Filing Proof of Claim; Transfer of Claim.

(a) Filing Proof of Claim. (i) (ii) Paper Claims. When filing a paper proof of claim in a chapter 7, 12, or 13 case, or in a chapter 11 case with no claims agent, the creditor must also: (A) provide the Clerk with the original proof of claim and 1 copy for the trustee and (B) serve a copy on debtor’s counsel or, if the debtor is not represented by counsel, the debtor. If a creditor filing a proof of claim by mail wishes to receive a clocked-in copy by return mail, then the creditor must include an additional copy of the proof of claim and a self-addressed, postage-paid envelope.

Electronic Claims. A claim submitted through a Court-approved electronic claims filing system is considered the original proof of claim, and no copy of the proof of claim need be provided to the Clerk, trustee, or debtor’s counsel, but if the debtor is not represented by counsel, then the creditor must serve a copy of the proof of claim on the debtor. Transfer of Claim. A transfer of claim filed under Fed. R. Bankr. P. 3001(e)(2) or (4) must substantially conform to Local Form 138, including by specifying the claim number.

Claims Bar Date in Subchapter V Cases. In a subchapter V case, the general claims bar date is 60 days after the order for relief and the governmental units claims bar date is 180 days after the order for relief, unless a different deadline is set by Court order or the Code. (b) (c) 25 Rule 3007-1 Omnibus Objection to Claims. (a) (b) Scope of Rule.

This Local Rule applies to an omnibus objection to claims. An omnibus objection is an objection that objects to claims filed by different claimants. This Local Rule governs omnibus objections to the extent inconsistent with Fed. R. Bankr. P. 3007. Filed vs. Scheduled Claim.

The debtor may not object to a claim if (i) the claim has been scheduled on the debtor’s schedules of liabilities and is not listed as disputed, contingent, or unliquidated and (ii) no proof of claim has been filed under Fed. R. Bankr. P. 3003, 3004 or 3005. Instead, the debtor must amend its schedules under Fed. R. Bankr. P. 1009 and provide notice as required by Local Rule 1009-2. (c) Substantive vs. Nonsubstantive Objections. An omnibus objection is deemed to be made on a substantive basis unless it is based on the following: (i) Duplicate claim, but a claim filed against two or more different debtors is not a duplicate claim unless the debtors’ estates have been substantively consolidated; (ii) Claim filed in the wrong case; (iii) Amended or superseded claim; (iv) Late filed claim; (v) Stockholder claim based on stock ownership, but not a stockholder claim for damages; (vi) Claim that does not have a basis in the debtor’s books and records and does not include or attach information or documents sufficient to constitute prima facie evidence of the validity and amount of the claim under Fed. R. Bankr. P. 3001(f).

An objection under this subsection must be supported by an affidavit stating that affiant (i) has reviewed the claim and all supporting information and documents provided with the claim, (ii) believes that the documentation does not provide prima facie evidence of the validity and amount of the claim and (iii) cannot ascertain a basis for the claim after a reasonable review of the debtor’s books and records; (vii) Claim that is objectionable under 11 U.S.C. § 502(e)(1); (viii) Claim for priority in an amount that exceeds the maximum amount under 11 U.S.C. § 507; (ix) Reclassifying a claim to a higher priority; and (x) Modifying a claim amount to a higher amount. (d) General Requirements for Objections. (i) Objection. An objection must conform to the following requirements: 26 (A) The objection must be filed as either substantive or nonsubstantive, but not both.

A claim may be subject to both a substantive and a nonsubstantive objection if filed separately; (B) The objection’s title must state clearly whether the objection is on substantive or nonsubstantive grounds; (C) Objections must be numbered consecutively regardless of basis, e.g., First Omnibus (duplicate), Second Omnibus (amended and superseded); not First Omnibus (duplicate), First Omnibus (amended and superseded); (D) (E) The objection must attach exhibits identifying the claims to which the objection relates; and The objection must contain a statement that the objection complies with this Local Rule. (ii) Affidavit Required. Each objection must be supported by an affidavit stating that the information contained in the objection’s exhibits is true and correct to the best of the affiant’s knowledge and belief. (iii) Exhibits.

