Disclosure of Corporation Ownership
U.S. Bankruptcy Court for the Northern District of Iowa
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(a) Except for those documents or pleadings identified in Paragraph (b) of this rule, the disclosure statement requirements provided in Federal Rule of Civil Procedure 7.1 shall apply to each document that marks the initial appearance of a non-governmental corporation in a bankruptcy case or adversary proceeding. (b) Non-governmental corporations shall not be required to file a disclosure statement when filing Proofs of Claims or Reaffirmation Agreements in a voluntary or involuntary bankruptcy case. (c) Parties shall file ONE copy of the required disclosure statement as opposed to the two required by Federal Rule of Civil Procedure 7.1. 9 (d) (e) The Clerk shall issue a deficiency notice for each petition and initial document filed by a non-governmental corporation in a bankruptcy case or adversary proceeding that is not accompanied by the required disclosure statement, allowing 14 days for cure of the deficiency.
Failure to file the required disclosure statement within the time provided in the deficiency notice may result in either an order striking the document from the record or dismissal of the case or proceeding.
PART 2.
OFFICERS AND ADMINISTRATION; NOTICES; MEETINGS; EXAMINATIONS; ELECTIONS; ATTORNEYS AND ACCOUNTANTS Rule 2002‐1 Notice to Creditors and Other Interested Parties (a) In cases under chapter 7, 11, 12 or 13 , the meeting of creditors under 11 U.S.C. § 341 may be set on 14 days’ notice. (b) Request for Notices (1) A creditor, equity security holder, or other entity may file a document entitled “Request for Notices.” A Request for Notices must be served on the following parties, and a proof of service must be filed with the Clerk: (A) the United States Trustee; (B) any case or standing trustee; (C) any committee elected or appointed in the case or the committee’s attorney if one has been employed; and (D) the debtor’s attorney, or debtor if debtor is pro se. (2) The Clerk shall not add an entity to the list of entities requesting notices unless the entity has complied with the service and proof of service requirements. (3) A creditor who files and serves a Request for Notices shall thereafter be entitled to all limited notices which may be served in the case.
Such notices are in addition to those notices for which the Federal Rules of Bankruptcy Procedure require service on all creditors and in addition to those notices which must be served on the creditor as a party against whom relief is sought. 10 (4) Any entity who is not a creditor, a debtor, or an indenture trustee, and who files and serves a Request for Notices shall thereafter be entitled to all notices for which the Federal Rules of Bankruptcy Procedure require service on all creditors and to all limited notices which may be served in the case. (5) For purposes of this Rule, the term “limited notices” means any notices which the Federal Rules of Bankruptcy Procedure require to be served pursuant to Court direction by the following or similar language: “such other entity as may be designated by the Court,” “on notice as the Court may direct,” to “any entity as the Court may direct,” to “other party as the Court may direct,” to “entities designated by the Court,” to “other entities as directed by the Court,” to “other parties in interest as the Court directs,” or to “other parties in interest as the Court may designate.” “Limited notices” also means any notices which pursuant to the Federal Rules of Bankruptcy Procedure are required to be served on all creditors but for which the Court enters an order directing service on fewer than all creditors. (6) An entity entitled to limited notices shall be entitled to such notice regardless of whether the Court directs notice to that entity unless the Court specifically directs otherwise.
(7) An entity who by court order under the Federal Rules of Bankruptcy Procedure or these Local Rules is required to serve a notice shall be responsible for serving the notice in accordance with this Rule. (8) A list of entities that file Requests for Notices in a case is available via CM/ECF. (9) Filing a Request for Notices does not effectuate a change in the address of a creditor, equity security holder or indenture trustee as it was originally shown in the creditor list or schedules and as shown in the mailing matrix. The service address of a scheduled or listed creditor, equity security holder or indenture trustee is changed only pursuant to Federal Rule of Bankruptcy Procedure 2002(g).
