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9070 Part VII - Adversary Proceedings Service of Summons on the United States and Its Agencies Pre-Trial Procedures Filing and Service of Discovery Materials Motions to Compel Dismissal of Underlying Bankruptcy Case Complaints to Deny or Revoke Discharge: Dismissal or Settlement Default Judgment Motions for Summary Judgment Execution/Enforcement of Judgments Part IX - General Provisions and Motion Practice Motions for Relief from Stay Procedure for Obtaining Shortened and/or Limited Notice Emergency Motions Representation and Appearances Signing of Papers Filing Motions and Objections to Motions Certificate of Service Stipulations or Agreements Proposed Orders Briefs Applicability of Bankruptcy Rule 7016 Jury Trials Stipulations and Settlements Removal Transmittal of Pleadings, Papers, Objections and Other Papers to the United States Trustee Mailing Addresses for United States and Various Government Agencies Privacy Protection for Filings Made with the Court Disposition of Exhibits Appendix A - Repealed Orders 4 United States Bankruptcy Court Southern District of Illinois LOCAL RULES OF BANKRUPTCY PROCEDURE INTRODUCTION - SCOPE OF RULES L.R. 1001 - Scope of Rules and Forms; Short Title.

A. Title and Citation.

These Rules are adopted pursuant to Rule 9029 of the Federal Rules of Bankruptcy Procedure to govern the local practice and procedures before the United States Bankruptcy Court for the Southern District of Illinois (the “Court”). These Rules shall be known as the “Local Rules of the Bankruptcy Court for the Southern District of Illinois” (the “Rules”) and shall be cited as “S.D. Ill. LBR _____” herein. These Rules may be amended or supplemented from time to time by additional orders as the Court deems necessary.

All references to provisions of the Bankruptcy Code are to Title 11 of the United States Code. All references to the District Court are to the United States District Court for the Southern District of Illinois.

B. C. D. Application.

These Rules shall apply to all cases and proceedings in the United States Bankruptcy Court for the Southern District of Illinois except to the extent the Court determines application of the Rules would not be feasible or as otherwise more specifically provided herein. Failure to comply with these Rules may result in denial of the relief requested, dismissal, or other sanctions. To the extent that an order in a specific case conflicts with these Rules, the order in the case shall control. Effective Date.

These Rules become effective on June 1, 2012. The Rules governing chapter 13 plan contents shall be the rules in effect at the time the plan was originally filed. For previous versions of the Court’s website at the www.ilsb.uscourts.gov or contact the Court. rules, check Relationship to Prior Rules/Orders; Actions Pending on Effective Date. These Rules supersede all previous rules and any conflicting Orders promulgated by this Court or any Judge of this Court.

They shall govern all applicable proceedings brought in this Court after they take effect, and shall apply to all pending proceedings at the time they take effect, except to the extent that the Court determines that application thereof would not be feasible or would work injustice, in which event the former rules shall govern. The General Orders, Standing Orders, and Administrative Orders listed in Appendix A of these Rules are repealed. The superseding of any prior rule and repealing of any order shall not affect any act done pursuant to or obviate any act required thereby.

E. Modification or Suspension of Rules.

In specific cases or proceedings, the Court, upon its own motion or the motion of any party, may suspend or modify any of these Rules if the interests of justice so require. 5 F. G. H. I. District Court Rules. Except as otherwise provided in these Rules, or as ordered by the Court in a particular case, the Local Rules of the United States District Court for the Southern District of Illinois are adopted and incorporated herein and shall apply to proceedings in the United States Bankruptcy Court for the Southern District of Illinois. Electronic Filing Rules and Chapter 13 Procedures Manual.

The rules and procedures governing electronic filing are contained in a separate document entitled “Electronic Filing Rules.” In addition, supplemental procedures, guidelines, and instructions applicable to chapter 13 cases are contained in a separate “Chapter 13 Procedures Manual.” The Electronic Filing Rules and the Chapter 13 Procedures Manual are incorporated into and made a part of these Rules. Both will be maintained on the Court’s website at www.ilsb.uscourts.gov. Reference in these Rules to any form, guideline or instruction in the Electronic Filing Rules or Chapter 13 Procedures Manual shall refer to the then-applicable form, guideline or instruction maintained by the Clerk of Court. All parties before the Court shall follow the procedures, guidelines and instructions set forth in the Electronic Filing Rules and Chapter 13 Procedures Manual and may be sanctioned for failing to do so.

Conforming Changes. To the extent that the Federal Rules of Bankruptcy Procedure are revised from time to time, the Clerk of Court may revise these Rules to conform to such changes. The Clerk of Court will issue a public notice to advise of any such revision. Nothing in these Rules precludes this Court from entering General Orders, Standing Orders, Administrative Orders or guidelines to supplement these Rules.

PART I. COMMENCEMENT OF CASE; PROCEEDINGS RELATED TO PETITION AND ORDER FOR RELIEF L.R. 1002-1 - New Case Filing Information and PDF Documents. In any new case filed in this Court, if the information that is entered in the Court’s electronic filing system is inconsistent with the attached PDF document(s), the information in the PDF document(s) will be considered the correct information and the PDF document(s) will control. The Clerk’s office is authorized to correct the information in the electronic case file to match the information in the PDF document(s). If notices or other documents are issued before the information in the electronic case file is corrected, and those notices or documents contain incorrect information, it is the responsibility of the person filing the case to notify creditors and parties in interest of this fact.

L.R. 1002-2 - Matrix. A. The petitioner must file with the petition a mailing matrix of creditors listing the complete name, address, and zip code of each creditor. The matrix must be in a format prescribed in this Court’s Style Guide for Electronic Case Filing, which can be found on the Court’s website at www.ilsb.uscourts.gov. Attorneys who are registered CM/ECF participants are required to upload the creditor matrix in CM/ECF upon filing a petition 6 for the commencement of a case.

Pro se debtors must submit the matrix at the time of filing a petition for the commencement of a case, which shall be used for scanning the creditors into the computer. B. When an attorney electronically files a petition as an emergency filing, the attorney must upload into CM/ECF the creditor information necessary to provide proper notice to all scheduled creditors. When a pro se debtor files a petition as an emergency filing, the debtor must submit the matrix at the time of filing, which shall be used for scanning the creditors into the computer. C. The debtor shall also verify that the matrix includes all creditors listed on the schedules and submit, along with the petition, an appropriate verification similar to the one located on the Court’s website at www.ilsb.uscourts.gov.