An exhibit attached to an objection must substantially conform to Local Form 113 and meet the following requirements: (A) Contain only those claims to which there is one common basis for objection (e.g., exhibit A duplicate claims; exhibit B amended or superseded claims); (B) Include only one basis for objection; (C) List claims alphabetically by the last name of individual claimant and the name of entity claimant; and (D) Provide sufficient detail as to why the claim should be disallowed. (iv) Notice of Objection to Claim Holder. The party filing the objection must serve each affected creditor with either (i) a Notice of Objection to Claim substantially conforming to Official Form B420B or (ii) a copy of the objection. (v) Counsel Certification Regarding Late Claims.

If (A) the basis for a claim objection is that the claim was filed late, and (B) the claim was one that amended or superseded an earlier filed claim, then the claim objection must include a certification from the objector’s counsel that either (y) the earlier filed claim was also late, or (z) the earlier filed claim was timely but the amending or superseding claim asserts new claims not asserted in the previously filed claims that do not relate back to the claims asserted in the earlier filed claim. 27 (vi) When Copies of Proofs of Claim Are to Be Provided to the Court. (A) Except as set forth in this Local Rule, copies of proofs of claim need not be provided to the Court. (B) When the objection is substantive or based on Local Rule 3007-1(c)(iii), (iv), (vi), (ix), or (x), then copies of the proof of claim and all supporting documentation must be provided to the Court as follows, unless the presiding Judge’s procedure provides otherwise: (1) (2) (3) At least 14 days before the hearing on the objection, the objector must file and deliver to the presiding Judge’s chambers a Notice of Submission of Proofs of Claim, along with the objection and copies of the proofs of claim.

The notice must also state that copies of the proofs of claim can be requested from the objector’s counsel. The notice must be served on all parties who have requested notice under Fed. R. Bankr. P. 2002; The proofs of claim must be in a binder and separated by tabs; and The proofs of claim must be in the order as listed in the exhibit, and, where there is more than one exhibit, each exhibit’s proofs of claims must be separated by additional tabs indicating to which exhibit the claims relate. (e) Requirements Relating to Substantive Objections. The following apply to substantive objections: (i) The objection may contain no more than 100 claims.

(ii) No more than 3 substantive objections may be filed in a calendar month. (iii) The Court may grant leave from the requirements of subsections (e)(i) and (e)(ii) of this Local Rule upon a motion filed and heard before the objection is filed. (iv) Unless the basis for the objection is incorrect classification of a claim, the objection must include all substantive objections to the claim: (v) An objection based on incorrect classification of a claim must provide in the title— or otherwise conspicuously state—that substantive rights may be affected by the objection and by any further objection that may be filed. (vi) Once a creditor responds to an objection, the objector may only amend the objection with respect to the creditor’s claim with the creditor’s written consent or the court’s leave.

(f) Remote Appearance by Pro se Claimant Permitted. A pro se claimant may attend the hearing on an objection remotely using the Court’s eCourtAppearances procedures. 28 (g) (h) Responses to Objection. The deadline to respond to an objection must be at least 21 days after the objection is filed and at least 7 days before the hearing.

Hearings on Objections and Responses. Hearings on objections, and any response thereto, may ordinarily be held on the regularly scheduled omnibus hearing dates in chapter 11 cases, consistent with these Local Rules. If the Court determines that the hearing on a particular objection will require substantial time for argument or evidence, then the Court, in its discretion, may reschedule the hearing on that claim for a different hearing date and time. The parties may also request that a separate hearing on an objection based on substantive grounds be scheduled for a date and time convenient to the Court and the parties.

29 Rule 3011-1 Deposit or Release of Funds Paid into the Registry of the Court. (a) (b) Deposit of Funds. Funds may only be deposited into the Registry of Court upon motion specifying the amount to be deposited and the reason for the deposit. If the deposit is for unclaimed distributions, then the movant must also specify the list of payees, including the last four digits of each payee’s taxpayer identification number (which may be redacted under Local Rule 9037-1(b , each payee’s last known address, the amount due to each payee and why the distributions did not occur to the payees.

Application for Withdrawal of Funds. An application for the withdrawal of funds paid into the Registry of the Court must conform to Local Form 127. The applicant must redact confidential information from the publicly-filed application and any exhibit, and deliver an unredacted copy of the application and exhibit to the Clerk’s Office in a sealed envelope. 30 Rule 3015-1 Chapter 12 Plan and Confirmation Requirements.

