Commencing a Bankruptcy Case – Mega Cases

Except in exigent circumstances where advance notice is not practicable, at least two business days before filing a multi-debtor chapter 11 or chapter 15 case with more than $100 million in cumulative assets or liabilities, counsel for the debtors or foreign representatives must advise the clerk and the United States trustee – without disclosing the identity of the debtors – of the impending filing and any anticipated emergency relief to be requested. Rule 1004.1-1. Voluntary Petition on Behalf of an Infant or Incompetent Person (a) Appointment Instrument. A voluntary petition filed under Bankruptcy Rule 1004.1(a) must include with the petition: (1) a copy of the representative’s appointment instrument – including a power of attorney or an order from a court of competent jurisdiction – and 3 a declaration signed under penalty of perjury, containing the following (2) information: (A) the representative’s name, address, and relationship to the debtor; (B) when the representative was appointed; (C) why the petition was filed; (D) why the debtor was unable to file the petition himself or herself; (E) whether the debtor consents to filing the petition; (F) whether any of the debtor’s debts were incurred for the benefit of the representative; (G) the name and address of any person the representative reasonably believes may object to the filing of the petition; and (H) with respect to any power of attorney, whether: (i) before executing the power of attorney the debtor was a minor or had been adjudicated incompetent; and (ii) the power of attorney expressly authorizes the filing of a bankruptcy petition.

(b) Restricted Filing. The declaration required by (a)(2) – together with any attachments thereto – must be filed under seal. No separate motion or court order is required to file this declaration under seal. (c) Service of Petition and Declaration.

A voluntary petition filed under Bankruptcy Rule 1004.1 must be served together with the declaration required by (a)(2). (d) Appointment as Guardian Ad Litem. (1) Motion Requirements. A motion seeking appointment of a guardian ad litem under Bankruptcy Rule 1004.1(b)(2) must attach a proposed order and a declaration containing the following information: (A) why appointment of the movant as guardian ad litem is necessary; (B) why appointment of the movant as guardian ad litem would be in the debtor’s best interest; 4 (C) the fee, if any, the movant would charge the debtor for serving as guardian ad litem; (D) the movant’s professional and criminal history, if any; (E) the movant’s competence to handle the debtor’s financial affairs, including the movant’s knowledge of the debtor’s financial affairs; (F) whether the movant has any current or potential future interest in the debtor’s financial affairs, other than the proposed fee; and (G) the name and address of any person the representative reasonably believes may object to appointment of the movant as guardian ad litem.

(2) Additional Requirements. If appointment as a guardian ad litem under Bankruptcy Rule 1004.1(b)(2) is sought based on the debtor’s incompetence, the motion must also attach: (A) (B) a letter from the debtor’s physician regarding the debtor’s competence to conduct the debtor’s own financial affairs; and a copy of any power of attorney or other document giving the movant the authority to act for the debtor. (3) Hearing. A motion seeking appointment of a guardian ad litem under Bankruptcy Rule 1004.1(b)(2) containing all the information required by (d) will be set for hearing within 14 days, or as soon thereafter as the court can hear it.

(4) Authority to Act Pending Appointment. Except to seek an extension of time to comply with the debtor’s bankruptcy case filing requirements, unless the court orders otherwise, the party seeking appointment as guardian ad litem must not take any other action on the debtor’s behalf until the court rules on the motion seeking appointment.