Criminal Referrals

(a) The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 created § 158 to Title 18 of the United States Code which requires the designation of both the United States Attorney and agents of the Federal Bureau of Investigation to address abuse and fraud in bankruptcy schedules. In addition, 18 U.S.C. § 158(d) requires that all bankruptcy courts establish procedures for referring any case that may contain a materially fraudulent statement in a bankruptcy schedule to the designated agents of the United States Attorney and Federal Bureau of Investigation. (b) Pursuant to 18 U.S.C. § 158(d), the court will use the following procedures for referring any case that may contain a materially fraudulent statement in a bankruptcy schedule: (1) If a Presiding Judge determines that a case may contain a materially fraudulent statement in a bankruptcy schedule, the judge shall refer the case to the individuals designated by the Attorney General of the United States pursuant to 18 U.S.C. § 158(b). The referral may be made by completing the notification statement which should conform substantially to the form set forth in Appendix C to these Local Bankruptcy Rules, or by otherwise 58 providing the same information in writing.

(2) (3) The Presiding Judge may elect to first transmit the referral to the United States Trustee for further investigation and review. The United States Trustee may elect to make a referral, based upon the further investigation, in which case the referral must be sent to the individuals specified in subparagraph (b)(1) of this Rule. The Notification Statement set forth in Appendix C to these Local Bankruptcy Rules may also be used by the court in carrying out its reporting obligations to the United States attorney pursuant to 18 U.S.C. § 3057. 59 APPENDIX A GUIDELINES FOR EARLY DISPOSITION OF ASSETS IN CHAPTER 11 CASES, THE SALE OF SUBSTANTIALLY ALL ASSETS UNDER 11 U.S.C. § 363 AND OVERBID AND TOPPING FEES The following guidelines are promulgated as a result of the increasing use of pre-negotiated or pre- packaged plans and 11 U.S.C. § 363 sales to dispose of substantially all assets of a Chapter 11 debtor shortly after the filing of the petition.

The guidelines recognize that parties in interest perceive the need at times to act expeditiously on such matters. In addition, the guidelines are written to provide procedural protection to the parties in interest. The court will consider requests to modify the guidelines to fit the circumstances of a particular case.

I. OVERBIDS AND TOPPING FEES A.

Topping Fees and Break-up Fees. 1. 2. 3.

Any request for the approval of a topping fee or break-up fee provision shall be supported by a statement of the precise conditions under which the topping fee or break-up fee would be payable and the factual basis on which the seller determined the provision was reasonable. The request shall also disclose the identities of other potential purchasers, the offers made by them (if any), and the nature of the offer, including, without limitation, any disclosure of their plans as it relates to retention of debtor’s employees. Topping fees, break-up fees, overbid amounts and other buyer protection provisions will be reviewed on a case by case basis and approved if supported by evidence and case law. Case law may not support buyer protection provisions for readily marketable assets.

In connection with a request to sell substantially all assets under § 363 within sixty (60) days of the filing of the petition, buyer protections may be considered upon motion, on an expedited basis. II. THE SALE OF SUBSTANTIALLY ALL ASSETS UNDER SECTION 363 WITHIN SIXTY DAYS OF THE FILING OF THE PETITION A. The Motion to Sell. In connection with any hearing to approve the sale of substantially all assets at any time before sixty (60) days after the filing of the petition, a motion for an order authorizing a sale procedure and hearing or the sale motion itself when regularly noticed, should include factual information on the following points: 1.

Creditors’ Committee. If a creditors’ committee existed pre-petition, indicate the date and manner in which the committee was formed, as well as the identity of the members of the committee and the companies with which they are affiliated. 2. Counsel for Committee.

If the pre-petition creditors’ committee retained counsel, indicate the date counsel was engaged and the selection process, as well as the identify of committee counsel. 3. Sale Contingencies. Statement of all contingencies to the sale agreement, together with a copy of the agreement.

4. Creditor Contact List. If no committee has been formed, a list of contact persons, together with fax and phone numbers for each of the largest 20 unsecured creditors. 5.

Administrative Expenses. Assuming the sale is approved, an itemization and an estimate of administrative expenses relating to the sale to be incurred prior to closing and the source of payment for those expenses. 6. Proceeds of Sale.

An estimate of the gross proceeds anticipated from the sale, together with an estimate of the new proceeds coming to the estate with an explanation of the items making up the difference. Itemize all deductions that are to be made from gross sale proceeds and include a brief description of the basis for any such deductions. 7. Debt Structure of Debtor.

A brief description of the debtor’s debt structure, including the amount of the debtor’s secured debt, priority claims and general unsecured claims. 8. Need for Quick Sale. An extensive description of why the assets of the estate must be sold on an expedited basis.

Include a discussion of alternatives to the sale. 9. Negotiating Background. A description of the length of time spent in negotiating the sale, and which parties in interest were involved in the negotiation, along with a description of the details of any other offers to purchase, including, without limitation, the potential purchaser’s plans in connection with retention of the debtor’s employees.

10. Marketing of Assets. A description of the manner in which the assets were marketed for sale, including the period of time involved and the results achieved. 11.

Decision to Sell. The date on which the debtor accepted the offer to purchase the assets. 12. Relationship of Buyer.

A statement identifying the buyer and setting forth all of the buyer’s (including its officers, directors and shareholders) connections with the debtor, creditors, any other party in interest, their respective attorneys, accountants, the U.S. Trustee or any person employed in the office of the U.S. Trustee. 13. Post Sale Relationship with Debtor. A statement setting forth any relationship or connection the debtor (including its officers, directors, shareholders and employees) will have with the buyer after the consummation of the sale, assuming it is approved.

