Local Rules

Rule 2016-2 Motion for Compensation and Reimbursement of Expenses.

  1. Scope of Rule.  This Local Rule applies to:                                                                                                                        
                                                                      
    1. Any motion of a professional person employed under 11 U.S.C. § 327, 328 or 1103 requesting approval for compensation and/or reimbursement of expenses; and
       
    2. Any request of an entity for payment of an administrative expense under 11 U.S.C. § 503(b)(3) or 503(b)(4).
       
  2. Effect of Rule.  Any such motion or request for payment, in addition to complying with the Code and the Fed. R. Bankr. P. applicable to the filing and the contents of such a motion, shall comply with the information and certification requirements listed in Local Rule 2016-2(c)-(f).  Any such motion not in compliance with these requirements will not be considered by the Court, unless a waiver is obtained under Local Rule 2016-2(g).
     
  3. General Information Requirements.                                                                                                                                                    
                                                        
    1. The motion shall include, as its first page(s), Local Form 101 and the information requested therein (categories given are examples).
       
    2. Immediately thereafter, the motion shall include Local Form 102 and the information requested therein (categories given are examples).  Where the applicant deems appropriate, the motion may also include a firm resume.
       
    3. The narrative portion of the motion shall inform the Court of circumstances that are not apparent from the activity descriptions or that the applicant wishes to bring to the attention of the Court, including special employment terms, billing policies, expense policies, voluntary reductions, reasons for the use of multiple professionals for a particular activity or reasons for substantial time billed relating to a specific activity.
       
  4. Information Requirements Relating to Compensation Requests.  Such motion shall include activity descriptions which shall be sufficiently detailed to allow the Court to determine whether all the time, or any portion thereof, is actual, reasonable and necessary and shall include the following:       
    1. All activity descriptions shall be divided into general project categories of time;
       
    2. All motions shall include complete and detailed activity descriptions;
       
    3. Each activity description shall include a time allotment;
       
    4. Activities shall be billed in tenths of an hour (six (6) minutes);
       
    5. Each activity description shall include the type of activity (e.g., phone call, research);
       
    6. Each activity description shall include the subject matter (e.g., exclusivity motion, section 341 meeting);
       
    7. Activity descriptions shall not be lumped – each activity shall have a separate description and a time allotment;
       
    8. Travel time during which no work is performed shall be separately described and may be billed at no more than 50% of regular hourly rates;
       
    9. The activity descriptions shall individually identify all meetings and hearings, each participant, the subject(s) of the meeting or hearing and the participant's role; and
       
    10. Activity descriptions shall be presented chronologically or chronologically within each project category.
       
  5. Information Requirements Relating to Expense Reimbursement Requests.                                                                                      
                                            
    1. The motion shall contain an expense summary by category for the entire period of the request.  Examples of such categories are computer-assisted legal research, photocopying, outgoing facsimile transmissions, airfare, meals and lodging.
       
    2. Following the summary, the motion shall itemize each expense within each category, including the date the expense was incurred, the charge and the individual incurring the expense, if available.
       
    3. The motion shall state the requested rate for copying charges (which shall not exceed $.10 per page), computer-assisted legal research charges (which shall not be more than the actual cost) and outgoing facsimile transmission charges (which shall not exceed $1.00 per page, with no charge for incoming facsimiles).
       
    4. Receipts or other support for each disbursement or expense item for which reimbursement is sought must be retained and be available on request.
       
  6. Reimbursement of Payments Made to Other Professionals.  If any entity subject to this Local Rule seeks reimbursement for any payment it made to another professional, such entity must provide, with respect to the services rendered or expenses incurred by such other professional, the information required by paragraphs (c), (d), and (e) hereof, unless a waiver is obtained under paragraph (h) hereof.
     
  7. Certification Requirement.  The motion shall also contain a statement that the professional person seeking approval of the motion has reviewed the requirements of this Local Rule and that the motion complies with this Local Rule.rt for each disbursement or expense item for which reimbursement is sought must be retained and be available on request.
     
