DUTY TO KEEP RECORDS, MAKE

REPORTS, AND GIVE NOTICE OF CASE.

(a) (b) Required Monthly Operating Reports When a Business is Operated When a business is operated by a trustee or debtor-in-possession in a Chapter 11 or 12 case, by a trustee in a Chapter 7 case, or by a debtor in a Chapter 13 case, a monthly operating report must be filed with the Court and served upon the United States Trustee [or, in lieu thereof, upon the standing trustee in a Chapter 12 or 13 case] not later than the 21st day of the month following the month for which the report is submitted. The first report is due the month following the month that the order for relief is granted or that a trustee qualifies. A report must be filed in the format approved by the United States Trustee [or, in lieu thereof, by the standing trustee in a Chapter 12 or 13 case]. Disposition of Books and Records Except in cases involving the disposal of patient records governed by § 351 of the Bankruptcy Code, a trustee who is in possession of books and records of the debtor may destroy, abandon, store, or return to the debtor all or a portion of those books and records on 21 days’ notice to the Court, the debtor, the attorney for the debtor, the United States Trustee, the United States Attorney, and the appropriate Internal Revenue Service Special Procedures Staff office.

A notice must include the 21-day negative notice language described in LBR 9007(a) and a detailed description of the books and records. If no objection to the proposed disposition is filed with the Court and served on the trustee, the disposition may be made without court order or further notice. (c) Post Confirmation Requirements in Chapter 11 Cases (Non-Subch. V Cases) 1.

In a case filed under Chapter 11 which is not governed by Subchapter V, and in which the debtor is a non-individual entity, the proponent of a confirmed plan must: (A) file a post confirmation report within 60 days after the date of the order TXEB Local Rules Revised: August 22, 2022 Page 20 of 83 confirming the plan and serve that report upon the master mailing list (matrix) as constituted by the Court on the date of service. The report must inform the Court of the post-confirmation actions taken by the confirmed debtor or the trustee and the progress made toward consummation of the plan; and (B) within 180 days after the date of the confirmation order, file either an application for a final decree showing that the plan has been consummated with a proposed final decree or a subsequent post-confirmation report explaining why an application for final decree is not yet appropriate and requesting a continuance of any status conference previously scheduled. 2. In a case filed under Chapter 11 which is not governed by Subchapter V, and in which the debtor is an individual, the proponent of a confirmed plan must: (A) (B) file an annual status report on each anniversary date of the entry of the confirmation order which outlines the status of payments made by the individual debtor in the past year and any other post-confirmation action taken toward consummation of the plan; and file a Notice of Plan Completion and §522(q) Statement By Individual Debtor in a Chapter 11 Case (no service required) in a format substantially conforming to TXEB Local Form 4004-b under which each individual debtor declares that all payments under the confirmed Chapter 11 plan have been completed and that all prerequisites for the entry of an order of discharge pursuant to 11 U.S.C. §1141(d)(5) have been fulfilled.

(d) Post Confirmation Requirements in Chapter 11 Subchapter V Cases 1. In a case filed under Chapter 11 in which the Debtor elects treatment under Subchapter V and in which consensual confirmation of the Chapter 11 plan was accomplished under § 1191(a): (A) the Debtor shall file a post confirmation report within 60 days after the date of the order confirming the plan and serve that report upon the master mailing list (matrix) as constituted by the Court on the date of service. The report must inform the Court of the post-confirmation actions taken by the confirmed debtor or the trustee and the progress made toward substantial consummation of the plan; (B) the Debtor shall file a Notice of Substantial Consummation promptly upon TXEB Local Rules Revised: August 22, 2022 Page 21 of 83 (C) the occurrence of such event and serve such notice upon the master mailing list (matrix) as constituted by the Court on the date of service; and the Trustee shall file a Final Report and Account and Application for Final Decree promptly after the filing of the Notice of Substantial Consummation and through which the Trustee shall be discharged of all duties and the Chapter 11 case shall be closed. 2.