14. Relationship with Secured Creditors. If the sale involves the payment of all or a portion of secured debt(s), a statement of all connections between debtor’s officers, directors, employees or other insiders and each secured creditor involved (for example, release of insider’s guaranty). 15.

Insider Compensation. Disclosure of current compensation received by officers, directors, key employees or other insiders pending approval of the sale. 16. Notice Timing.

Notice of the hearing on the motion to approve the motion to sell will be provided as is necessary under the circumstances.

B. Proposed Order Approving Sale.

A proposed order approving the sale must be included with the motion or the notice of hearing. A proposed final order and redlined version of the order approving the sale should be provided to chambers twenty-four hours prior to the hearing.

C. Good Faith Finding.

There must be an evidentiary basis for a finding of good faith under 11 U.S.C §363(m).

D. Competing Bids.

Unless the court orders otherwise, competing bids may be presented at the time of the hearing. The motion to sell and the notice of hearing should so provide.

E. Financial Ability to Close.

Unless the court orders otherwise, any bidder must be prepared to demonstrate to the satisfaction of the court, through an evidentiary hearing, its ability to consummate the transaction if it is the successful bidder, along with evidence regarding any financial contingencies to closing the transaction.

F. Hearing and Notice Regarding Sale.

Unless the court orders otherwise, all sales governed by these guidelines, including auctions or the presentation of competing bids, will occur at the hearing before the court. The court may, for cause, including the need to maximize and preserve asset value, expedite a hearing on a motion to sell substantially all assets under §363. CHECKLIST FORM AND COMMENTS FOR MOTIONS AND ORDERS PERTAINING TO THE USE OF CASH COLLATERAL AND POST-PETITION FINANCING APPENDIX B UNITED STATES BANKRUPTCY COURT WESTERN DISTRICT OF LOUISIANA _______________ DIVISION IN RE: ________________________ Debtor § § § § § Case Number: ________ Chapter __ Attorney Checklist Concerning Motions and Orders Pertaining to Use of Cash Collateral and Post-Petition Financing (Which Are in Excess of Ten (10) Pages) Motions and orders pertaining to cash collateral and post-petition financing matters tend to be lengthy and complicated. Although the Court intends to read such motions and orders carefully, it will assist the Court if counsel will complete this checklist.

All references are to the Bankruptcy Code (§) or Rules. PLEASE NOTE: Means generally not favored by Bankruptcy Courts in this District. * ** Means generally not favored by Bankruptcy Courts in this District without a reason and a time period for objections. If your motion or order makes provision for any of the following, so indicate in the space provided: CERTIFICATE BY COUNSEL This is to certify that the following checklist fully responds to the Court’s inquiry concerning material terms of the motion and/or proposed order: Yes, at Page/Exhibit Y means yes; N means no, N/A means not applicable (Page Listing Optional) 1. Identification of Proceeding: (a) (b) (c) (d) (e) Preliminary or final motion/order (circle one).............................................

Continuing use of cash collateral (§ 363) ....................................................... New financing (§ 364) .................................................................................. Combination of §§ 363 and 364 financing ..................................................... Emergency hearing (immediate and irreparable harm)……………………..

2. Stipulations: ** (a) (b) (c) (d) Brief history of debtor’s businesses and status of debtor’s prior relationships with lender................................................................................ Brief statement of purpose and necessity of financing ................................... Brief statement of type of financing (i.e.) accounts receivable, inventory) .....................................................................................................

Are lender’s pre-petition security interest(s) and liens deemed valid, fully perfected and non-avoidable?........................................................................ (i) Are there provisions to allow for objections to above? ...................... (e) Is there a post-petition financing agreement between lender and debtor?..... (i) If so, is agreement attached? ............................................................. ** (f) (g) (h) (i) (j) (k) (l) If there is an agreement, are lender’s post-petition security interests and liens deemed valid, fully perfected and non-avoidable?................................

Is lender under-secured or over-secured? (circle one)................................ Has lender’s non-cash collateral been appraised?.......................................... (i) If so, insert date of latest appraisal.....................................................

Is debtor’s proposed budget attached?........................................................... Are all pre-petition loan documents identified?............................................. Are pre-petition liens on single or multiple assets? (circle one)....................

Are there pre-petition guaranties of debt?...................................................... (i) Limited or unlimited (circle one) ..................................................... Yes, at Page/Exhibit Y means yes; N means no, N/A means not applicable (Page Listing Optional) 3. Grant of Liens: * * ** ** * ** (a) (b) (c) (d) (e) (f) Do post-petition liens secure pre-petition debts?..........................................

Is there cross-collaterization? ....................................................................... Is the priority of post-petition liens equal to or higher than existing liens?.... Do post-petition liens have retroactive effect? ............................................. Are there restrictions on granting further liens or liens of equal or higher priority?........................................................................................................

Is lender given liens on claims under §§ 506(c), 544-50 and §§ 522? ......... (i) (ii) Are lender’s attorney’s fees to be paid?............................................. Are debtor’s attorney’s fees excepted from § 506(c)?...................... * (g) Is lender given liens upon proceeds of causes of action under §§ 544, 547, and 548?.......................................................................... 4.

Administrative Priority Claims: (a) (b) (c) Is lender given an administrative priority? .................................................... Is administrative priority higher than § 507(a)?............................................. Is there a conversion of pre-petition secured claim to post-petition administrative claim by virtue of use of existing collateral? .......................... 5.