L.R. 1003 - Involuntary Petition. The burden to prosecute an involuntary petition rests with the petitioning creditors. Debtor shall file the schedules, statements and other documents required by Rule 1007 of the Federal Rules of Bankruptcy Procedure within 14 days of the entry of the order for relief. If debtor fails to do so, the petitioning creditors shall have 14 days thereafter to file the required schedules, statements and documents or a motion to appoint a responsible party to perform the duties of debtor.

In the event the petitioning creditors fail to file either the required schedules and documents or a motion to appoint a responsible party, the Court may dismiss the involuntary petition for lack of prosecution. L.R. 1006 - Filing Fee.

A. Payment of Filing Fee in Installments.

Fifty percent of the filing fee shall be due at the time the petition is filed for debtors applying to pay the filing fee in installments. B. Waiver of Filing Fee. the Court’s website at The Court will post on www.ilsb.uscourts.gov the applicable poverty guidelines to be used in determining whether a debtor qualifies for a fee waiver pursuant to 28 U.S.C. § 1930(f). The order granting In Forma Pauperis status may be vacated if developments in the case demonstrate that waiver of the fee was unwarranted. L.R. 1007-1 - Required Information and Documentation for Case Trustees.

A. Information to be Served on Trustee.

For a list of the specific information and documents required by each Trustee, as well as whether the Trustee requires electronic or paper submission, consult the Court’s website at www.ilsb.uscourts.gov.

B. Other Documentation.

The debtor shall provide the documentation required by Rule 4002(b)(2) of the Federal Rules of Bankruptcy Procedure in the time and manner set forth by that Rule. If the debtor twice fails to provide the documentation in a timely manner, the case will be dismissed without further hearing or notice, upon the filing of a motion to dismiss by the Trustee. The 10-day period set forth in Section 704(b)(1)(A) of the Bankruptcy Code shall be 10 days after the conclusion of the 341 meeting of creditors. 7 L.R. 1007-2 - Bankruptcy Code § 521(a)(1) Filing Requirements.

Effective as to cases filed on or after October 17, 2005, copies of all payment advices, or other evidence of payment, received by the debtor from any employer(s) of the debtor within 60 days prior to the date of the filing of the bankruptcy petition, (1) shall not be filed with the Court unless otherwise ordered; and (2) shall be provided to the Trustee, the United States Trustee if no Trustee has been appointed, and to any creditor who timely requests copies of payment advices, or other evidence of payment, at least 7 days before the first scheduled 341 meeting of creditors. To be considered timely, a creditor’s request must be received at least 14 days before the first scheduled 341 meeting.

A. Bankruptcy Code § 521(a)(1)(B)(iv).

The requirements of Section 521(a)(1)(B)(iv) of the Bankruptcy Code (that debtor provide copies of all payment advices or other evidence of payment received within 60 days before the date of the filing of the petition) is satisfied by providing to the Trustee (or the United States Trustee in a case where no Trustee has been appointed) at least 7 days before the first scheduled 341 meeting of creditors: 1. 2. 3. 4.

Payment advice(s) or other evidence of payment (which may be satisfied by providing less than “all payment advices or other evidence of payment received within 60 days before the date of the filing of the petition ...” - e.g. by providing a year-to-date statement that includes payments received within 60 days of the petition), or A verified statement that the debtor did not receive payments to which Section 521(a)(1)(B)(iv) of the Bankruptcy Code applies. Pay advices or other evidence of payment shall be arranged (1) separately for each debtor and (2) chronologically for each different employer. Notwithstanding the foregoing, the Trustee may require that 6 months of pay advices or their evidence of payment (as defined in subsection 1 above) be provided to verify the current monthly income listed on Official Form B22A or B22C, or on Official Form 122A-1 or 122C-1 (effective 12/1/2015). Failure to provide this documentation shall not delay the commencement of the 341 meeting of creditors.

In no event shall the documents required by Section 521(a)(1)(B)(iv) of the Bankruptcy Code be provided later than 45 days after the date of the filing of the petition. If the 341 meeting is not set within 45 days of the filing of the petition, the 45-day deadline for providing payment advices to the Trustee (or the United States Trustee, if applicable) still applies. If the Trustee or the United States Trustee continues the 341 meeting to receive these documents, such continuance shall not be deemed a request or consent to extend the deadline of Section 521(i) of the Bankruptcy Code. Nothing in this Rule shall be construed as requiring the Trustee or the United States Trustee to continue the 341 meeting.

Failure to provide the documents within the 45-day deadline shall be grounds for the Trustee or the United States Trustee (if applicable) to request dismissal. If the case is dismissed following such a request by the Trustee or the United States Trustee, 8 and the debtor believes the case was dismissed in error, the debtor shall file any motion to reinstate the case within 14 days of the entry of the dismissal order. A case that has been dismissed for failure to file a required document or provide a required document to the Trustee or the United States Trustee will not be considered to be a case dismissed in error. Bankruptcy Code § 521(a)(1)(B)(v).

The requirement of Section 521(a)(1)(B)(v) of the Bankruptcy Code (statement of the amount of monthly net income, itemized to show how the amount is calculated) is satisfied by including such information in Schedule I. Bankruptcy Code § 521(a)(1)(B)(vi). The requirement of Section 521(a)(1)(B)(vi) of the Bankruptcy Code (a statement disclosing any reasonably anticipated increase in income or expenditures over the next 12-month period following the date of the filing of the petition) is satisfied by including such information on the appropriate line item on Schedule I and Schedule J and/or Schedule J-2 (effective 12/1/2015). B. C. L.R. 1007-3 - Bankruptcy Code § 521 Tax Returns and Requests. Debtor shall provide the Trustee (or the United States Trustee if no Trustee has been appointed), no later than 7 days prior to the 341 meeting, a copy of the debtor’s most recently filed federal and state tax returns, or a verified statement that such returns do not exist and the reason why the returns do not exist.

The tax returns and/or verified statement shall not be filed with the Court. On request of a creditor under Section 521(e)(2)(A)(ii) of the Bankruptcy Code, the debtor shall provide copies of such tax returns to the creditor but shall not file the returns or an Exhibit Summary thereof with the Court. Failure to provide the Trustee (or the United States Trustee if applicable) with the required tax returns or a verified statement that such returns do not exist as set forth in this Rule will result in the dismissal of the case without further notice, upon the filing of a motion to dismiss by the Trustee or the United States Trustee. Nothing in this Rule shall be construed as requiring the Trustee or the United States Trustee to continue the 341 meeting.