In a case filed under Chapter 11 in which the Debtor elects treatment under Subchapter V and in which non-consensual confirmation of the Chapter 11 plan was accomplished under § 1191(b): (A) (B) (C) the Debtor shall file a Notice of Substantial Consummation promptly upon the occurrence of such event and serve such notice upon the master mailing list (matrix) as constituted by the Court on the date of service; the Trustee shall file, for the duration of the period in which the Debtor must tender projected disposable income or equivalent values of property under the confirmed plan as required under § 1191(c)(2) (the “Non- Consensual Commitment Period”), a status report on each anniversary date of the entry of the confirmation order which outlines the status of payments made by the Debtor and distributed by the Trustee in the past year and any other post-confirmation action taken toward consummation of the plan and serve that report upon the master mailing list (matrix) as constituted by the Court on the date of service; the Debtor shall file, upon completion of the Non-Consensual Commitment Period, a Motion for Entry of Discharge Upon Completion of Non-Consensual Commitment Period pursuant to LBR 4004(c) which documents that all payments of projected disposable income or equivalent values of property by the Debtor under the confirmed plan as required under § 1191(c)(2) have been completed and that all other prerequisites for the entry of an order of discharge pursuant to 11 U.S.C. § 1192 have been fulfilled; and (D) the Trustee shall file, upon entry of the Debtor’s discharge, a Final Report and Account and Application for Final Decree through which the Trustee shall be discharged of all duties and the Chapter 11 case shall be closed. TXEB Local Rules Revised: August 22, 2022 Page 22 of 83 Local Rule of Bankruptcy Procedure 2016-1.

COMPENSATION FOR SERVICES RENDERED AND REIMBURSEMENT OF EXPENSES.

(a) Form of Application An application for compensation and reimbursement of expenses must: (1) (2) (3) (4) (5) (6) (7) contain all information required by Fed. R. Bankr. P. 2016(a); disclose the name, hourly rate and work experience of each professional performing services for which compensation is sought; comply with the United States Trustee guidelines, when total requested fees and expenses exceed $10,000.00; bill travel time at half-rate unless work was done during travel, in which case the time may be billed at full rate; comply with the expense guidelines set forth in TXEB Appendix 2016; contain the 21-day negative notice language described in LBR 9007(a); contain a certificate of service reflecting service as required under subsection (c) of this rule; and (8) attach a proposed order granting the application. (b) Time Records Required All professionals submitting an application under this rule, except auctioneers, real estate brokers, and appraisers, or professionals retained on a fixed-fee or contingent-fee basis, must keep accurate and contemporaneous time records. (c) Service A complete copy of the application, including all exhibits thereto, must be served on the debtor or the debtor's counsel, the trustee or the trustee's counsel, attorneys for any court-appointed committees, and the United States Trustee. The applicant must serve a summary of the fee application upon the master mailing list (matrix) as constituted by the Court on the date of service which: (1) identifies the applicant and the capacity of such applicant; TXEB Local Rules Revised: August 22, 2022 Page 23 of 83 (2) identifies the title of the application and the date it was filed, (3) identifies the amounts sought by the application; (4) identifies the time period covered by the application; (5) contains the 21-day negative notice language described in LBR 9007(a); and (6) contains a notice that a complete copy of the application will be sent to any requesting party at no charge.

If the fee exhibit to the application exceeds twenty-five (25) pages, the applicant must deliver a paper copy of the complete application, including all exhibits thereto, to the Clerk for use by the assigned judge per TXEB Appendix 5005. (d) Multiple Cases In cases involving multiple estates -- absent substantive consolidation or special court order -- a separate fee application must be filed for each case, and the detail of services and expenses must be apportioned to each estate or charged to the appropriate estate. (e) Pre-Petition Retainers 1. 2.