Adequate Protection (§ 361): (a) (b) (c) Is there post-petition debt service? ................................................................ Is there a replacement/additional 361(1) lien? (circle one or both) ............. Is the lender’s claim given super-priority? .................................................... ** (i) (§ 364(c) or (d [designate].............................................................

(d) Are there guaranties? .................................................................................... Is there adequate insurance coverage? .......................................................... (e) Other?........................................................................................................... (f) Waiver/Release Claims v. Lender: (a) (b) Debtor waives or releases claims against lender, including, but not limited to, claims under §§ 506(c), 544-550, 552, and 553 of the Code? ...................

Does the debtor waive defenses to claim or liens of lender? ........................ 6. ** ** Yes, at Page/Exhibit Y means yes; N means no N/A means not applicable (Page Listing Optional) 7. Source of Post-Petition Financing (§ 364 Financing): Is the proposed lender also the pre-petition lender? ...................................... (a) (b) New post-petition lender? .............................................................................

Is the lender an insider? ................................................................................ (c) 8. Modification of Stay: ** ** (a) Is any modified lift of stay allowed? ............................................................ (b) Will the automatic stay be lifted to permit lender to exercise self-help upon default without further order?.........................................................................

Are there any other remedies exercisable without further order of court?...... Is there a provision that any future modification of order shall not affect status of debtor’s post-petition obligations to lender? ................................... (c) (d) 9. Creditors’ Committee: (a) (b) Has creditors’ committee been appointed? ...................................................

Does creditors’ committee approve of proposed financing? ......................... 10. Restrictions on Parties in Interest: ** ** ** (a) (b) (c) (d) (e) Is a plan proponent restricted in any manner, concerning modification of lender’s rights, liens and/or causes? .............................................................. Is the debtor prohibited from seeking to enjoin the lender in pursuit of rights?...........................................................................................

Is any party in interest prohibited from seeking to modify this order?........... Is the entry of any order conditioned upon payment of debt to lender? ......... Is the order binding on subsequent trustee on conversion? ............................ 11.

Nunc Pro Tunc: ** (a) Does any provision have retroactive effect? ................................................. 12. Notice and Other Procedures: (a) (b) (c) Is shortened notice requested? ...................................................................... Is notice requested to shortened list? ............................................................

Is time to respond to be shortened? ............................................................... Yes, at Page/Exhibit Y means yes; N means no, N/A means not applicable (Page Listing Optional) (d) (e) (f) (g) (h) (i) If final order sought, have fifteen (15) days elapsed since service of motion pursuant to Rule4001(b)(2)?............................................................................ If preliminary order sought, is cash collateral necessary to avoid immediate and irreparable harm to the estate pending a final hearing? .............................. Is a Certificate of Conference included?.........................................................

Is a Certificate of Service included? ............................................................... Is there verification of transmittal to U.S. Trustee included pursuant to Rule 9034?............................................................................................................... Has an agreement been reached subsequent to filing motion?.......................... (i) If so, has notice of the agreement been served pursuant to Rule 4001(d)(1)?..........................................................................................

Is the agreement in settlement of motion pursuant to Rule 4001(d)(4)? (ii) (iii) Does the motion afford reasonable notice of material provisions of agreement pursuant to Rule 4001(d)(4)? .............................................. (iv) Does the motion provide for opportunity for hearing pursuant to Rule 9014?................................................................................................... SIGNED this the day of , 20 .

BY: [Firm Name] [Attorney’s Name] [Louisiana Bar No.] [Address] [Telephone Number] [Email Address] [Identification of role in case] COMMENTS TO CASH COLLATERAL AND DIP FINANCING CHECKLIST 1. Interim vs. Final Orders a. b. c. d. e. Stipulations in preliminary or interim orders should be minimized. Notice is generally not adequate to test the validity of stipulations, and they should be avoided to the extent not absolutely necessary to the interim approval process. Simply state the nature of notice given; do not recite notice was “sufficient and adequate” since that is usually not the case particularly on the first day.

The order should simply note that the financing is being approved pursuant to Bankruptcy Rule 4001(c)(2) authorizing such financing to avoid immediate and irreparable harm. Adequate protection for the use of pre-petition cash collateral may be granted to the extent of a diminution of collateral. The court will not approve on an interim basis language that adequate protection is granted in the form of replacement liens on post- petition assets based on stipulations that use of cash collateral shall be deemed a dollar for dollar decrease in the value of the pre-petition collateral.” At the final hearing, the court will consider evidence to determine the extent to which the lender’s pre- petition collateral has or is likely to diminish in value. That evidence will inform the extent to which adequate protection will be granted.

The court expects that other parties in interest will be involved in the process of developing an interim cash collateral order to the extent practicable. If the court finds that the debtor and lender have not made reasonable efforts to afford the best notice possible, preliminary relief will not be granted until parties in interest have had a reasonable opportunity to review and comment on any proposed interim order. Bankruptcy Rule 4001(b) and (c) limit the extent to which the court may grant relief on less than fifteen (15) days notice. The debtor and the lender must negotiate interim orders within the confines of that authority.

Interim orders shall be expressly without prejudice to the rights of parties in interest at a final hearing. 2. Stipulations a. The lender may request a stipulation as to the amount, validity, priority and extent of the pre-petition documents. The stipulation will only be approved if the order provides the stipulation is binding on other parties in interest only after the passage of an appropriate period of time (customarily ninety (90) days) during which the parties in interest will have the opportunity to test the validity of the lien and the allowance of the claim.