(a) (b) (c) (d) (e) Chapter 12 Plan Filed with Petition. The Court must serve a chapter 12 plan that is filed with the petition. Chapter 12 Plan Filed After Petition. The debtor must serve a chapter 12 plan filed after the petition date—along with a notice scheduling the hearing to consider confirmation of the plan—on the chapter 12 trustee, all creditors, and all parties that requested notice.

The notice must (i) give at least 28 days’ notice of the confirmation hearing, unless the Court fixes a different time, and (ii) set a deadline for filing and serving objections to confirmation of the plan that is at least 7 days before the hearing. Objection to Plan Confirmation. An objection to confirmation of the plan must be served on the debtor, the debtor’s counsel, the chapter 12 trustee, and all parties that requested notice. Amended Plan.

If the debtor amends the plan before the confirmation hearing, then the debtor must serve the parties specified in subsection (b) of this Local Rule with a copy of the amended plan and a new notice of hearing at least 7 days before the confirmation hearing. Proposed Plan Confirmation Order. The debtor must file a proposed order confirming the plan that recites the requirements of the plan and the Court’s findings under 11 U.S.C. § 1225. 31 Rule 3016-1 Amended Plan and Disclosure Statement.

When a plan proponent files an amended plan, disclosure statement, or related document, the proponent must also file a redline against the last-filed version. 32 Rule 3016-2 Required Forms in Subchapter V Cases. (a) (b) Subchapter V Status Report. A subchapter V debtor must file a status report—substantially conforming to Local Form 136—at least 14 days before the initial status conference.

Form of Subchapter V Plan. A subchapter V plan must substantially conform to Local Form 137. 33 Rule 3016-3 Plan Supplements. Unless the Court orders otherwise, the plan proponent must file any plan supplement at least 7 days before the earlier of (a) the deadline to submit ballots to vote to accept or reject the plan, and (b) the deadline to object to confirmation of the plan.

34 Rule 3017-1 Approval of Disclosure Statement. (a) (b) Hearing on Disclosure Statement. The plan proponent must obtain a disclosure statement hearing date from the Court. Unless the Court orders otherwise, the notice served under Fed. R. Bankr. P. 2002(b) and 3017 must provide at least 35 days’ notice of the disclosure statement hearing and at least 28 days’ notice of the deadline to object to approval of the disclosure statement.

Voting Procedures. The plan proponent must file a motion to approve the voting procedures— including the form of ballots, the voting agent, and the time and manner of voting—at least 21 days before the disclosure statement hearing. 35 Rule 3017-2 Combined Hearing on Disclosure Statement Approval and Plan Confirmation in a Chapter 11 Case. (a) (b) Application.

This Local Rule applies when a plan proponent requests a combined hearing on disclosure statement approval and plan confirmation, except a prepackaged plan. Interim Disclosure Statement Approval; Solicitation Procedures and Scheduling Combined Hearing on Approval of Disclosure Statement Adequacy and Plan Confirmation. (i) (ii) Motion Required. A plan proponent may file a motion requesting, as applicable, (A) authority to combine the plan and disclosure statement into a single document; (B) interim disclosure statement approval; (C) approval of solicitation procedures; and (D) scheduling a joint hearing to consider final approval of the adequacy of the disclosure statement and confirmation of the proposed plan.

Notice, Objection Deadline, and Hearing. The motion must be filed at least 21 days before the hearing and be served on the parties listed in Local Rule 2002-1(b), and, if the debtor issued publicly traded securities, the SEC. The claims agent must also post the notice on the case website. If no objection is filed within 14 days after the motion is served, then the Court may grant the motion without a hearing. (iii) Contents of Motion.

The motion must identify the proposed balloting agent and any voting procedures. (iv) Certification. The motion must certify that the notice of the deadline to object to final approval of the adequacy of the disclosure statement and confirmation of the proposed plan will comply with Fed. R. Bankr. P. 2002(b), and that the proposed date for the joint hearing will be at least 7 days after the deadline, unless the Court orders otherwise. (v) Proposed Order.