Rule 2002‐2 Notice to United States or Federal Agency (a) The Clerk shall cooperate with the United States Attorney for the Northern District of Iowa in compiling a list of agencies, departments, administrations, and services of the United States which are commonly scheduled as creditors in bankruptcies filed in this district. The Clerk shall keep a permanent record of the list’s addresses and their effective dates. The current list is available on the Court’s website. (b) The list will be used by the debtor to provide the addresses of the United States as creditor in the debtor’s schedules, statements, lists and the matrix filed in the case.
11 Service on the United States using an address from the then‐current list creates a presumption of proper service on the governmental unit for notices served pursuant to Federal Rule of Bankruptcy Procedure 2002, Local Rule 2002-1 and for notices served by Court direction. The presumption does not apply to notices required to be given to the United States as a party against whom relief is sought in any contested matter or adversary proceeding. (c) In addition to the specific agencies, departments, administrations and services of the United States, the matrix of creditors shall also include the current address of the United States Attorney for the Northern District of Iowa, whose address shall be available on the Court’s website. A matrix listing for the United States Attorney must include a designation of each scheduled agency, department, administration or service using its initials, e.g. “United States Attorney (FSA).” (d) A debtor is not excused from scheduling and listing a United States governmental unit merely because the debtor’s creditor is not included in the Clerk’s list.
Rule 2004‐1 Examinations (a) Parties Must Confer Prior to filing a motion for an examination under Federal Rule of Bankruptcy Procedure 2004, the party seeking the examination must contact the attorney for the entity to be examined (or the entity directly if the entity is not represented by an attorney) to attempt to reach agreement that the examination may be taken and to agree as to the date, time, and place of the examination and any documents to be produced. (b) Consent Motions A motion for an examination under Federal Rule of Bankruptcy Procedure 2004 which certifies that the parties have agreed to the specific arrangements described in the motion will be granted by the Court without further notice or hearing. The motion must be accompanied by a proposed order which contains the date, time, and place of the examination and which describes any documents to be produced. (c) Contested Motions (1) If the parties are unable to agree to the taking of a proposed Rule 2004 examination, the motion seeking the examination must state the need for the examination and the nature of the dispute over its taking.
The motion must show the proposed time, date, and place of the examination and any documents to be produced. The motion must also state what efforts were made to reach agreement as to the taking of the examination. The motion must be accompanied by a proposed order granting the motion. The proposed order must specify the name 12 of the person to be examined; the time, date, and place of the examination; and any documents to be produced.
(2) Movant must serve a copy of the motion and the proposed order upon opposing counsel or upon the entity to be examined if the entity is not represented by counsel. The party opposing the examination shall have 14 days from the date of service to file an objection to the motion. The objection must state the grounds for opposition. The Court will determine whether to set the motion for hearing or rule on the motion without hearing.
Any request for expedited consideration of the motion shall comply with Local Rule 9073‐2. Rule 2014‐1 Employment of Professionals by Chapter 7 Trustees (a) Appraisers, Auctioneers, and Agents A chapter 7 trustee’s application to hire an appraiser, auctioneer, or agent must first be submitted to the United States Trustee for review and recommendation and must be served upon the debtor and debtor’s attorney. If the agreed compensation is less than $1,000, or not more than 10% of the sales price for a sales agent, or not more than the generally applicable rates for collection of commercial accounts receivable, and the United States Trustee agrees with such employment on such terms, such employment and terms shall be deemed approved upon such application with the United States Trustee’s agreement attached to the application being filed with the Clerk. If the agreed compensation exceeds such amounts or if the United States Trustee does not agree with such employment, the United States Trustee shall file the application with the report and recommendation to the Court for disposition.