  8. Waiver Procedure.  An employed professional person or entity within the scope of this Local Rule may request that the Court waive, for cause, one or more of the information requirements of this Local Rule.  Such a request should be made in the same motion in which the person seeks Court approval to be employed, or as soon as possible thereafter, and shall be served on debtor's counsel, counsel to any official committee and the United States Trustee.  The caption of any motion that contains a waiver request shall explicitly state that the person is seeking a waiver of one or more of the information requirements of this Local Rule.
     
  9. Form of Order.  The form of order submitted to the Court shall specifically recite the amounts requested in fees and in expenses.
     
  10. Fee Examiners.  The Court may, in its discretion or on motion of any party, appoint a fee examiner to review fee applications and make recommendations for approval.  On conversion, the authority of the fee examiner ends unless retained by the chapter 7 trustee or otherwise ordered by the Court.
     
  11. Final Fee Applications in Chapter 7 Asset Cases.  Estate professionals shall file final fee applications in chapter 7 asset cases but shall not notice the final fee application for hearing. Instead, the hearing date shall be stated as TBD.  The final fee application shall only be served upon the chapter 7 trustee and the United States Trustee.  After the Trustee Final Report is filed with the Court, the Court will (i) notice the hearing for the final fee application and provide for the objection deadline and (ii) serve the notice of the final fee application.  If the estate professional inadvertently notices a final fee application for hearing, it shall include language in the proposed form of order that “fees are subject to disgorgement pending approval of TFR.”   

Rule 3001-1 Filing Proof of Claim; Transfer of Claim

  1. Filing Proof of Claim.                                                                                                                                                    
                                                                                           
    1. Paper Claims.  Any entity filing a proof of claim in a chapter 7, 12 or 13 case shall provide the Clerk with the original proof of claim and one (1) copy for the trustee and shall serve a copy on debtor's counsel or the debtor, if pro se.  Any entity that files a proof of claim by mail and wishes to receive a clocked-in copy by return mail must include an additional copy of the proof of claim and a self-addressed, postage-paid envelope.
       
    2. Electronic Claims.  Claims submitted through a court-approved electronic claims filing system are considered the original proof of claim.  Additional copies for the Clerk and trustee are not required. Electronic claims shall be served on the debtor, if pro se.
       
  2. Transfer of Claim.  Any assignment or other evidence of a transfer of claim filed after the proof of claim has been filed shall include the claim number of the claim to be transferred.  Absent any timely filed objection to the notice of transfer served by the Clerk, the claim shall be, without any further order of the Court, noted as transferred on the records of the Court or the claims agent, if one is appointed.

Rule 3002-1 Government Deadline to File Proof of Claim.

  1. Chapter 11 Administrative Claims.  Notwithstanding any provision of a plan of reorganization, any motion, notice, or court order in a specific case, the government shall not be required to file any proof of claim or application for allowance for any claims covered by section 503(b)(1)(B), (C), or (D). 
     
  2. After Conversion to Chapter 7 Asset Case.  If notice of insufficient assets to pay a dividend was given to creditors under the Federal Rules or these Local Rules, and subsequently the trustee notifies the court that payment of a dividend appears possible, the clerk shall give at least ninety (90) days’ notice by mail to creditors of that fact and of the date by which proofs of claim must be filed.  In such case, the proof of claim deadline for governmental entities shall be the longer of 180 days after the petition was filed or ninety (90) days after the notice of assets was served or as otherwise provided in the Federal Rules. 

Rule 3003-1 Proofs of Claim in Chapter 11 Cases.

  1. Claims Agent Appointed.  Any entity filing a proof of claim in a chapter 11 case shall file the original and one (1) copy of the proof of claim with the claims agent and shall serve a copy on the trustee, if any, unless the claims agent accepts claims electronically, in which case only the electronically filed claim shall be submitted. 
     
  2. No Claims Agent Appointed.  Any entity filing a proof of claim in a chapter 11 case, where there is no claims agent appointed, shall file the proof of claim with the Clerk’s Office.                                                                                                                                                  
                                                                        
    1. When filing a paper claim, the entity shall file the original proof of claim and one (1) copy and shall serve a copy on the trustee, if any.  Any entity that files a proof of claim by mail and wishes to receive a clocked-in copy by return mail must include an additional copy of the proof of claim and a self-addressed, postage-paid envelope.
       