3. Grant of Liens a. Liens granted in the cash collateral and DIP financing orders may not secure pre- petition debts. Financing orders should not be used to elevate a pre-petition lender’s collateral inadequacy to a fully secured status. b. c. Avoidance actions are frequently one of the few sources of recovery for creditors other than secured lenders. Orders granting liens on these unencumbered assets for the benefit of the lender will require a showing of extraordinary circumstances.

In most cases the adequate protection grant will protect the lender since the lender will have a super priority under § 507(b) that will give the lender who suffers a failure of adequate protection a first right to payment out of the proceeds from such actions before payment of any other expenses of the Chapter 11 case. Avoidance actions in the event of a conversion to Chapter 7 may be the only assets available to fund the trustee’s discharge of his or her statutory duties. Similarly, limitations on the surcharge of the lender’s collateral under § 506(c) are disfavored. The secured creditor may be the principal beneficiary of the proceedings in Chapter 11.

Since the burden to surcharge requires a showing of direct benefit to the lender’s collateral, lenders are not unreasonably exposed to surcharges of their collateral. And in light of the decision in Hartford Underwriter’s Insurance Co. v. Union Planters Bank N.A. (In re Hen House Interstate Inc.), 530 U.S. 1, 120 S.Ct. 1942 (2000), only the DIP or the trustee may recover under §506(c). 4.

Modification of Stay a. Authority for unilateral action by lender without necessity to return to court to establish post-petition default or breach or at least a notice to parties in interest will not be approved. If the cash collateral or financing order provides for a termination of the automatic stay in the event of a default, parties in interest must have an opportunity to be heard before the stay lifts. 5. Restrictions on Plan Process a. The court will not approve cash collateral orders (or post-petition financing orders that are in substance cash collateral orders that have the effect of converting all the pre-petition liens and claims to post-petition liabilities under the guise of collecting pre-petition accounts and re-advancing them post-petition) that have the effect of converting pre-petition secured debt into post-petition administrative claims that must be paid in full in order to confirm a plan.

That type of provision unfairly limits the ability and flexibility of the debtor and other parties in interest to formulate a plan. That type of provision, granted at the outset of a case, effectively compels the debtor to pay off the secured lender in full on the effective date and has the consequence of eviscerating § 1129(b). b. On the other hand, persons who are advancing new money to the debtor post- petition may include in financing orders provisions that the post-petition loans have a §364(c)(1) super-super priority. 6. Loan Agreements a. If there will be a loan agreement, the language of the financing order does not need to restate all of the terms of the loan agreement.

The financing motion should, however, summarize the essential elements of the proposed borrowing or use of cash collateral, such as, amount of loan facility, sublimits on availability, borrowing base formula, conditions to new advances, interest rate, maturity, events of default, limitation on use of funds and description of collateral. 7. Professional Fees a. b. To the extent consistent with the market for similar financings, the lender may request reimbursement of reasonable professional fees. The lender should provide reasonably detailed invoices to the debtor and the committees so a proper assessment of reasonableness can be made.

The parties may agree on carve-outs for estate professionals. Lenders may exclude from the carve-out payment of professional fees for litigation of the extent, validity or perfection of the lender’s claim as well as prosecution of lender liability suits. The carve-out should not, however, exclude the due diligence work by the committee or its professionals to determine whether a challenge to the lender is justified. 8.

Work Fees/Loan Fees a. Underwriting a substantial DIP loan may involve both direct out-of-pocket expenses and, at times, a certain lost opportunity cost. The debtor may move for the reimbursement of its lender’s direct out-of-pocket expenses. The debtor and lender must be prepared to establish actual out-of-pocket costs, the reasonableness of the costs, and that the type of costs are actually paid in the market. On a case-by-case basis, the court will consider on an expedited basis the debtor’s request to pay a reasonable up-front fee to a prospective DIP lender to reimburse it for direct out-of- pocket costs.

In addition, in connection with approving a DIP loan facility, on motion of the debtor, the court will consider evidence of market rates and pricing for comparable loans in determining whether commitment fees, facility or availability fees, and other up-front or periodic loan charges are appropriate. The lender must provide evidence that it actually has provided or will provide the services customarily associated with these fees.

APPENDIX C

United States Bankruptcy Court for the Western District of Louisiana NOTIFICATION STATEMENT REGARDING POTENTIAL VIOLATION OF 18 U.S.C. § 152 OR 157 POSITION: TITLE (if applicable): SIGNATURE TO: FROM: DATE: 1. a. Background Information Name of Debtor i. ii. Case number Debtor's Address iii. Debtor's Telephone no. b. Debtor's Attorney i. Address ii. Telephone no. c. Name of Trustee (if applicable) i. Address ii.

Telephone no. Case Chapter Under what chapter was the case originally filed: 7 ( ); 11 ( ); 12 ( ); 13 ( ) Under what chapter is the case now pending: 7 ( ); 11 ( ); 12 ( ); 13 ( ) Type of Case: Voluntary ( ) or Involuntary ( ) 2. a. b. c. 3. Report all facts and circumstances of the offense believed to have been committed (provide as much information as possible), including the following: a. Identify the schedule that contains the materially fraudulent statement. b. Explain why the statement is materially fraudulent. c. Provide the names, addresses, and telephone numbers of persons with knowledge of an information relating to the suspected offense. d. Disclose any other pertinent information regarding the suspected offense.