(b) Attorneys and Accountants An application by a chapter 7 trustee for an order approving the employment of an attorney or an accountant shall first be submitted to the United States Trustee for review and recommendation and served upon the debtor and debtor’s attorney. The application submitted to the United States Trustee must be accompanied by a written statement setting forth the facts that in the trustee’s view justify the retention of an attorney or accountant and the terms and conditions of employment. The United States Trustee shall then file the trustee’s application with a report and recommendation on such employment, but without any detailed disclosure of the facts for justification. Rule 2016‐1 Compensation of Professionals (a) Chapter 7 Trustee Fees and Expenses (1) Chapter 7 Trustee Fees 13 Unless the Court orders otherwise either before or after the filing of the trustee’s final report, a chapter 7 trustee is excused from the fee itemization requirements of Federal Rule of Bankruptcy Procedure 2016(a) if the request for compensation is $2,500 or less.
(2) Chapter 7 Trustee Reimbursed Expenses Unless the Court orders otherwise either before or after the filing of the trustee’s final report, a chapter 7 trustee is excused from the expense itemization requirements of Federal Rule of Bankruptcy Procedure 2016(a) if the request for reimbursement is $500 or less. However, the trustee must verify in the expense reimbursement request that the non-itemized expenses were actual and necessary expenses in the trustee’s service to the estate and that the request does not include overhead expenses. (b) Attorney for Debtor ‐ Chapter 13 The Court has issued a Standing Order re: Chapter 13 Attorney Fee Requests. The attorney for debtor in a chapter 13 case is excused from the application requirements of Federal Rule of Bankruptcy Procedure 2016(a) and the notice requirement of Federal Rule of Bankruptcy Procedure 2002(a)(6) if the request for compensation is less than the base amount established by the Court at the time of confirmation of the plan.
The base amount figure is listed in the Standing Order and applies to all attorney compensation through the first confirmation of a plan (See Standard Allowable Amount in Chapter 13 Attorney Fee Request Standing Order). The base amount is updated annually by standing order and published on the Court’s website. The standing trustee shall ascertain from the attorney’s fee disclosure statement whether the attorney’s application for fees is less than the base amount, and if so, the agreed compensation shall be awarded in the proposed order of confirmation. Any additional request for fees for work done after confirmation requires a fee application under Federal Rule of Bankruptcy Procedure 2016(a) or a “Certification of A La Carte Fees” as stated in Chapter 13 Attorney Fee Request Standing Order.
(c) Bankruptcy Petition Preparers A “Disclosure of Compensation of Bankruptcy Petition Preparer” (Director’s Form 2800) shall be submitted in every case prepared by petition preparers. Rule 2090‐1 Attorneys – Admission to Practice (a) Roll of Attorneys 14 The bar of the Bankruptcy Court for the Northern District of Iowa shall consist of those attorneys who are admitted to practice and who remain in good standing before the United States District Court for the Northern District of Iowa. (b) Appearances (1) Who May Appear Generally Except when a pro hac vice appearance is permitted by the Court or when a Department of Justice attorney appears for the United States, only a member of the bar of the Bankruptcy Court for the Northern District of Iowa may appear as an attorney in the Bankruptcy Court for the Northern District of Iowa. (2) Form of Appearance An attorney making an appearance shall, either by filing an appearance or by signature on the petition or complaint, cause the Clerk’s record to clearly reflect the office address, direct telephone number of attorney or legal assistant, e-mail address, and identification number of the attorney and the name of the party for whom appearance is made.
(3) Pro Hac Vice Admission An attorney who is not a member of the bar of the Bankruptcy Court for the Northern District of Iowa may be permitted to appear and participate in a pending case and/or associated proceeding by application. A separate application is required for every new bankruptcy case. The application shall provide: (A) (B) (C) the attorney’s office address, e-mail address, telephone number, and attorney identification number; the courts to which the applicant has been admitted to practice and the dates of admission; that the applicant is in good standing and eligible to practice in said courts; the application shall be accompanied by a letter or certification from the attorney’s bar association, dated within one year, confirming the attorney’s good standing within the association. If not filed with the application, the letter or certificate shall be filed within 21 days of the filing of the application; (D) whether the applicant is currently suspended or disbarred in any court; (E) if the applicant has concurrently or within the year preceding the current application made any pro hac vice application to this Court, the title and 15 number of each action wherein such application was made, the date of the application, and whether the application was granted, and (F) acknowledgment that if the pro hac vice application is granted, the attorney is subject to the jurisdiction of the Court with respect to the attorney’s conduct to the same extent as a member of this Court’s bar is subject to the Iowa Rules of Professional Conduct.