    2. Claims submitted through a court-approved electronic claims filing system are considered the original proof of claim.  Additional copies for the Clerk and trustee are not required. Electronic claims shall be served on the debtor, if pro se.

Rule 3007-1 Omnibus Objection to Claims.

  1. Scope of Rule.  This Local Rule applies to any objection to the allowance of a claim under an omnibus objection (i.e., an objection to claims asserted by more than one claimant) ("Objection").  To the extent of any inconsistency between this Local Rule and Fed. R. Bankr. P. 3007, this Local Rule governs omnibus objections to claims.
     
  2. Effect of Rule.  In addition to complying with those sections of the Code and those rules of the Fed. R. Bankr. P. generally applicable to an objection to the allowance of a claim, any Objection shall comply with the information and certification requirements listed in Local Rule 3007-1(c)-(f).
     
  3. Filed v. Scheduled Claim.  If a claim has been scheduled on the debtor's schedules of liabilities and is not listed as disputed, contingent or unliquidated and a proof of claim has not been filed under Fed. R. Bankr. P. 3003, 3004 and/or 3005, the debtor may not object to the claim.  Instead, the debtor must amend the schedules under Fed. R. Bankr. P. 1009 and provide notice as required by Local Rule 1009-2.
     
  4. Substantive v. Non-Substantive Objections.  An Objection is deemed to be on a substantive basis unless it is based on one or more of the following:
    1. A duplicate claim; provided, however, that a claim filed against two different debtors is not a duplicate claim unless the cases have been substantively consolidated by order of the Court;
       
    2. A claim filed in the wrong case;
       
    3. An amended or superseded claim;
       
    4. A late filed claim;
       
    5. A claim filed by a shareholder based on ownership of stock; provided, however, that an Objection with respect to a claim filed by a shareholder for damages shall be deemed a substantive Objection;
       
    6. A claim that does not have a basis in the debtor's books and records and does not include or attach sufficient information or documentation to constitute prima facie evidence of the validity and amount of the claim, as contemplated by Fed. R. Bankr. P. 3001(f); provided, however, that if the Court determines that the claim attaches or includes sufficient information or documentation and is otherwise in compliance with applicable rules, then the Objection shall be deemed substantive.  Any Objection under this subsection must be supported by an affidavit or declaration that states that affiant or declarant has reviewed the claim and all supporting information and documentation provided therewith, made reasonable efforts to research the claim on the debtor's books and records and believes such documentation does not provide prima facie evidence of the validity and amount of the claim;
       
    7. A claim that is objectionable under 11 U.S.C. § 502(e)(1); and
       
    8. A claim for priority in an amount that exceeds the maximum amount under 11 U.S.C. §  507 of the Code.
       
  5. General Requirements for Objections.
    1. Objection.  Each Objection shall conform to the following requirements:
      1. Each Objection shall be filed as either substantive or non-substantive, but not both.  A particular claim may be subject to both a substantive and a non-substantive Objection;
         
      2. The title of the Objection shall clearly state whether the Objection is on substantive or non-substantive grounds;
         
      3. Objections shall be numbered consecutively regardless of basis, i.e., 1st Omnibus (duplicate), 2nd Omnibus (amended and superceded); not 1st Omnibus (duplicate), 1st Omnibus (amended and superceded);
         
      4. Exhibit(s) of claims to which the Objection relates, which exhibit(s) shall be consistent with Local Rule 3007-1(e)(iii) and must be attached to the Objection; and
         
      5. The Objection shall also contain a statement by the objector or the objector's counsel that the Objection complies with this Local Rule.
         
    2. Affidavit or Declaration.  If an affidavit or declaration is filed in support of the Objection, it shall state that the information contained in the exhibit is true and correct to the best of the affiant's or declarant's knowledge and belief.
       
    3. Exhibits.

       

      1. Each exhibit attached to an Objection shall include, at a minimum, the information identified in the following table, with such information entered in the respective boxes as appropriate:

        (1)

        Name of Claimant

        (2)

        Claim Number

        (3)

        Claim Amount

        (4)

        Reason for Disallowance

         

         

         

         

         

         

         

         

         

      2.  