The motion must be accompanied by a proposed order that: (A) Sets the joint hearing date; (B) Approves the disclosure statement on an interim basis; (C) Approves the voting procedures, including establishing a record date under Fed. R. Bankr. P. 3017(d) and 3018(a) and a voting deadline at least 10 days before the joint hearing; (D) Approves the form of notice to be provided to creditors and interest holders; and (E) Approves the form of ballot, and, if the plan seeks a consensual third-party release or injunction, then the ballot must disclose the release or injunction and describe how to assent to or oppose the release or injunction. 36 Rule 3017-3 Length of Papers Filed in Support or Opposition to Disclosure Statement Approval and Plan Confirmation. Absent the Court’s leave, an objection to disclosure statement approval or plan confirmation may not exceed 40 pages and a brief responding to objections and supporting disclosure statement approval or plan confirmation may not exceed 60 pages, in each case excluding tables, exhibits, addenda and other supporting materials. A brief need not repeat facts contained in any affidavit filed concurrently with the brief.

37 Rule 3017-4 Scheduling Confirmation Hearing in Subchapter V Cases. After a subchapter V debtor files the plan required by 11 U.S.C. 1189(a), the debtor must promptly proceed with scheduling a plan confirmation hearing in consultation with the U.S. Trustee and the subchapter V trustee. If no confirmation hearing has been set by the Court within 60 days after the filing of the plan, then the debtor, in consultation with the U.S. Trustee and the subchapter V trustee, shall request a status conference with the Court to discuss the status of the case, including scheduling a confirmation hearing. 38 Rule 3022-1 Final Decree in Chapter 11 Cases.

(a) Motion for Final Decree. A motion for final decree must include a proposed final decree order that orders the closing of the case and identifies in the caption and in the body of the order the case name and case number of each case to be closed under the order. (i) (ii) Serving the Motion. The motion must be served on the parties listed in Local Rule 2002-1(b) at least 21 days before the hearing.

Final Report. The debtor or trustee must file a final report and account at least 14 days before the hearing on the motion. (b) Individual Debtor’s Discharge. To obtain a discharge, an individual debtor who has completed plan payments must file a request for a discharge substantially conforming to Local Form 104A.

39 Rule 3023-1 Special Procedures in Chapter 13 Matters. (a) Application. This Local Rule governs chapter 13 cases. (b) Section 1326 Payments.

(i) (ii) The debtor must, after commencing timely payments as required by 11 U.S.C. § 1326(a)(1), continue to make subsequent payments to the trustee in accordance with the proposed plan until the trustee or Court directs otherwise. If the proposed plan provides for payment of secured debt through the plan and the debtor is making timely pre-confirmation payments to the trustee, then the debtor need not continue to make regular payments directly on the secured debt. If the proposed plan provides for direct payments to a secured creditor, or if no proposed plan is filed on the petition date, then the debtor must continue to make regular payments to the secured creditor as and when due. (c) Chapter 13 Plan and Plan Analysis.

(i) Filing of Plan and Nonstandard Plan Provisions. (A) Filing of Plan. On the petition date, or within 14 days of conversion to chapter 13, the debtor must file a proposed plan in the form of Local Form 103, together with a plan analysis in the form of Local Form 103A. If a plan or plan analysis is filed after that time, the debtor must serve the plan and plan analysis on all creditors in accordance with Fed. R. Bankr. P. 2002 and file a certificate of service.

(B) Nonstandard Plan Provisions. If the proposed plan contains any nonstandard provisions, then the plan must disclose that fact in the notice section in the first paragraph of the plan. Examples of nonstandard provisions include the following: (1) (2) (3) (4) Debtor is self-employed and operating a business and therefore has additional duties and reporting requirements including timely submission of tax returns and employee tax withholdings; Debtor holds a personal injury, worker’s compensation, or social security claim, and debtor’s duty to report and disclose; Debtor’s current or future intent to sell or refinance real estate, court approval required, and, if sold or refinanced, how liens and mortgage arrears claims will be addressed; Debtor to seek a mortgage modification and pending any modification whether ongoing payments will continue; 40 (5) (6) (7) (8) Plan includes the cramdown of a secured vehicle claim and specific provisions as to lien and title release; Plan includes avoidance of junior liens on real estate, adversary to be filed, and treatment as to the unsecured claim of an avoided lienholder; Provision as to the treatment of claims and any unsecured deficiency of creditors where collateral is surrendered under the plan; Any matter relating to a domestic support obligation, divorce or property division; or (9) Plan seeks to avoid a lien pursuant to 11 U.S.C. § 522(f). (ii) Mortgage Claims and Procedures.