L.R. 1007-4 - Adoption of Interim Rule 1007-I of the Federal Rules of Bankruptcy Procedure. Interim Rule 1007-I of the Federal Rules of Bankruptcy Procedure, along with all amendments thereto past and future, is adopted by this Court, effective December 19, 2008. L.R. 1009 - Amended Schedules and/or Matrix.

A. Adding Creditors.

If an amendment adds creditors, attorneys who are registered CM/ECF participants are required to upload creditor information for the additional creditors at the time of filing the amended document. B. Content of Amended Schedules D, E, F, E/F (effective 12/1/2015), or Matrix. Amended Schedules D, E, F, E/F, and/or an amended matrix shall include only the names and addresses that have been newly added, or for which information has changed. Along with the amended schedule and/or matrix, the debtor shall file a signed declaration and/or verification (as applicable) for the amended schedule and/or matrix.

If the debtor is deleting a creditor, the debtor must so state. 9 C. Service. The debtor shall serve the amended schedule and/or the amended matrix on the Trustee and on any entity affected thereby, in compliance with Rule 1009(a) of the Federal Rules of Bankruptcy Procedure. In addition, when the amendment adds creditors, the debtor shall also serve, on any newly added creditor, a copy of the last issued notice of commencement of case, and in any asset case, a proof of claim form and notice of the claims bar date.

In chapter 13 cases, the debtor shall also serve a copy of the current chapter 13 plan on every newly added creditor included in the amended document. The debtor shall file a certificate of service listing the documents served. The debtor shall serve a copy of the amended schedules and/or matrix on any party requesting a copy of these documents.

D. Large Chapter 11 Cases.

In any large chapter 11 case, or a chapter 7 case that has been converted from a chapter 11 case, in which the Court authorizes the debtor or a noticing agent to provide notice and maintain the creditor matrix, the following procedures shall apply to amended matrices: 1. 2. 3. When the matrix needs to be amended or corrected, the debtor shall file, in PDF format the amended or corrected matrix in the CM/ECF system.

The debtor shall not upload this amended matrix into the CM/ECF system. The filed (not uploaded) amended matrix shall include all names and addresses comprising the most current list of the debtor’s creditors. To file the amended or corrected matrix, the debtor shall use the “Amended Creditor Matrix” event. On conversion of a chapter 11 case or within 7 days of any request from the Court or any other party, the debtor shall file, in PDF format, and upload (as a text file) an amended matrix as set forth in these Rules.

L.R. 1015 - Joint Administration and Affiliated Debtor Cases. The debtor or a party in interest may request by motion that cases in this Court regarding a debtor and its affiliate(s) be jointly administered. A motion for joint administration shall be filed as early in the case as possible. Unnecessary delay may result in the Court’s denial of the motion for joint administration.

Such a motion shall be served on all creditors, the Trustee (if any), the Trustee’s attorney, and any examiner in the case. The motion for joint administration shall be filed in the case requested to be designated as the lead case. Joint administration of a debtor and its affiliates, unless otherwise ordered by the Court, shall not be a substantive consolidation of the cases.

A. B. Designation of Lead Case.

Unless otherwise stated in the order granting joint administration, when multiple affiliated cases are filed, the first case filed (i.e., the case having the lowest case number) shall be designated as the lead case. Docket. A single case docket and case file shall be maintained in the lead case after entry of the order for joint administration. 10 C. D. Style of Court Documents.

Pleadings and other documents filed after entry of the order for joint administration shall be styled with the caption of the lead case, shall include the affiliated debtors from the jointly administered cases, and shall set forth the bankruptcy docket number of the lead case. Such documents shall be filed in the lead case only. Claims. A separate claims register shall be maintained for each affiliated case.

A proof of claim shall specifically state the name and case number of the debtor against which the claim is asserted. If claims are asserted against more than one of the affiliated debtors in a jointly administered case, a separate original proof of claim shall be filed in each case. L.R. 1017 - Motions to Reinstate Following Dismissal on Trustee’s Motion to Dismiss for Failure to Make Plan Payments. The motion shall state the reason for failure to make payments and how debtor proposes to cure the arrearage.

The motion shall also state whether the case was previously dismissed and reinstated and shall provide dates of any prior dismissals and orders of reinstatement. The debtor shall serve a copy of the motion on the Trustee, United States Trustee, and all parties in interest. No later than 7 days after the filing of the motion, the Trustee shall file a response to the motion, stating whether the Trustee consents or opposes reinstatement. Upon the filing of the Trustee’s consent, the case may be reinstated without hearing.

PART II.

ADMINISTRATION AND NOTICE L.R. 2002 - Service/Noticing.

A. Noticing by Proponent.

The proponent of the following matters will serve the notice required by Rule 2002 of the Federal Rules of Bankruptcy Procedure and shall forthwith file the notice with a certificate of service (the list is not intended to be all inclusive): 1. 2. 3. 4.

5. A proposed use, sale or lease of property of the estate other than in the ordinary course of business. The time fixed to accept or reject a proposed modification of a chapter 12 or 13 plan. A motion to allow temporary cessation/abatement of plan payments to the Trustee.

An application for compensation or reimbursement of expenses totaling in excess of $1,000.00. A motion to compromise or settle a controversy, other than approval of an agreement pursuant to Rule 4001(d) of the Federal Rules of Bankruptcy Procedure. 11 6. 7.

8. 9. A motion to retain a tax refund. A motion for leave to modify/amend a mortgage.

A motion for abandonment. A motion to redeem property. 10. A motion to avoid lien under Section 522(f) of the Bankruptcy Code.

B. Notices to the United States and its Agencies.

Whenever these Rules or the Federal Rules of Bankruptcy Procedure require that notice be sent to the United States and/or its agencies, the notice shall be addressed in accordance with this Court’s Electronic Filing Rules, which can be found on the Court’s website at www.ilsb.uscourts.gov.

C. Mailing List.

When the proponent is required to provide notice to all creditors, the proponent shall insure the current mailing matrix is used.