APPENDIX D

Rules for Mortgage Payments Through the Chapter 13 Trustee, Adequate Protection Payments Through the Chapter 13 Trustee and Sequence of Payments by the Chapter 13 Trustee Section 1. Mortgage Payments Through the Trustee, Adequate Protection Payments Through the Trustee and Sequence of Payments by the Trustee. For the purpose of this Appendix, an “Ongoing Mortgage” is a claim secured by a security interest in real property that is the principal residence of Debtor(s). “Ongoing Mortgage Payments” are all payments due to the holder of the Ongoing Mortgage, including payments of principal, interest, escrow and other amounts authorized by Fed. R. Bankr. P. 3002.1.

(a) For Chapter 13 Cases Pending in All Divisions Except for the Shreveport Division. Unless otherwise ordered by the court, the Plan must provide for the payment through the chapter 13 trustee of Ongoing Mortgage Payments if the Ongoing Mortgage is in default by two (2) or more mortgage payments on the petition date, exclusive of estimated escrow deficiencies, actual escrow deficiencies, or fees and costs due to the holder of the Ongoing Mortgage. This provision shall not preclude a debtor from making direct Ongoing Mortgage Payments if a default on said payment has been cured by a consensual loan modification. In addition, if an Ongoing Mortgage falls into default during the plan term, as evidenced by the filing of a motion for relief from the automatic stay or a consensual loan modification, the debtor must propose a plan modification to address the mortgage arrears and/or consensual loan modification and, notwithstanding any provision herein to the contrary, unless otherwise permitted by the trustee or ordered by the court, all payments under the said plan or loan modification must be made through the chapter 13 trustee after the expiration of any probationary period established in the loan modification.

The trustee is authorized, but not required, to increase or decrease the amount of the monthly contractual installment payment on any Ongoing Mortgage in accordance with a notice of payment change to which no objection has been filed. (b) For Chapter 13 Cases Pending in the Shreveport Division. (1) The Plan must provide for the payment through the chapter 13 trustee of Ongoing Mortgage Payments if the Ongoing Mortgage is in default on (i) the petition date, (ii) the date of plan confirmation, or (iii) the date of the filing of a plan modification pursuant to the terms of 11 U.S.C. § 1322(b)(5); provided, however, this paragraph does not preclude the use of direct Ongoing Mortgage Payments if a default on said payment has been cured by a consensual loan modification. In addition, the chapter 13 trustee shall have the discretion to allow Ongoing Mortgage Payments to be made directly by debtor(s) when the default, excluding any projected escrow shortage, is less than $500.00 due to (2) escrow shortages, late charges or a payment shortfall of less than one (1) month.

The trustee must make Ongoing Mortgage Payments pursuant to written procedures prepared by the trustee and posted on the trustee’s website. The trustee is authorized, but not required, to increase or decrease the amount of the monthly contractual installment payment on any Ongoing Mortgage in accordance with a notice of payment change to which no objection has been filed. Pursuant to this court’s authority under 11 U.S.C. § 105(a), if a Plan provides for Ongoing Mortgage Payments to be made by the trustee, such payments should begin before a plan is confirmed; provided, however, that the trustee is not required to make Ongoing Mortgage Payments until the trustee is satisfied that good funds have been received from the debtor(s). In exercising its authority under § 105(a) to ensure that the monthly payments required by § 1322(b)(2) are made during the time period between the date of the petition and the date of the plan confirmation, this court considered the following: (i) § 1322(b)(2) expressly requires that the holder of an Ongoing Mortgage receive its normal monthly payments, (ii) § 1326(a)(1) states that the debtor “shall” begin making payments not later than thirty (30) days after filing the plan and provides that the court may order “otherwise,” which allows the court to require conduit payments through the trustee, (iii) § 1326(a)(2) states that the trustee “shall” retain payments “proposed by the plan” before confirmation, (iv) § 1326(c) states that the trustee “shall” make payments to creditors “under the plan,” (v) the Bankruptcy Code prohibits modifying the rights of mortgage lenders and creates a presumption in favor of payments disbursed through the trustee, and (vi) conduit payment of mortgage installments protects debtors, creditors, and the integrity of the bankruptcy process.

See, Perez v. Peake, 373 B.R. 468 (S.D. Tex. 2007), where the court held that a local rule authorizing trustees to continue making mortgage payments pending confirmation did not violate § 1326(a)(2) because § 1326(a)(2) refers only to payments made under § 1326(a)(1) and not to all payments received by a trustee. Section 2. Adequate Protection Payments by the Trustee.

(a) For Chapter 13 Cases Pending in All Divisions Except for the Shreveport Division. For chapter 13 cases pending in all Divisions except for the Shreveport Division, the following applies: (1) Debtor Must Remit Adequate Protection Payments to Trustee. A debtor shall commence all payments under §§ 1326(a)(1)(A), (B), and (C) within thirty (30) days of the date of filing the chapter 13 petition, and all such payments shall be made to the trustee, and the plan payment under § 1326(a)(1)(A) shall not be reduced in the amount of adequate protection payments made for the benefit of lessors or secured creditors under §§ 1326(a)(1)(B) or (C). Such payments shall be distributed by the trustee as set forth in the confirmed plan or as stated in an Order for Adequate Protection.

(2) Creditor Must File Motion to Change Amount. Any creditor requesting a change in the amount of § 1326(a)(1) pre- confirmation payments pursuant to § 1326(a)(3) must file a motion to same to obtain such change. (3) Payment on Pre-Confirmation Dismissal. If the court dismisses the case before plan confirmation, and if the trustee has not disbursed adequate protection payments or Ongoing Mortgage Payment to any lessor and/or secured creditor entitled thereto, funds held by the trustee pursuant to §§ 1326(a)(1)(B) and (C) shall be paid to such lessor and/or secured creditor based on one (1) adequate protection payment for each monthly plan payment received by the trustee prior to refunding any money to the debtor as required.