Any professional, regardless of whether employment of that professional must be approved under §§ 327 or 1103 of the Bankruptcy Code, must deposit any pre- petition payment for prospective services (i.e., a “security retainer”) into a trust or IOLTA account. Except as otherwise authorized under these Local Rules, the security retainer must remain in the account until the Court enters an order allowing removal. This requirement shall not apply to pre-petition payments constituting a classic or advance payment (flat fee) retainer, although such retainer must be disclosed pursuant to Fed. R. Bankr. P. 2016(b) and is subject to review under §329 of the Bankruptcy Code. (f) Post-Petition Retainers 1.

Unless otherwise authorized by the Court or these Rules, any post-petition payment received by a professional from the debtor or any other person for the benefit of the debtor must be disclosed to the Court and deposited into a trust or IOLTA account as a security retainer. This rule shall not apply to a post-petition TXEB Local Rules Revised: August 22, 2022 Page 24 of 83 payment tendered by a Chapter 7 debtor with funds which do not constitute property of the bankruptcy estate. 2. Unless the Court orders otherwise, any post-petition payment must remain in the trust or IOLTA account until the Court enters an order allowing its removal.

Any motion seeking such removal may be combined with an application for an award of post-petition fees and expenses. The motion must contain the 21-day negative notice language described in LBR 9007(a) and shall be served upon the parties designated by LBR 9013(f). A proposed order shall accompany the motion. (g) Motion for Distribution of Retainer in Chapter 11 and 12 Cases A motion for distribution of a retainer received by a professional in a Chapter 11 or 12 case may be filed on a monthly basis.

Such motion must, at a minimum: (1) (2) (3) (4) (5) contain all information required by Fed. R. Bankr. P. 2016(a); disclose the name, hourly rate and work experience of each professional performing services for which compensation is sought; meet the travel time and expense guidelines referenced in LBR 2016(a); utilize the 14-day negative notice language described in LBR 2014(a); contain a certificate of service reflecting service on the United States Trustee, the trustee (if one has been appointed), the ten (10) largest unsecured creditors or any committee appointed under the Bankruptcy Code or its authorized agent, and any party which has filed a notice of appearance or request for notice in the case; and (6) attach a proposed order granting the motion. The motion for distribution of retainer shall be treated as an application for interim compensation under §331 of the Bankruptcy Code and, if no objection is filed within 14 days of the service thereof, the filing professional may withdraw from the retainer the amounts set forth as interim compensation without the necessity of a formal order. (h) Attorney's Fees in Chapter 13 Cases 1. The allowance of compensation and expense reimbursements for an attorney for TXEB Local Rules Revised: August 22, 2022 Page 25 of 83 a Chapter 13 debtor shall encompass pre-petition and post-petition services rendered and expenses incurred prior to the earlier of: (1) the first successful post-confirmation modification of a Chapter 13 plan which occurs subsequent to the filing of the Trustee’s Reconciliation Concerning Claims; or (2) the filing of a certification by the Chapter 13 Trustee that all proofs of claim have been reconciled with the terms of the confirmed plan without the necessity of a plan modification (the “Benchmark Fee Period”).

Such compensation shall be determined by the timely filing of a formal fee application in compliance with the requirements of this rule unless the attorney elects in the plan for the compensation to be determined by the benchmark fee amounts listed below according to the applicable circumstances: (A) (B) If the attorney has not rendered legal services pertaining to automatic stay litigation arising during the Benchmark Fee Period, a formal fee application is not required so long as the attorney requests $4,500 or less for the Benchmark Fee Period. The $4,500 benchmark fee shall include all pre-petition payments received by such attorney. This threshold amount may be increased by $500 in a case involving a debtor engaged in business when so certified by the Chapter 13 Trustee. If the attorney has rendered legal services pertaining to automatic stay litigation arising during the Benchmark Fee Period, a formal fee application is not required so long as the attorney requests $5,000 or less for the Benchmark Fee Period.