D. E. Certificate of Service.

A certificate of service shall contain the full name and address of the persons/entities served by U.S. mail, or, if applicable, the certificate may state that “all creditors listed on the matrix have been served.” A certificate of service shall contain the full name of the persons/entities served electronically as required by this Court’s the Court’s website at Electronic Filing Rules, which can be www.ilsb.uscourts.gov. The certificate of service shall be signed by the person completing service. found on Notice of Preferred Addresses under Bankruptcy Code § 342(f) and National Creditor Registry Service. An entity and a notice provider may agree that when the notice provider is directed by the Court to give a notice to that entity, the notice provider shall give the notice to the entity in the manner agreed to and at the address or addresses the entity supplies to the notice provider. That address is conclusively presumed to be a proper address for the notice.

The notice provider’s failure to use the supplied address does not invalidate any notice that is otherwise effective under applicable law. The filing of a notice of preferred address pursuant to Section 342(f) of the Bankruptcy Code by a creditor directly with the agency or agencies that provide noticing services for the Bankruptcy Court will constitute the filing of such a notice with the Court. Registration with the National Creditor Registration Service must be accomplished through the agency that provides noticing services for the Bankruptcy Court. Forms and registration information are available at https://ncrs.uscourts.gov.

L.R. 2003 - Bankruptcy Code § 341 Meetings.

A. Requests to Reschedule § 341 Meeting.

All requests to continue or reschedule 341 meetings must first be directed to the United States Trustee in chapter 11 cases and to the assigned Trustee or interim Trustee, as appropriate, in chapter 7, 12 and 13 cases. Upon agreement between the proponent of the continuance and the appropriate Trustee, it is the 12 B. C. responsibility of the proponent to immediately serve notice to all creditors and parties in interest, including the Court, of the new date, time and place of the rescheduled 341 meeting. The proponent shall file a certificate of service with the notice. Requests to Reschedule § 341 Meetings within 7 Days of Meeting.

Any request by the debtor to reschedule a 341 meeting within 7 days of the scheduled meeting will require either the debtor or his/her attorney to appear at the scheduled meeting to request that the meeting be rescheduled. If the appropriate Trustee consents to the rescheduling and announces at the regularly scheduled 341 meeting the new 341 meeting date, no further notice to the creditors and parties in interest is required, except that the appropriate Trustee shall advise the Court of the rescheduled hearing date, time and place by making a docket entry using the Court’s CM/ECF system. Continuance of the Bankruptcy Code § 341 Meeting Announced at Meeting. The Trustee or the United States Trustee may continue a 341 meeting from time to time by announcement at the regularly scheduled 341 meeting, with no further notice to the creditors and parties in interest being required, except that the appropriate Trustee shall advise the Court of the rescheduled hearing date, time and place by making a docket entry using the Court’s CM/ECF system.

The minimum amount of time for continuing a 341 meeting is 7 days.

D. Waiver of Attendance.

A request by a debtor to be excused from attendance at the 341 meeting of creditors must be made in writing to the Office of the United States Trustee and copied to the case Trustee. The United States Trustee’s acceptable grounds for waiver include: medical condition, imprisonment and military assignments that prevent attendance. Any application for waiver of attendance must include supporting documentation, e.g., doctor’s letter, court order or military order. Waiver of personal appearance and permission to attend a 341 meeting by telephone must also be approved by the United States Trustee.

To appear by telephone, the debtor must be sworn in and identified by a notary, court reporter or other person permitted by law to administer an oath.

E. F. Disputes.

Prior to filing a motion seeking continuance of a 341 meeting or requesting that a joint debtor be excused from a 341 meeting, the movant shall seek such relief from the Trustee. The motion shall state relief from the Trustee has been denied. Failure to do so may result in the denial of the motion by the Court. Failure to Attend the Bankruptcy Code § 341 Meeting.

If the debtor in a voluntary case fails to attend the first scheduled 341 meeting without being excused, the Trustee shall list the date, time, and location for a continued 341 meeting by making a docket entry within the Court’s CM/ECF system. The minimum amount of time for continuing a 341 meeting is 7 days. If the debtor fails to appear at the second 341 meeting without being excused, the Trustee may file a motion asking that the case be dismissed. The Court may consider the Trustee’s motion without a hearing.

L.R. 2004 - Motions under Rule 2004 of the Federal Rules of Bankruptcy Procedure. 13 A. Motion for Examination and/or Production. A motion under Rule 2004 of the Federal Rules of Bankruptcy Procedure may contain a request for an examination or for production of documents. In addition, in a motion for an examination, the moving party may request that the examinee be required to produce documents at the time and place of the examination or at such other time and place as set forth in the motion.

B. C. D. Conference Required.

Prior to filing a motion for examination and/or for production of documents under Rule 2004 of the Federal Rules of Bankruptcy Procedure the moving party shall attempt to confer (in person or telephonically) with the proposed examinee or the examinee’s counsel (if represented by counsel) to arrange for a mutually agreeable date, time, place and scope of an examination and/or production. If an agreement is reached, no motion shall be required. Certification of Conference Required. All motions for examination and/or production under this Local Rule shall include a certification of the moving party that either (1) a conference was held as required and no agreement was reached, or (2) a conference was not held and an explanation as to why no conference was held.

Service and Notice Requirements. In addition to any other rules of service that generally apply, all motions for examination and/or production of documents shall be served upon the following parties, through their counsel, if represented: (1) the debtor; (2) the Trustee; (3) the United States Trustee; (4) all official committees; and (5) the proposed examinee and/or party producing documents. All such motions shall be accompanied by a notice of motion setting forth (1) an objection, response or answer deadline of 7 days from filing of the motion; and (2) the date, time and place of the hearing in the event an objection is filed. L.R. 2015-1 - Duty of Chapter 7 Trustee upon Sale of Property.

The Trustee shall file, within 14 days of the sale, a report of sale stating the property sold, to whom it was sold and the dollar amount for which the property was sold. An auctioneer’s report may be substituted for the foregoing. L.R. 2015-2 - Duty of Chapter 7 Trustee upon Dismissal. In all dismissed cases, the Trustee shall file, within 14 days of the date of dismissal, a Report of Receipts and Disbursements, or, if applicable, a Report of No Receipts and Disbursements.

L.R. 2015-3 - Duty of Chapter 7 Trustee to File Interim Reports. The chapter 7 Trustee shall file an Interim Report as frequently as required by the United States Trustee unless a Final Distribution has been filed and approved by the Court. L.R. 2015-4 - Duty of Debtor in Chapter 11 Case.