      3. Each exhibit shall 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).
         
      4. A claim for which there are two or more bases for objection (e.g., a claim that is both duplicative and late filed) shall be referenced on each applicable exhibit.
         
      5. Each exhibit shall have the claims listed alphabetically by the last name of the claimant (in the case of an individual) or the name of the entity (in the case of a corporation, partnership, limited liability company, etc.).
      6. If an Objection seeks to reduce the amount of a claim, a column shall be added between columns (3) and (4) titled "Modified Claim Amount" and column (4) shall be changed from "Reason for Disallowance" to "Reason for Modification."
        1. (1)

          Name of Claimant

          (2)

          Claim Number

          (3)

          Claim Amount

          Modified Claim Amount

          (4)

          Reason for Modification

           

           

           

           

           

           

           

           

           

           

        2. If an Objection seeks to change the classification of a claim, two columns shall be added between columns (3) and (4) titled "Claim Classification Status" and "Modified Classification Status" and column (4) shall be changed from "Reason for Disallowance" to "Reason for Reclassification."

          (1)

          Name of Claimant

          (2)

          Claim Number

          (3)

          Claim Amount

          Claim Classification Status

          Modified Classification Status

          (4)

          Reason for Reclassification

           

           

           

           

           

           

           

           

           

           

           

           

        3. If an Objection seeks to change the priority of a claim, two columns shall be added between columns (3) and (4) titled "Claim Priority Status" and "Modified Priority Status" and column (4) shall be changed from "Reason for Disallowance" to "Reason for Modification."

          (1)
          Name of Claimant

          (2)

          Claim Number

          (3)

          Claim Amount

          Claim Priority Status

          Modified Priority Status

          (4)

          Reason for Modification

           

           

           

           

           

           

           

           

           

           

           

           

        4. If an Objection seeks to disallow amended or duplicate claims, the title of column (2) shall be changed from "Claim Number" to "Remaining Claim Number" and a column shall be added between columns (2) and (3) titled "Duplicate or Amended Claim to be Disallowed."

          (1)

          Name of Claimant

          (2)

          Remaining Claim Number

          Duplicate or Amended Claim to be Disallowed

          (3)

          Claim
          Amount

          (4)

          Reason for Disallowance

           

           

           

           

           

           

           

           

           

           

        5. If an Objection seeks to disallow late filed claims, a column shall be added between columns (1) and (2) titled "Date Claim Filed."

          (1)

          Name of Claimant

          Date
          Claim

          Filed

          (2)

          Claim
          Number

          (3)

          Claim
          Amount

          (4)

          Reason for Disallowance

           

           

           

           

           

           

           

           

           

           

        6. Where the Objection is based on substantive grounds, the exhibit must include a claim-specific declaration in the column titled "Reason for Disallowance" giving sufficient detail as to why the claim should be disallowed.  The following are examples of "sufficient detail" necessary to sustain an Objection on a substantive basis:
          1. If the claim is against a non-debtor entity, then the non-debtor entity must be identified;
             
          2. If the claim has been paid or satisfied prepetition (not postpetition), then the check number and the date the check was issued must be identified.  (An objection to a claim on the basis that the claim has been paid or satisfied postpetition is not a valid objection); and
             
          3. If the claim includes a postpetition claim, then the date the postpetition claim arose must be identified.
             
      7. Proofs of Claim.  If the Objection is non-substantive, then copies of the proofs of claim need not be provided to the Court, except that proofs of claim and any attached supporting documentation relating to an Objection based on Local Rule 3007-1(d)(vi) (i.e., a claim without any supporting documents) shall be provided to the Court as set forth in Local Rule 3007-1(e)(iv)(A)-(C).  When the Objection is substantive, a copy of the proofs of claim and all supporting documentation shall be provided to the Court as follows:

         

        1. Proofs of claim shall be in a binder and separated by tabs;
           
        2. Proofs of claim shall be in the order as listed in the exhibit(s), with additional tabs indicating to which exhibit the claims relate; and
           
        3. At least fourteen (14) days before the hearing on the Objection, a Notice of Submission of Proofs of Claim is to be filed and delivered to the respective Judge's chambers with copies of the claims (with all attachments) along with the Objection to those claims.  The Notice of Submission of Proofs of Claim stating that the claims have been delivered to chambers and that copies can be requested from objector's counsel shall be served upon all parties requesting notice under Fed. R. Bankr. P. 2002.
           