Once the application is granted, the Pro Hac Vice attorney is required to request filing privileges with the Northern District of Iowa Bankruptcy Court via PACER. Further, the Pro Hac Vice attorney shall file a Notice of Appearance and Request for Notice under his/her own PACER login to ensure electronic noticing will occur. (4) Associate Counsel Requirement for Attorneys Appearing Pro Hac Vice Any attorney who is admitted pro hac vice must have associate counsel who is an active member in good standing of the bar of the Bankruptcy Court for the Northern District of Iowa. The appearance, office address, e-mail address, and telephone number of associate counsel shall be entered.
All notices and pleadings shall also be served upon associate counsel in accordance with the Federal Rules of Bankruptcy Procedure and these Local Rules. The attendance of associate counsel at any hearing or trial is required. The associate counsel requirement does not apply to parties who are appearing pro se or to attorneys of federal governmental units. (5) An attorney granted Pro Hac Vice admission within a case may appear in any adversary proceeding in the case without further application.
(c) Change of Address or Telephone Number Attorneys, whether a member of this bankruptcy bar or admitted to appear pro hac vice in any pending case or proceeding, must keep their mailing address, e-mail address, telephone numbers, and other information current in the Judiciary’s PACER system (https://pacer.uscourts.gov) by using the “Manage My Account” feature in the system and selecting the appropriate option within the “Maintenance” tab. Failure of an attorney to so maintain the attorney’s account may lead to loss of login privileges without notice. (d) Standards of Professional Responsibility and Conduct The rules of professional responsibility and conduct adopted by this Court are the Iowa Rules of Professional Conduct adopted by the Supreme Court of Iowa as amended from time to time, except as may otherwise be provided by this Court or the District Court. 16 The Court adopts as recommended guidelines for professional conduct the Standards for Professional Conduct approved by the Iowa State Bar Association.
(1) Disbarment or Suspension by Another Court Any attorney that has been admitted to practice in the United States District Court for the Northern or Southern Districts of Iowa that becomes disbarred or suspended from practicing law by any court will 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 should, immediately upon disbarment or suspension, notify the Clerk of the disbarment or suspension in writing. Failure to do so will subject the attorney to further sanctions by this Court. (2) Request for Reinstatement Any attorney disbarred or suspended from practicing in this Court pursuant to Paragraph (1) 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 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 not continue to be disbarred or suspended in this Court. (3) Non-exclusivity Nothing in this Rule precludes the Court from initiating its own attorney disciplinary proceeding regardless of whether an attorney has been disciplined by another court. (e) Law Student Practice A law student enrolled in a reputable law school fully approved by the American Bar Association may appear as counsel before the Court under the following conditions.
(1) Certification The dean of the law school must certify to this Court that the student has completed at least the equivalent of three (3) semesters of the work required by the school to qualify for the J.D. (2) Supervision The student’s appearance must be under the direct supervision of an attorney admitted to practice before this Court who is personally present and has appeared of record in the case. 17 (3) Compensation The student may not receive compensation for a court appearance; however, this prohibition shall not prevent a student from receiving general compensation from an employer‐attorney or from a school administered fund. Nothing in this rule shall prevent the Court from awarding reasonable attorney fees under an appropriate statute for time expended by a student as long as the student does not receive any of the fee. Rule 2091‐1 Attorneys - Withdrawals An attorney who has appeared on record in a case or proceeding may withdraw only with leave of the Court and for good cause.
The attorney’s motion to withdraw must be served on the client, the United States Trustee, the case or standing trustee, if any, any party who has filed a Request for Notices, and opposing counsel in any pending contested matter or adversary proceeding in which movant has appeared.