A. Operating Reports.

Chapter 11 debtors shall provide monthly operating reports to counsel for the Unsecured Creditors Committee and upon request, to any creditor.

B. Insurance Requirements - Debtor-in-Possession.

1. General Requirements. All debtors in a chapter 11 case in which no Trustee has been appointed shall: 14 a. b. c. d. insure all estate assets against physical damage and loss with policy limits covering the asset values stated in the debtor’s schedules; if applicable, maintain liability coverage for the debtor’s operations and businesses; if applicable, and as appropriate or customary for the debtor’s industry, maintain additional types of insurance (workers compensation, products liability, or professional liability); and require insurer(s) to notify the United States Trustee of any insurance claims or lapses of coverage. 2.

Proof of Insurance. Upon request of any party, the Trustee, or the United States Trustee, the debtor shall provide proof of insurance, which shall include a certificate of insurance, binder, or other document(s) from the insurance carrier stating amounts, types and period of coverage, and notification of any secured party as loss payee. Failure to provide such proof shall give rise to a presumption that no insurance is in effect. L.R. 2015-5 - Duty of Debtor in Chapter 12 Case to Disclose Disposable Income.

On the first anniversary of confirmation of a chapter 12 plan and not less frequently than annually thereafter, the debtor shall account to the Trustee for all disposable income as defined in Section 1225(b)(2) of the Bankruptcy Code. The debtor shall provide the Trustee with reasonable information, summaries, and documentation evidencing all receipts and disbursements of money and property over the prior year to enable the Trustee to determine whether the debtor has disposable income which should be applied to make plan payments under Section 1225(b)(1)(B) of the Bankruptcy Code. Failure to comply with this Rule shall be cause for dismissal or other appropriate action. Nothing in this Rule precludes the Trustee from obtaining an order of Court requiring disclosures more frequently than annually.

L.R. 2016-1 - Compensation of Professionals.

A. Disclosure of Compensation and Pre-Petition Retainers.

Pursuant to Section 329 of the Bankruptcy Code and Rule 2016(b) of the Federal Rules of Bankruptcy Procedure, an attorney representing a debtor in a case under any chapter shall file with the petition a statement disclosing compensation paid or agreed to be paid to such attorney for services in contemplation of or in connection with the case. Counsel shall serve the disclosure on the Trustee and United States Trustee. In chapter 13 cases, counsel shall serve only the Trustee. Until a case is closed, a supplemental fee disclosure statement shall be filed and served as required in this Rule either no later than 14 days after any payment not previously disclosed in a properly filed Disclosure of Compensation for Attorney for Debtor pursuant to Rule 2016(b) of the Federal Rules of Bankruptcy Procedure, or no later than 14 days after the agreement for such a payment.

Monies received but not subsequently disclosed are subject to disgorgement.

B. Applications for Compensation.

Except in flat fee chapter 13 cases as governed by the Chapter 13 Procedures Manual, all professionals employed under Sections 327 and 1103 of the Bankruptcy Code shall file an application for allowance of compensation following the guidelines in In re Weidau’s, Inc., 78 B.R. 904 (Bankr. S.D. Ill.1987). Applications 15 for compensation may be denied if the professional seeking compensation has failed to obtain an order approving employment. L.R. 2016-2 - Payment of Professional Fees in Chapter 11 Cases.

A. General Requirements in Chapter 11 Cases.

The requirements of Rule 2016-1 of these Rules apply in chapter 11 cases.

B. Monthly Bills (Fee Statements) in Chapter 11 Cases.

If debtor’s counsel desires to receive compensation on a monthly basis prior to allowance on an interim application, counsel shall file a motion to establish procedures for interim compensation and reimbursement of expenses of professionals. At the time the motion is filed, a separate notice shall be filed allowing 14 days from the date of filing to file objections. The motion and notice shall be served on all interested parties, including, but not limited to, the debtor; the United States Trustee; the Trustee (if any); the Trustee’s attorney (if any); and counsel for the unsecured creditors committee or, if counsel has not been appointed, to the unsecured creditors committee. If no committee has been appointed, service shall also be made to the twenty largest unsecured creditors.

All monthly payments of fees and expenses are subject to approval, modifications or disgorgement on interim application, which may not be filed sooner than every 120 days and not less frequently than every 180 days. In any case that has been pending more than 180 days, no professional shall be permitted to receive payment on a monthly bill or fee statement unless such professional has filed one or more interim fee applications covering all services provided more than 180 days before the date of such monthly bill or fee statement. Counsel may file a motion to extend this period. L.R. 2090 - Attorney Admission.

A. General Admission to Practice before the Bankruptcy Court.

The bar of this Court shall consist of any attorney in good standing to practice before the United States District Court for the Southern District of Illinois. The requirements for attorney admission and standards concerning attorney discipline outlined in District Court’s Local Rules 83.1 through 83.4 are adopted for this Court. Attorneys are required to read and remain familiar with: 1. 2.

3. 4. 5. 6.

7. These Local Rules, the Electronic Filing Rules, and the Chapter 13 Procedures Manual; Local Rules of the United States District Court for the Southern District of Illinois, including the Rules of Disciplinary Enforcement, which can be found at www.ilsd.uscourts.gov; Local Rules of Procedure for the Seventh Circuit Court of Appeals, which can be found at www.ca7.uscourts.gov; Bankruptcy Code and Federal Rules of Bankruptcy Procedure; Federal Rules of Civil Procedure; Federal Rules of Evidence; and Federal Rules of Appellate Procedure. 16 B. C. Admission Pro Hac Vice. Any attorney licensed to practice in any state of the United States or the District of Columbia who does not wish to be admitted generally, but wishes to be admitted for the purpose of a specific bankruptcy case or adversary proceeding only, must file a Motion to Appear Pro Hac Vice.

The motion must contain a verified statement setting forth the state and federal bars of which the movant is a member in good standing and the bar number, if any, issued by each jurisdiction; and be accompanied by the filing fee for pro hac vice motions. Upon entry of the Court order granting the motion, the attorney will be permitted to appear of record and to participate pro hac vice. Local Counsel. It shall not be necessary for parties appearing by non-resident counsel to retain local counsel to represent them.

However, if local counsel is retained and appears in Court for non-resident counsel, then the Clerk of the Court shall enter the appearance of local counsel in the Court record. At each appearance, local counsel shall be fully apprised of, and conversant with, the facts and law concerning any case in which they appear. Local counsel shall also be required to have full authority to represent their clients as if they were non-resident counsel. L.R. 2091 - Withdrawal and Substitution of Counsel.