In addition to the payment of adequate protection provided for herein, the trustee shall pay, as a § 503(b) administrative expense, one Ongoing Mortgage Payment for each plan payment received by the trustee if and to the extent that such mortgage payment is provided for by the terms of the last proposed plan filed by the debtor. (b) For Chapter 13 Cases Pending in the Shreveport Division. The provisions of paragraph (a) shall apply to Chapter 13 cases pending in the Shreveport Division, except as provided below: (1) (2) Pending confirmation of a plan, the trustee shall make payments required by 11 U.S.C. § 1326(a)(1)(B) and (C) to a creditor or lessor entitled to such payment in the amount specified in the Plan, absent an order under 11 U.S.C. § 1326(a)(3). The trustee shall make payments under subparagraph (1) above as soon as practicable after the filing of a proof of claim by the creditor to whom payment is due.

(3) The trustee is entitled to take the percentage fee from all payments received or collected pursuant to 28 U.S.C. § 586(e)(1)(B). Section 3. Sequence of Payments by the Trustee (Shreveport Division Only). For chapter 13 cases pending in the Shreveport Division, unless the court enters an Order providing for a different payment sequence, to conform with the requirements of Code § 1325(a)(5)(B)(iii)(I), the trustee must follow the default payment sequence set forth below from payments received by the trustee.

Each numbered paragraph in subparagraph (b) is a level of payment. At the time of any disbursement, if there are insufficient funds on hand to pay any allowed claim in full, claims with a higher level of payment shall be paid any unpaid balance owed, in full, before any disbursement to a claimant with a lower level of payment. If multiple claimants are scheduled to receive payments within the same level of payment and there are insufficient funds to make those payments in full, available funds will be disbursed to claimants within that level on a pro-rata basis. (a) The trustee shall collect the percentage fee currently due from all payments under the Plan.

See, 28 U.S.C. § 586(e). (b) The trustee must distribute-- (1) (2) (3) (4) (5) payment due under Code § 1326(a)(1)(C) (conduit adequate protection), if the Plan provides for such, which payment shall continue in equal monthly amounts post-confirmation until the trustee has satisfied all claims due under Code § 1326(b)(1); payment of conduit ongoing monthly mortgage payments of the kind specified in Code § 1322(b)(2), if the Plan provides for such, for all such payments that become due after the commencement of the case and for each month thereafter in equal monthly amounts; payment due under Code § 1326(a)(1)(B) (conduit lease payment), if the Plan provides for such, and continue each month thereafter; payment due under Code § 1326(b)(1) (administrative claims), if the Plan provides for such, which payment shall commence as soon as practicable following confirmation until paid in full. If excess funds remain on hand after paying claims with a higher level of payment, then, unless otherwise provided in the Plan or the order confirming the Plan, any excess funds on hand shall be paid toward allowed administrative claims, including any attorney's fee due under the Plan; payment to the holders of allowed secured claims (exclusive of an arrearage claim), if the Plan provides for such, in the respective amounts shown in the Plan as confirmed or as later modified, and pursuant to Code § 1325(a)(5)(B)(iii)(I), such payments shall continue for each consecutive month thereafter until said claim is paid in full; (6) (7) payment of home mortgage arrears, if the Plan provides for such; payment of specially classified claims, if the Plan provides for such, which payment shall be paid in the manner provided in the Plan; (8) payment of claims entitled to priority under Code § 507, if the Plan provides for such, provided that in any event payment of such claims shall comply with Code § 1322(a)(2) and (4); (9) payment of any remaining funds, pro rata to holders of allowed non-priority, unsecured claims; and (10) payment of any debt or claim not addressed by the order confirming the Plan shall be administered in accordance with the Plan and applicable laws. APPENDIX E UNITED STATES BANKRUPTCY COURT WESTERN DISTRICT OF LOUISIANA In re: Case No: ______________ (Chapter 13) Debtor(s) BANKRUPTCY RULE 2016(b) DISCLOSURE AND APPLICATION FOR APPROVAL OF FIXED FEE AGREEMENT (Effective April 1, 2025) [NAME OF ATTORNEY] files this Fed. R. Bankr. P. 2016(b) Disclosure and Application for Approval of Fixed Fee Agreement (the “Application”).

(Within this Application, “Debtor” means the undersigned sole debtor or, in the case of a joint bankruptcy, the debtor and the joint debtor. “Attorney” means the undersigned counsel for the Debtor. “Fixed Fee” means the “no-look” or fixed attorney fee or fees as established by General Order 2021-2 of the Bankruptcy Court for the Western District of Louisiana, as amended by General Order 2025-2.) I. Attorney Services for Fixed Fee. The Attorney agrees to provide the following services to the Debtor on a Fixed Fee basis: A. B. Counsel and advise the Debtor with respect to the above captioned matter on an as needed basis throughout the entirety of the proceeding.

This includes without limitation the following: (i) meeting with the Debtor to review and discuss the Debtor’s objectives in filing a bankruptcy case (including rendering advice with respect to whether and under which chapter to file a petition for relief (ii) meeting with the client to review the Debtor’s assets, debts, income and expenses, and (iii) fielding routine phone calls and questions. Assist the Debtor in obtaining and/or preparing, and filing, the documents required by 11 U.S.C. § 521 and any required amendments to those documents. The Attorney, or his or her paralegal or assistant as appropriate, shall personally review all such documents with the Debtor and make all necessary changes and additions to such documents, prior to obtaining the Debtor’s signature and filing them with the court.