The $5,000 benchmark fee shall include all pre-petition payments received by such attorney. This threshold amount may be increased by $500 in a case involving a debtor engaged in business when so certified by the Chapter 13 Trustee. 2. If an attorney for a Chapter 13 debtor elects to file a formal fee application for fees and expenses incurred during the Benchmark Fee Period, such application shall be filed no later than 30 days after the expiration of the Benchmark Fee Period as outlined in subsection (h)(1).

If no formal fee application is filed by that deadline, the allowed compensation awarded to the debtor’s attorney for services rendered in the Benchmark Fee Period shall revert to the applicable benchmark amounts authorized by subsection (h)(1) without the necessity of any further motion, notice or hearing. 3. The Chapter 13 trustee shall review a formal fee application and may file an objection or a comment. TXEB Local Rules Revised: August 22, 2022 Page 26 of 83 4.

5. 6. 7. 8.

9. Unless the Court orders otherwise, the entry of a Chapter 13 confirmation order shall authorize an attorney for a Chapter 13 debtor to withdraw a retainer in full or partial satisfaction of the attorney's outstanding fee without the necessity of a formal order. Fees in excess of the retainer held by an attorney for a Chapter 13 debtor must be paid through the Chapter 13 plan as a Bankruptcy Code § 503(b)(2) administrative expense. To obtain compensation for legal services rendered to a Chapter 13 debtor during any period subsequent to the Benchmark Fee Period outlined in subsection (h)(1), a formal fee application must be filed for allowance of such fees and expenses, unless such services pertain to a successful post-confirmation modification of a Chapter 13 plan achieved during such subsequent time period and either: (a) (b) such modification motion contains a detailed request for the award of such fees; or the award of fees requested for such modification motion is $650.00 or less.

To obtain a fee award from the funds held by the Chapter 13 Trustee that are otherwise subject to return to the debtor under §1326(a)(2) because the case has been dismissed prior to the entry of a plan confirmation order, the attorney must file an “Application for Administrative Expense by Chapter 13 Debtor’s Attorney” which shall contain 21-day negative notice language and shall be served only upon the debtor(s) and any other party otherwise entitled to a share of those funds pursuant to an order of the Court. Unless otherwise ordered by the Court, such application must be filed prior to the dismissal of the case or it will be terminated without notice. If the application has not completed the required notice period prior to the dismissal of the case, the Court shall retain jurisdiction to consider the application when ripe for adjudication pursuant to the authority recognized in Querner v. Querner (In re Querner), 7 F.3d 1199 (5th Cir. 1993) without the necessity of an order specifically retaining jurisdiction for that purpose.

A party in interest always has the right to object to the reasonableness of a fee request. This rule does not establish minimum, maximum, or average fees, nor does it establish the reasonableness of a fee in a particular case. The amount of the benchmark fee amounts as outlined in subsection (h)(1) may be adjusted from time to time by general order of the Court and these rules updated TXEB Local Rules Revised: August 22, 2022 Page 27 of 83 accordingly. The amount of the fee for a successful post-confirmation modification of a Chapter 13 plan as outlined in subsection (h)(6) may be adjusted from time to time by general order of the Court and these rules updated accordingly.

(i) (j) Substitution of Attorney for Debtor In addition to filing a statement under Fed. R. Bankr. P. 2016(b), an attorney who enters a case as substitute counsel for the debtor shall file a Notice of Appearance in that case, with notice to the master mailing list (matrix) as constituted by the Court on the date of service, which clearly sets forth the substitution of counsel. Application for Chapter 7 Trustee’s Compensation and Expenses Consideration of an application for compensation (commission) and reimbursement of expenses filed by a Chapter 7 Trustee shall be governed by the 30-day process outlined in the “Notice of Trustee’s Final Report and Application for Compensation and Deadline to Object to TFR” issued in such Chapter 7 case. TXEB Local Rules Revised: August 22, 2022 Page 28 of 83 PART III: CLAIMS AND DISTRIBUTION TO CREDITORS AND EQUITY INTEREST HOLDERS; PLANS