A. Except as provided in subsection C of this Rule, an attorney of record may withdraw from a case, adversary proceeding, or contested matter only by way of a motion and order of the Court granting the attorney leave to withdraw. A motion to withdraw must be served upon (1) the attorney’s client, (2) the Trustee, (3) the United States Trustee and (4) all persons and entities having entered their appearances in the case, adversary proceeding or contested matter.

B. C. D. E.

An order authorizing an attorney of record to withdraw may be granted without hearing if no objections to the motion to withdraw are filed within 7 days following the filing of the motion. If an objection to a motion to withdraw is filed, the Court will schedule a hearing to consider the motion and any objections thereto. If new counsel is to be simultaneously substituted for a withdrawing attorney, then no motion to withdraw shall be necessary. Rather, a Notice for Substitution of Counsel shall be filed with the Court.

Furthermore, the substituting counsel shall file a Form 2016(b) Disclosure of Compensation. In a case under chapter 13, the Trustee shall cease payments to withdrawing counsel for the debtor upon entry of an order authorizing withdrawal or upon the filing of a Notice for Substitution of Counsel, as the case may be. In a case under chapter 13, substitute counsel for the debtor shall be bound by withdrawing counsel’s fee election unless the Court, on motion and for cause, orders otherwise. As such, absent a Court order to the contrary, and an amended plan if appropriate, the chapter 13 Trustee shall only disburse to substitute counsel those attorney’s fees remaining unpaid, if any.

17 L.R. 2092 - Professional Conduct and Obligations of Attorneys.

A. Professional Conduct.

The professional conduct of attorneys appearing before this Court shall be governed by the Rules of Professional Conduct adopted by the Supreme Court of Illinois, the Rules of Disciplinary Enforcement of the United States District Court for the Southern District of Illinois, and these Rules.

B. Duty to Confer.

Every attorney appearing before this Court is required to attempt, in good faith, to communicate with opposing counsel in advance of appearing in any trial or hearing in a contested matter in an attempt to reach a settlement of the matter.

C. Obligations of Attorneys.

1. 2. With respect to hearings, attorneys shall appear at all scheduled hearings, unless: a. counsel advises the Court prior to the hearing that the matter has been resolved, and counsel has been excused; at least one party appears and reports to the Court concerning resolution of the matter; the Court has continued the matter; or the Court has otherwise excused attendance. b. c. d. Attorneys for debtors shall provide appropriate representation for the debtor at the 341 meeting. Failure of counsel to provide appropriate representation at any hearing or the 341 meeting is cause for the Court to reduce attorneys’ fees or issue other sanctions.

Counsel shall dress in courtroom attire when appearing at 341 meetings. L.R. 2094 - Attorney Discipline.

A. Disbarment or Suspension by another Court.

Any attorney that has been admitted to practice in the United States District Court for the Southern District of Illinois that becomes disbarred or suspended from practicing law by any court shall automatically be disbarred or suspended in this Court for the same length of time as the attorney’s disbarment or suspension in the original court. Any such attorney shall, immediately upon disbarment or suspension, notify the Clerk of Court of the disbarment or suspension in writing. Failure to do so shall subject the attorney to further sanctions by this Court.

B. Request for Reinstatement.

Any attorney disbarred or suspended from practicing in this Court pursuant to subsection A of this Rule may file a motion with the Court requesting that the Court reinstate the attorney before the expiration of the disbarment or suspension in the original court. The Clerk of Court will then open a miscellaneous proceeding assigned to the Chief Judge of this Court. The Court will set a hearing at which the attorney will be required to show cause as to why the attorney should be reinstated in this Court.

C. Non-exclusivity.

Nothing in this Rule shall preclude the Court from initiating its own attorney disciplinary proceedings regardless of whether an attorney has been disciplined by another court. 18 PART III - A. CLAIMS AND DISTRIBUTION TO CREDITORS L.R. 3001 - Proof of Claim - Supporting Information. Rule 3001(c)(2)(C) of the Federal Rules of Bankruptcy Procedure also applies to non-residential mortgages. L.R. 3002.1 - Notice Relating to Claims Secured by Security Interest in the Debtor’s Principal Residence.

Rule 3002.1 of the Federal Rules of Bankruptcy Procedure also applies to non-residential mortgages. L.R. 3003 - Filing Proof of Claim or Equity Security Interest in Chapter 11 Cases. Unless otherwise ordered, the claims bar date for any creditor or equity security holder whose claim or interest is not scheduled or is scheduled as disputed, contingent or unliquidated is 90 days following the first date set for the 341 meeting of creditors for non- governmental units and 180 days after the date of the order for relief for governmental units. L.R. 3004 - Filing of Claims by Debtor or Trustee.

If the debtor or Trustee files a claim on behalf of a creditor pursuant to Rule 3004 of the Federal Rules of Bankruptcy Procedure, the debtor/Trustee shall serve the claim on the affected creditor and the creditor’s attorney, if any. A certificate of service shall be filed with the claim. Any subsequent claim filed by the creditor supersedes the claim filed by the debtor/Trustee. L.R. 3007 - Objections to Claims in Chapter 13 Cases.

In a chapter 13 case, a separate notice must be filed along with an objection to claim and must be served on all interested parties in accordance with the procedures set forth in the Chapter 13 Procedures Manual. The notice the Court’s website at www.ilsb.uscourts.gov. shall comply with found on form the PART III - B. CHAPTER 11 AND 13 PLANS AND PROCEDURES FOR CONFIRMATION L.R. 3015 - Chapter 13 Plans and Procedures. The procedures, guidelines and instructions applicable to chapter 13 are contained in a separate “Chapter 13 Procedures Manual,” which can be found on the Court’s website at www.ilsb.uscourts.gov. The Manual is hereby incorporated into and made a part of these Rules.

L.R. 3016 - Required Language in Chapter 11 Plan. Every chapter 11 plan shall contain a provision describing what property, if any, of the chapter 11 estate, which vests in the debtor upon confirmation, shall revest in the chapter 7 estate in the event that the chapter 11 case is converted to a chapter 7 case following confirmation, but before substantial consummation. L.R. 3018 - Acceptance or Rejection of Chapter 11 Plan.