C. D. E. F. G. H. I. J. K. L.

Obtain from the Debtor and timely submit to the Chapter 13 Trustee properly documented proof of income for the Debtor, including business reports (i.e, profit and loss statements) for self-employed Debtors. Advise the Debtor with respect to the necessity of filing and providing to the Chapter 13 Trustee any and all tax returns required under 11 U.S.C. § 1308. Assist the Debtor in obtaining such returns and providing them to the Chapter 13 Trustee. Promptly prepare a Chapter 13 plan on behalf of the Debtor and review that plan with the Debtor prior to obtaining the Debtor’s signature and filing the plan with the court.

Explain to the Debtor how, when, and where to make all necessary payments under the plan, including both payments that must be made directly to creditors and payments that must be made to the Chapter 13 Trustee, with particular attention to housing and vehicle payments. Advise the Debtor of the need to maintain appropriate insurance. Advise the Debtor of the requirement to attend the § 341 meeting of creditors, and notify the Debtor of the date, time, and place of the meeting. Inform the Debtor that he or she must be punctual and, in the case of a joint filing, that both spouses must appear at the same meeting.

Attend the § 341 meeting of creditors and any rescheduled meeting and/or continuances of the meeting. Prepare and file any and all pleadings that are necessary to protect the Debtor’s interest in the case and/or that are required to confirm the Chapter 13 plan. Attend the confirmation hearing (and any continuances of the hearing) if required under the circumstances (such as if there are unresolved objections), or as required by court order or local rules and/or customs. Prior to confirmation, prepare, file and serve any and all amended or modified plans required under the circumstances.

To the extent an amended plan is filed in response to an objection to confirmation, such amended plan must address all then pending objections to confirmation of the plan, or the court must consider and rule on any pending objections prior to filing the amended plan. For purposes of clarity, if the Chapter 13 Trustee has filed more than one objection and/or a creditor or creditors have objected to the plan, the Attorney must obtain a ruling from the court on those objections to which the parties cannot reach agreement before filing an amended plan to address other objections to which the Attorney has obtained agreement. M. Review, and when necessary for initial plan confirmation, object to, any and all filed claims.

N. O. P.

Represent the Debtor in any and all motions and other matters filed in this bankruptcy case within 120 days after confirmation of the plan. Advise the Debtor concerning his/her/their obligations and duties pursuant to the Bankruptcy Code, Bankruptcy Rules, applicable court orders, and the provisions of the confirmed Chapter 13 plan. Represent the Debtor regarding any services required after the Debtor makes the final payment required under the Chapter 13 plan, including the preparation and filing of any document, to assist the Debtor in obtaining a Chapter 13 discharge. There will be no additional charge imposed for these services unless the services are extraordinary, in which event counsel may apply for additional fees.

Counsel may collect a filing fee if reopening the case is required. II. Excluded Services. The Fixed Fee does not include the following services: A. B. C. Representation of the Debtor in an adversary proceeding, either as a plaintiff or a defendant.

Representation of the Debtor in a contested matter, the subject of which is extraordinary in the context of Chapter 13 cases in the United States Bankruptcy Court for the Western District of Louisiana. Representation of the Debtor in any matter in which the Court orders fee shifting pursuant to which fees are to be paid by a person other than the Debtor.

III.

Fixed Fees and Reimbursements. The Attorney agrees to the following fees and reimbursements (check applicable boxes): A. B. [ ] Fixed Fee. A Fixed Fee (i.e., the “no-look fee”) in the amount of $________ (insert amount not to exceed $5,025). Prior to or at the time this matter was filed, Attorney received $________ for representing the Debtor in this case.

Accordingly, the balance due from the Chapter 13 Trustee as an administrative expense in this matter is $________. [ ] Advances. I have advanced the fee for the Debtor to obtain the credit counseling required by 11 U.S.C. § 109(h) in the amount of $________; I have advanced the costs of a credit report on behalf of the Debtor in the amount of $________; and/or I have advanced the filing fee and any other fee required to be paid under 28 U.S.C. § 1930 in the amount of $________ (to the extent the Attorney has not advanced any of these costs, insert $0). The Attorney acknowledges and agrees that the Fixed Fee provided in Sections III.A. and III.D. of this Application is inclusive of any and all Advances set forth in this Section III.B. C. [ ] Reimbursements. Reimbursement for noticing the plan and any amendments thereto, and for any and all other expenses incurred after filing of the case (such as copying costs, computer based research costs, services, telephone expenses, facsimile charges, mail (including overnight and express mail $________ (insert amount not to exceed $275).

Thus, in addition to the amounts set forth in Section III.A. of this Application, the Chapter 13 Trustee shall reimburse the Attorney the sum set forth in this Section III.C. as an administrative expense of the estate. the amount etc.) in of D. [ ] Notwithstanding Section III.A. and III.C. of this Application, if the total amount to be paid-in to the Chapter 13 Trustee by the debtor under a confirmed Chapter 13 plan is $9,050 or less, then the fixed fee is capped at $2,825, subject to any relevant provisions set out in General Order 2021-2, as amended by General Order 2025-2, of the Bankruptcy Court for the Western District of Louisiana governing the Fixed Fee. Prior to or at the time this matter was filed, Attorney received $________ for representing the Debtor in this case. Therefore, the balance due from the Chapter 13 Trustee as an administrative expense in this matter is $________. E. Unless otherwise ordered by the court, the Fixed Fee is compensable by the Chapter 13 Trustee without fee application upon confirmation of the plan or upon dismissal pre-confirmation.

