmation Reports. The failure to file timely postconfirmation status reports is cause for dismissal or conversion to a case under chapter 7 pursuant to 11 U.S.C. § 1112(b).

(e) Effect of Conversion to Chapter 7. Upon confirmation of a chapter 11 plan, the debtor, or plan proponent whose plan was confirmed, must lodge a form of confirmation order that includes a provision, consistent with 11 U.S.C. § 1141(b), that, unless otherwise provided for in the plan, if the case is converted to one under chapter 7, the property of the reorganized debtor, or of any liquidation or litigation trust, or of any other successor to the estate under the plan, that has not been distributed under the plan will be vested in the chapter 7 estate, except for property that would have been excluded from the estate if the case had always been one under chapter 7.

LBR 3020-2. POSTCONFIRMATION REQUIREMENTS IN A SUBCHAPTER V CASE

(a) Applicability. This LBR only applies to cases proceeding under subchapter V of chapter 11 of the Bankruptcy Code.

(b) Consensual Plan. Upon confirmation of a consensual plan, unless the confirmation order provides otherwise, the following rules and procedures apply:

(1) Postconfirmation Reporting. Upon confirmation of a consensual plan, the debtor
must file and serve postconfirmation quarterly reports in accordance with LBR
3020-1(b) and (c). If the debtor is removed as debtor in possession, the
subchapter V trustee in possession must file and serve postconfirmation
quarterly reports, unless the Court orders otherwise.

(2) Substantial Consummation Report. Not later than 14 days after the date of the
entry of the order confirming the plan, the debtor must file a report stating
whether the plan has been substantially consummated and, if not, providing a
projected date when substantial consummation is expected to occur and the
steps necessary for substantial consummation to occur.

(3) Extensions of Projected Date of Substantial Consummation. If the projected
date for substantial consummation must be extended, the debtor must file a
supplemental report specifying the new projected date, the progress made
toward consummation of the plan, the steps necessary for substantial
consummation to occur, and the reasons for the delay. The supplemental report
must be filed and served as soon as possible, but at least not later than 14 days
after the previously projected date of substantial consummation.

(4) Notice of Substantial Consummation. Not later than 14 days after the debtor’s
consensual plan has been substantially consummated, the debtor must file a
notice of substantial consummation and serve this notice on the subchapter V
trustee, the United States trustee, and the 20 largest unsecured creditors.

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LBR 3022-2

(5) Termination of the Subchapter V Trustee’s Services. Upon substantial
consummation of a consensual plan, the subchapter V trustee’s services will
terminate automatically, unless otherwise provided in the plan or ordered by the
Court.

(c) Nonconsensual Plan . Upon confirmation of a nonconsensual plan, unless the confirmation order provides otherwise, the following rules and procedures apply:

(1) Distributions. The subchapter V trustee must collect plan payments and make
distributions to creditors, unless otherwise provided for in the plan or
confirmation order.

(2) Postconfirmation Reporting. Upon confirmation of a nonconsensual plan, the
subchapter V trustee must file and serve postconfirmation quarterly reports in
accordance with LBR 3020-1(b) and (c).

LBR 3022-1. FINAL DECREE AND CLOSING A CHAPTER 11 CASE

(a) Motion for Final Decree. After an estate is fully administered in a chapter 11 reorganization case, a reorganized debtor, chapter 11 trustee, or subchapter V trustee in possession may file a motion for a final decree using the procedure of LBR 9013-1(d) or (o). Notice of the motion must be served upon all parties upon whom the plan was served.

(b) Motion for Order Closing Case on Interim Basis. If a chapter 11 estate is substantially consummated, but not fully administered, the reorganized debtor, chapter 11 trustee, or subchapter V trustee in possession, may file a motion for an order closing case on an interim basis using the procedure of LBR 9013-1(d) or (o).

LBR 3022-2. FULL ADMINISTRATION IN A SUBCHAPTER V CASE

(a) Applicability.

This LBR only applies to cases proceeding under subchapter V of chapter 11 of the Bankruptcy Code.

(b) Consensual Plan.

(1) Subchapter V Final Report and Account. Within 60 days after the final
distribution to creditors under a consensual plan, the debtor must file with the
Court, and serve upon all parties upon whom the plan was served, a
subchapter V final report and account of administration of the estate (UST Form
101-11(V)-FR) (“Subchapter V Final Report and Account”), whereupon the
debtor must seek entry of a final decree closing the case.

(2) Final Decree. After the debtor has filed its Subchapter V Final Report and
Account, the debtor must file a motion for final decree pursuant to LBR 3022-
1(a) supported by a declaration under penalty of perjury showing that: (A) the
services of the subchapter V trustee have terminated, (B) the estate has been

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fully administered, (C) all adversary proceedings, contested matters and other disputes, including appeals, have been resolved by a final, non-appealable order or dismissed, and (D) there are no remaining matters for which the Court must continue to exercise jurisdiction. The debtor must also lodge a proposed final decree. Nothing herein is intended to prevent the debtor from seeking interim or early closure of the case.

(c) Nonconsensual Plan.

(1) Subchapter V Final Report and Account. Within 60 days after the final
distribution to creditors under a nonconsensual plan, the subchapter V trustee
must file with the Court, and serve upon all parties upon whom the plan was
served, a Subchapter V Final Report and Account of administration of the
estate, whereupon the subchapter V trustee must seek entry of a final decree
closing the case.

(2) Final Decree. Upon the subchapter V trustee’s filing of a Subchapter V Final
Report and Account in a case in which the plan is a confirmed nonconsensual
plan, the subchapter V trustee must file a motion for final decree pursuant to
LBR 3022-1(a) supported by a declaration under penalty of perjury showing
that: (A) the estate has been fully administered, (B) all adversary proceedings,
contested matters, and other disputes, including appeals, have been resolved by
a final, non-appealable order or dismissed, and (C) there are no remaining
matters for which the Court must continue to exercise jurisdiction. The
subchapter V trustee must also lodge a proposed final decree.

(3) Termination of the Subchapter V Trustee’s Services. Upon entry of the final
decree, the subchapter V trustee’s services will terminate.

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