A. Form of Ballot.

Unless a different ballot form has been approved by the Court, the plan proponent shall use the form available on the Court’s website at www.ilsb.uscourts.gov. The ballot shall be distributed to creditors, shall include the address of the plan proponent 19 or the party designated to receive ballots, and shall indicate that ballots should be received no later than the deadline established by the Court.

B. C. Tabulation of Balloting; Report and Certification.

The plan proponent shall tabulate the ballots and prepare a balloting report. The report shall list, for each class, the total number of claims voting, total dollar amount of claims accepting, and percentage of claims voting that accept the plan. The report shall also indicate, for each class, whether it is impaired or unimpaired and whether or not the requisite vote has been attained in each class. A sample “Ballot for Accepting or Rejecting Plan” and “Report of Balloting” can be found on the Court’s website at www.ilsb.uscourts.gov.

The Report of Balloting shall be certified by the plan proponent. Filing and Service. All ballots must be submitted to the attorney for the plan proponent at least 7 days before the confirmation hearing. The balloting report and certification shall be filed with the Court at least 3 days before the confirmation hearing.

Copies of the report shall be served on the United States Trustee, the Service List, and parties filing objections to the plan.

D. Rules for Tabulating Ballots.

In tabulating the ballots, the following rules shall apply: 1. 2. 3. 4.

Ballots that are not signed will not be counted either as an acceptance or rejection. Where the amount shown as owed on the ballot differs from the schedules, the amount shown on the schedules will be used, or if a proof of claim has been filed and allowed or deemed allowed, the amount shown on the proof of claim will be used for the purpose of determining the amount voting, unless the Court orders otherwise. Unless the Court orders otherwise, ballots that do not show a choice of either acceptance or rejection will not be counted either as an acceptance or rejection. Unless the Court orders otherwise, ballots that are received after the last date set for filing ballots will not be counted as either an acceptance or rejection.

L.R. 3022 - Final Decree in Chapter 11 Cases where Debtor is an Individual. (Applicable to cases filed on or after October 17, 2005.) A. Application for Final Decree/Reports/Motion. If the debtor in a chapter 11 case is an individual and has completed all plan payments, then the debtor shall file the following documents: 1. 2.

3. a report with the Court certifying that debtor has complied with the terms and conditions of the plan and that debtor is otherwise eligible for a discharge under Section 1141(d)(5) of the Bankruptcy Code; a motion for entry of discharge order; and an application for final decree pursuant to Rule 3022 of the Federal Rules of Bankruptcy Procedure. 20 B. C. In addition, debtor shall certify that all monthly operating reports have been filed. If the debtor is otherwise eligible, the Court shall issue a discharge as soon as practicable. Request for Discharge under Bankruptcy Code § 1141(d)(5)(B).

If a discharge is sought under Section 1141(d)(5)(B) of the Bankruptcy Code, the debtor shall request entry of discharge by filing a motion for discharge, which shall be a contested matter governed by Rule 9014 of the Federal Rules of Bankruptcy Procedure. If the motion is granted, and if the debtor is otherwise eligible, the Clerk shall issue the discharge and the final decree closing the case. Closing Case before Plan Payments Completed. If the debtor proposes to close the case before plan payments have been completed, and intends to reopen the case after plan completion to obtain a discharge, then the debtor shall file a motion to close the case and shall include in that motion a statement of the debtor’s intent to reopen.

The motion shall be accompanied by a notice giving all creditors 21 days from the date of filing within which to object to the motion. Upon the filing of a motion to reopen, the debtor shall be required to pay any fees due for reopening the case. After reopening, the debtor shall file the application for final decree and supporting documentation as required in subsection A of this Rule.

PART IV.

THE DEBTOR: DUTIES AND BENEFITS L.R. 4001-1 - Motions to Extend or Impose the Stay under Bankruptcy Code §§ 362(c)(3) or (4). Motions to extend or impose the automatic stay should be filed concurrently with the bankruptcy petition. A motion filed after the date of the filing of the petition may not receive a hearing date until after 30 days of the date of the filing of the petition. The motion must include specific and sufficient facts to support the legal requirements for the motion as found in Sections 362(c)(3) or (4) of the Bankruptcy Code, as applicable.

L.R. 4001-2 - Motions for Relief from the Automatic Stay. A motion for relief from stay must be filed as a separate pleading, except such motion may also include a request for abandonment or adequate protection, as well as a request for relief from the co-debtor stay. Content of Motion for Relief from Stay. A motion for relief from stay shall: A. 1.

2. 3. name as respondents the debtor, the case Trustee (if one has been appointed) and, to the extent known to the moving party, any other entity that may have a legal or equitable interest in the property which is the subject of the motion; state with particularity the grounds therefore and the relief sought; state the value of the property, if known, and the amount of any known encumbrances thereon; and 21 4. if the motion is brought “for cause” rather than for “lack of equity,” state the specific facts that constitute “cause.” B. Motion for Relief from the Automatic Stay to Foreclose on Collateral. 1. General Provisions.

In a case filed under any chapter in which the movant is seeking to foreclose on collateral, the movant shall attach to the motion a separate statement that (1) lists any other entity/party that may have a legal or equitable interest in the property which is the subject of the motion; or (2) states that to the best of the movant’s knowledge, information and belief, there are no such other entities/parties. Failure by the movant to include this statement shall result in the motion for relief from stay being stricken as deficient by the Court. In addition, the motion shall recite the specific statutory and factual basis on which relief is sought, including: a. b. c. the basis for the debt; the balance of the indebtedness on the petition date or otherwise; the date and manner of perfection, including book and page number, certificate of title, or UCC-1 recording. Documentation in support of a motion for relief shall be filed in accordance with this Court’s Electronic the Court’s website at Filing Rules, which can be found on www.ilsb.uscourts.gov; and d. if the motion is brought under Section 362(d)(2) of the Bankruptcy Code, the value of the collateral and the basis for the value.

2. Chapter 13 Cases. a. In a chapter 13 case in which the movant is seeking to foreclose on collateral, the motion shall also include: i. ii. the balance due; a breakdown of the amount due, including: (1) unpaid principal; (2) accrued interest from a specific date to a specific date; (3) late charges from a specific date to a specific date; (4) attorneys’ fees; (5) advances for taxes, insurance and the like; (6) any other charges; 22 (7) specific months for which default is alleged; and (8) evidence of perfection of the movant’s lien or security interest. b. Concurrent with the filing of the motion, the movant shall provide to the debtor, debtor’s counsel, Trustee and the United States Trustee, a copy of the payment history for all post-petition payments to date. Failure to provide the payment history may result in the denial of the motion at the preliminary hearing.