(A) (B) (C) (D) (E) If servicers/mortgagees include a flat fee cost in the proof of claim for review of the chapter 13 plan prior to confirmation and for the preparation of the proof of claim, it must be reasonable and fairly reflect the attorney’s fee included. A postpetition charge for the review of a chapter 13 plan and/or the preparation of a proof of claim may be asserted in the servicer/mortgagee’s proof of claim that asserts prepetition claims; If servicers/mortgagees include attorney fees for pursuing relief from stay, such fees must be clearly identified as well as how such fees are to be paid in any agreed order resolving a motion for relief from stay or any other matter before the Court; Servicers/mortgagees must analyze the loan for escrow changes upon the filing of a bankruptcy case and each year thereafter. A copy of the escrow analysis must be provided to the debtor and filed with the Court by the servicers/mortgagees or their representative each year; Servicers/mortgagees may not include any prepetition cost or fees or prepetition negative escrow in any postpetition escrow analysis. These amounts must be included in the prepetition claim amount unless the payment of such fee or cost was actually made by the servicer; Servicers/mortgagees must attach a statement to a formal notice of payment change outlining all postpetition contractual costs and fees not previously approved by the Court and due and owing since the prior escrow analysis or date of filing, whichever is later.

This statement need not contain fees, costs, charges and expenses that are awarded or approved by Court order. In absence of any objection or challenge to such fees, the debtor must take appropriate steps to cause such fees to be paid as authorized by mortgage holder’s note, security agreement and state law; 41 (F) (G) (H) (I) (J) (K) (L) Servicers/mortgagees must monitor postpetition payments. If the mortgage is paid postpetition current, then the servicers/mortgagees may not seek to recover late fees. No late fees may be recovered or demanded for systemic delay but must be limited to actual debtor default; Prepetition payments must be tracked as applied to prepetition arrears and postpetition payments must be tracked as applied to postpetition ongoing mortgage payments; Servicers/mortgagees must file a notice and reason of any payment change with the court and provide same to the debtor; Servicers/mortgagees are required, at least annually, to file a notice of any protective advances made in reference to a mortgage claim, such as non- escrow insurance premiums or taxes.

Such notice must be provided to the debtors and filed with the Court; If appropriate, servicers/mortgagees should review the trustee’s website or National Data Center (“NDC”) to reconcile any payment discrepancies with their system prior to the filing of a motion for relief from stay; Servicers/mortgagees must clearly identify, in their proofs of claim, if the loan is an escrowed or non-escrowed loan and break out the monthly payment consisting of principal, interest, escrow and PMI components; Servicers/mortgagees must attach to their proofs of claim or otherwise identify non- traditional or non-conforming mortgage loans in their proof of claim. Servicers/mortgagee’s holding loans with options should identify on the proof of claim the type of loan as well as the various contractual payment options available during the bankruptcy to the borrower/debtor; (M) Mortgage Arrearage Claims. When filing their initial proofs of claims, servicers/mortgagees should state their mortgage arrearage up to the bankruptcy petition date, unless the plan or trustee indicates otherwise or these Rules provide otherwise. The chapter 13 trustee will use the mortgage arrearage claim to set up the arrearage balance on the claim, which in turn will show up as the “balance” on the voucher check, absent objection to the claim; (N) Within thirty (30) days after the debtor completes all payments under the plan, the trustee will file and serve a Notice of Final Cure and Completion of Plan Payments on the servicer/mortgagee, debtor and debtor’s counsel.