IV. Additional Services. The following services will also be provided, if needed, on a Fixed Fee basis [check applicable boxes]. Unless otherwise ordered by the Court, payment must be made through the confirmed plan: A. B. C. D. E. F. G. H. [ ] The Fixed Fee for Defense of Motions for Relief from Stay shall be $________ (insert an amount not to exceed $450); [ ] The Fixed Fee for Defense of Motions to Dismiss shall be $________ (insert an amount not to exceed $450); [ ] The Fixed Fee for Motions to Approve Mortgage Modification (trial or permanent) or to Refinance a Mortgage shall be $________ (insert an amount not to exceed $450); [ ] The Fixed Fee for Motions to Approve Settlement/Allow use of Settlement shall be $________ (insert an amount not to exceed $325); [ ] The Fixed Fee for Motions to Distribute Insurance Proceeds shall be $________ (insert an amount not to exceed $325); [ ] The Fixed Fee for Motions to Substitute Collateral shall be $________ (insert an amount not to exceed $450); [ ] The Fixed Fee for Motions to Incur Debt, including any required amendments to Schedules I & J shall be $________ (insert an amount not to exceed $300); [ ] The Fixed Fee for Motions to Retain Tax Refund shall be $________ (insert an amount not to exceed $300); I. J. K. L. M. N. O. [ ] The Fixed Fee for Motions to Suspend Plan Payments shall be $________ (insert an amount not to exceed $300); [ ] The Fixed Fee for Motions to Sell shall be $________ (insert an amount not to exceed $450); [ ] The Fixed Fee for Motions to Vacate Order of the Court shall be $________ (insert an amount not to exceed $300); [ ] The Fixed Fee for Objections to Proofs of Claim shall be $________ (insert an amount not to exceed $300); [ ] The Fixed Fee for Obtaining Confirmation of Amended Plan shall be $________ (insert an amount not to exceed $450); and [ ] The Fixed Fee for attending a hearing on any of the above matters (when any of items listed in Section IV.A. through IV.M. of this Application require a hearing during which evidence is adduced) shall be an additional $________ (insert an amount not to exceed $225).

Any legal services rendered that are not covered by an agreed Fixed Fee in Section IV.A. through IV.N. of this Application may be provided on an hourly fee basis at a rate not to exceed $________, or based on a proposed fixed fee for the service. All such hourly fees or proposed fixed fees are subject to approval by the Bankruptcy Court after the filing and service of a proper fee application.

V. Debtor Agreements and Certifications.

A. Debtor Agreements.

The Debtor agrees to: 1. 2. 3. 4.

5. 6. Provide the Attorney with accurate concerning the Debtor’s assets, liabilities, income, and expenses; financial information Discuss with the Attorney the Debtor’s objectives in filing the case; Keep the Attorney informed of the Debtor’s contact information, including physical and mailing address, phone number(s), and email, if applicable; Inform the Attorney of wage garnishments, lawsuits, or attachments (sequestrations) that occur or continue after the commencement of the case; Make the required payments to the Chapter 13 Trustee and to those creditors being paid directly, or, if required payments cannot be made, notify the attorney immediately; Appear punctually at the meeting of creditors (called the § 341 meeting) with recent proof of income and a picture identification card and the Debtor’s Social Security Card; the Debtor must be 7. 8.

9. present in time for check-in and when the case is called for actual examination; Inform the Attorney if any tax refunds to which the Debtor is entitled are seized or not received when due from the IRS or the Louisiana Department of Revenue; Promptly provide the Attorney and the Chapter 13 Trustee with signed, dated, and filed copies of all tax returns filed while the case is pending; Inform the Attorney promptly of any change in the Debtor’s financial circumstances, including any change in wages/salary or change in employer; and 10. Inform the Attorney if the Debtor desires to buy or sell property of any kind whatsoever or incur new indebtedness or refinance any loan during the case.

B. Debtor certifications.

The Debtor certifies that: 1. 2. 3. The Debtor has reviewed this Application with the Attorney and understands his or her responsibilities to the Court and to the Attorney; The Debtor understands the services to be provided and the fees to be paid as set forth in this Application; and The Debtor has met in person with the Attorney (or another attorney supervised by the undersigned Attorney and who is licensed to practice law) for not less than one (1) hour.

(The Debtor understands that time spent exclusively with a paralegal or other person not licensed to practice law may not be included in the one (1) hour.) VI. Attorney Certification. The Attorney certifies that: A. B. C. This Application sets forth a true and correct statement of the compensation that the Attorney has been paid or that has been agreed to be paid to Attorney; The Attorney (or another attorney supervised by the Attorney and who is licensed to practice law) met in person with the Debtor for not less than one (1) hour. The Attorney understands that time spent exclusively with a paralegal or other person not licensed to practice law may not be included in the one (1) hour; The Attorney has obtained the Debtor’s “wet” signature to this Application and provided a copy of this fully executed Application to the Debtor, and, upon request, the Attorney agrees to provide the original copy of this Application to the Chapter 13 Trustee or the Court; and D. The Attorney has not shared or agreed to share any of the compensation paid or to be paid.

The following sets forth all of the compensation that is being paid by any person or entity other than the Debtor. Describe: _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Dated: Dated: Dated: Debtor Joint Debtor (if applicable) Attorney for the Debtor(s)