C. Notice of Motion.

A notice under this section must be filed as a separate document along with the motion and must be served on all respondents/interested parties. The notice the Court’s website at www.ilsb.uscourts.gov. shall comply with found on form the D. Incomplete Pleadings. Any motion for relief from stay not accompanied by the notice of motion and a certificate of service shall be stricken as deficient by the Court.

E. Opposition to Relief from Stay.

Any pleading in opposition to the motion for relief from stay shall: 1. 2. 3. 4. be filed and served on the movant, and on any entity or person known to have a legal or equitable interest in the property, not later than 14 days from the date of filing unless otherwise ordered; identify the interest of the opposing party in the property; state with particularity the grounds for the opposition; and if filed by the debtor, state the value of the property specified in the motion and the amount of equity that would be realized by the debtor after deduction of all encumbrances.

F. Uncontested Motion.

Unless an objection to a motion for relief from stay is timely filed, or unless the Court directs otherwise, an order granting the motion shall be entered without a hearing. L.R. 4001-3 - Motions to Use Cash Collateral and to Obtain Credit.

A. Provisions to be Disclosed.

In addition to the provisions listed in Rules 4001(b)(1)(B) and (c)(1)(B) of the Federal Rules of Bankruptcy Procedure, any motion to use cash collateral or motion to obtain credit (collectively “Financing Motions”) must also disclose the following: 1. Cross-Collateralization of Pre-Petition Debt: Provisions that grant cross- collateralization protection (other than replacement liens or other adequate protection) to the pre-petition secured creditor, i.e., clauses that secure pre- petition debt by post-petition assets in which the secured creditor does not assert a valid, perfected security interest by virtue of its pre-petition security agreement or 23 applicable non-bankruptcy law, and provisions that deem pre-petition secured debt to be post-petition debt or that use post-petition loans from a pre-petition secured lender to pay all or part of that lender’s pre-petition claim, other than as provided in Section 552(b) of the Bankruptcy Code; Professional Fee Provisions: Provisions that grant a carve-out for professional fees, including the amount of the fee; Priming of Existing Liens: Provisions that prime any secured lien; Loan Documentation Costs: Provisions that call for the payment of fees or costs by the debtor other than reasonable attorney’s fees for loan documentation; Plan Restrictions: Provisions that limit, restrict, or otherwise affect the terms of a proposed plan of reorganization; and United States Trustee’s Fees: Payment of fees to the United States Trustee. Administrative Claims: Existence of any administrative claim that is sought by the movant. 2.

3. 4. 5. 6.

7.

B. Summary of Essential Terms.

All Financing Motions must also set forth, unless good cause is shown, the total dollar amount requested, the debtor’s proposed budget for the use of the funds, an estimate of the value of the collateral which secures the creditor’s asserted interest, the maximum borrowing available on an interim and final basis, the borrowing conditions, interest rate, fees, costs or other expenses to be borne by the debtor, maturity, limitations on the use of the funds, events of default and the protections afforded under Sections 363 and 364 of the Bankruptcy Code.

C. Interim Relief.

The Court may grant relief on an interim and emergency basis to avoid immediate and irreparable harm to the estate pending a final hearing, provided that: 1. 2. 3. The party seeking interim and emergency relief files a motion which complies in all respects with this Rule and with Rule 9006-3 of these Rules, and which describes the reason(s) relief on an emergency basis is necessary and appropriate; Counsel for the party seeking interim, emergency relief contacts the Judge’s courtroom deputy to obtain a date and time for a hearing; The motion and notice of hearing on the motion is served on all secured creditors, the United States Trustee, all parties who filed requests for notice, any examiner or Trustee appointed in the case, counsel for any official committee(s), and, if no committee of unsecured creditors has been appointed, all creditors identified on the list of creditors filed pursuant to Rule 1007(d) of the Federal Rules of Bankruptcy Procedure; 4.

The party seeking interim and emergency relief shall serve a copy of a proposed order granting the motion on all parties identified in the foregoing subsection. 24 5. 6. Service of the motion and notice of hearing is made by one or more of the following means: (1) electronic mail, (2) facsimile transmission, or (3) overnight delivery; The party seeking interim and emergency relief files a certificate of service which identifies the persons served with a copy of the motion and notice, and which, for each such person, specifies the method of service.

D. Proposed Order.

A proposed order granting the motion must be submitted to the Court as a separate document in accordance with the Court’s Electronic Filing Rules, which can be found on the Court’s website at www.ilsb.uscourts.gov. L.R. 4002 - Debtor’s Duties: Scheduling Pending Lawsuits. The debtor shall include on Schedule F or Schedule E/F (effective 12/1/2015) the name and address of any court (using the name and address of the applicable non-bankruptcy court) in which an action or post judgment proceeding is pending against the debtor at the time of the filing of debtor’s bankruptcy petition. The debtor shall also include on Schedule F or Schedule E/F (effective 12/1/2015) the names and addresses of the parties and counsel involved in that action or proceeding.

These requirements are restricted to those actions which must be disclosed in response to the Statement of Financial Affairs as to questions 4(a) and 4(b), Part 4 of Official Form 107 (effective 12/1/2015), or Part 3 of Official Form 207 (effective 12/1/2015). If an action against the debtor is commenced subsequent to the date of the order for relief, but prior to discharge, the debtor shall amend Schedule F or Schedule E/F (effective 12/1/2015), along with the matrix, as required above and shall provide notice to the parties identified above. L.R. 4003 - Motion to Avoid Liens under Bankruptcy Code § 522(f)(1).

A. Requirements.

Any debtor seeking to avoid a lien pursuant to Section 522 of the Bankruptcy Code shall file a separate written motion as to each alleged lien holder. The motion shall identify: 1. 2. 3.

4. 5. 6. the lien to be avoided, its amount, and the date the debt that the lien secures was incurred; the amount, listed separately, of all other liens on the property; if applicable, the amount of the impaired exemption; the statute allowing the exemption; the value of the subject collateral; and the specific statutory provision under which relief is sought. Motions to avoid judicial liens shall also include the case number and the Court where the underlying judgment was entered, the date of the judgment, and shall list the common address of any real property affected by the lien.

B. Nonpossessory, Nonpurc