Within twenty-one (21) days of service of this Notice the debtor must file an executed Local Form 104, and the servicer/mortgagee must file and serve on the debtor, debtor’s counsel and the trustee an itemized statement as required under Fed. Bankr. Rule 3002.1(g) indicating whether it agrees that the debtor has paid in full the amount required to cure any default and whether the debtor is otherwise current on all payments. Absence of the 42 filing of the servicer/mortgagee statement will be deemed consent to the contents of the Notice of Final Cure and Completion of Plan Payments. Should the servicer/mortgagee file a response under Fed. Bankr. Rule 3002.1(g) alleging unpaid cure amounts due, within twenty-one (21) days of the filing of the response, and if the response asserts unpaid plan arrears amounts, the trustee must submit to the servicer/mortgagee evidence of payments made for any allowed arrears claim paid under the plan and file a certification with the Court If the response asserts unpaid postpetition amounts not paid under the plan, the debtor must submit to the servicer/mortgagee evidence of payments for all required postpetition amounts due and file a certification with the Court. If a party fails to timely comply with the requirements of this Local Rule, the Court may, after notice and hearing, take such action as appropriate including the actions set forth in Fed. Bankr. Rule 3002.1(i).

The submissions must be considered by the Court along with the Notice of Final Cure, the response and itemized statement, upon notice and hearing scheduled pursuant to Fed. Bankr. Rule 3002.1(h). The date of the Notice of Final Cure will be the operative date for determination of the amount due for any default. Thereafter, upon issuance of a discharge, a servicer/mortgagee must adjust its permanent records to reflect the current nature of debtor(s) account. Servicers/mortgagees should review the trustee’s website or NDC at the close or discharge of the bankruptcy to reconcile any payment discrepancies with their system.

If the debtor elected to defer the payment of approved postpetition charges until the conclusion of the case’s administration, then a servicer/mortgagee will be authorized to collect said sums in accordance with the provisions of its note, security agreement and state law. If such an election was not made by the debtor, the mortgage must be reinstated according the servicer/mortgagee or its assignee(s) to recover any amounts alleged to have arisen prior to the date of the trustee’s filing of a Request for Discharge of Debtor(s) and entry of order deeming any mortgage current; terms, extinguishing any right of its original to (O) Prior to filing a motion (other than a motion for relief from stay) to enforce any mortgage claim, the notice requirements hereunder or plan provisions governing mortgage claims, the moving party must attempt to confer in good faith with the affected parties in an effort to resolve the dispute without Court action. All such motions must include a certification of counsel by Delaware counsel that a good faith attempt to confer was so made; and (P) All statements, notices, escrow analysis or similar documents required under this Local Rule to be filed with the Court by servicers/mortgagees need not be signed or filed by an attorney or an attorney of record. 43 (d) Amended Plans.

(i) If an amended plan is filed before the scheduled confirmation hearing on the previously filed plan, it must be accompanied by a certificate of service. The certificate of service should evidence that a copy of the amended plan has been served on each of the creditors listed in the chapter 13 Schedules and Statement of Financial Affairs, the chapter 13 trustee and the U.S. Trustee, in such a manner so as to ensure that such parties receive the amended plan no less than seven (7) days prior to the confirmation hearing. When a plan is confirmed on an interim basis, any subsequent plan filed prior to the final confirmation should be filed and titled an “Amended Plan” and should be noticed by the debtor or debtor’s counsel. A certificate of service therefor should be filed with the Court.

(ii) Any motion to modify a plan after confirmation must be noticed by the Court. (e) (f) (g) (h) Distribution. Before commencing distribution of the debtor’s funds under a confirmed plan, the trustee must mail to the debtor a copy of the debtor’s master report reflecting those creditors that have or have not filed proofs of claim. The trustee may not distribute funds to any creditor unless a proof of claim has been (i) filed and deemed (ii) allowed or allowed by Court order.

Plan Funding. In all plans, funding must be by payroll deduction unless otherwise agreed by the trustee or ordered by the Court upon a demonstration of cause shown by the debtor. A wage order must be submitted by the debtor at the time the plan is confirmed by the Court in conformity with Local Form 135. Confirmation.

If timely pre-confirmation payments are made to the trustee and no objections are received, the plan may be confirmed without further notice or hearing upon the filing of a certificate by the trustee recommending that the Court confirm the plan. Discharge. Debtor and debtor’s counsel must file a certification substantially in the form of Local Form 104 in order to comply with 11 U.S.C. § 1328 and obtain a discharge upon completion of all plan payments. Failure to file the certification may be a basis for dismissal of the case.

44 PART IV.

THE DEBTOR: DUTIES AND BENEFITS