      8. Notice of Objection to Claim Holder.  Each claim holder whose rights are affected by an Objection shall receive a "Notice of Objection to Claim" that shall conform to Local Form 113 or a copy of the Objection.
         
    4. Requirements Relating to Substantive Objections.
      1. As authorized by Fed. R. Bankr. P. 3007(c), the Court hereby orders that an Objection which is based on substantive grounds may contain more than one but no more than 150 claims, unless the Court orders otherwise.
         
      2. No more than two substantive Objections may be filed each calendar month, unless the Court orders otherwise.
         
      3. An Objection based on substantive grounds, other than incorrect classification of a claim, shall include all substantive objections to such claim.  All Objections based on incorrect classification of a claim shall provide in the title (or otherwise conspicuously state) that substantive rights may be affected by this Objection and by any further Objection that may be filed and shall otherwise comply with these Local Rules other than (i) and (ii) above.
         
      4. Fed. R. Bankr. P. 7015 shall apply to any substantive Objection and upon the filing of a response to such substantive Objection, the objector may only amend such Objection upon leave of court or written consent of the claimant; provided, however, that if an Objection to a particular claim is determined to be substantive under Local Rule 3007-1(d)(vi) or the claimant filed a response to an Objection made under Local Rule 3007-1(d)(vi) and the response included supporting documentation or information, then the Objection may be amended without written consent or leave of Court.
         
      5. The Court will not consider any substantive Objection to personal injury or wrongful death claims that would be in violation of 28 U.S.C. § 157(b)(2)(B).
         
    5. Pro Se.  Any claimant may participate pro se (and telephonically) at a hearing on an Objection to his or her claim by following the telephonic appearance procedures located on the Court's website.
       
    6. Responses and Replies to Objection.
      1. Response Deadline.  Any response to an omnibus objection shall be due no later than seven (7) days before the hearing date.  See also Del. Bankr. L.R. 9006-1. 
         
      2. Reply.  Reply papers may be filed and, if filed, shall be served so as to be received by 4:00 p.m. prevailing Eastern Time the day prior to the deadline for filing the agenda.  See also Del. Bankr. L.R. 9006-1.
         
    7. 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.  When the Court determines that the hearing on a particular claim Objection will require substantial time for the presentation of argument and/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(s) based on substantive grounds be separately scheduled for a date and time convenient to the Court and the parties.

     

     

     

      Rule 3011-1 Deposit or Release of Funds Paid into the Registry of the Court.

      The deposit or release of funds paid into the Registry of the Court shall be by motion in accordance with Del. Bankr. L.R. 9013-1. 

      1. Deposit of Funds. A motion for the deposit of funds paid into the Registry of the Court shall specify the amount to be deposited and the reason for the deposit.  If the deposit is for unclaimed distributions, then the movant shall also specify the list of payees (with the last four digits of taxpayer identification number, if available), the amount due to each payee and why the distributions did not occur to the payees. 
         
      2. Withdrawal of Funds.  In addition to the requirements set forth in 28 U.S.C. § 2042, any motion for the withdrawal of funds paid into the Registry of the Court shall (i) include a copy of the trustee's motion to deposit unclaimed funds into the registry of the Court, (ii) specify the amount to be withdrawn and state the name, address and the last four digits of taxpayer identification number of any entity to which funds are paid, (iii) specify the reason for the motion and proof of the right to payment for the entity to be paid and (iv) include a proposed order stating that the requested funds to be released be made payable to "the claimant, (name of claimant), c/o name of fund finder."  In addition, the motion shall be brought by (i) an attorney admitted to practice before the District Court or admitted pro hac vice in this Court for the case at hand, (ii) the claimant or its legal successor, (iii) the assignee of the claimant or its legal successor, or (iv) the attorney in fact for the claimant or its legal successor.   
         
      3. Service.  Any such motion for the deposit or withdrawal of funds shall be served upon the United States Trustee, the debtor or trustee, if any, and the original claimant or any assignee thereof.  If the funds have been deposited with the Court for at least five years, the motion for the withdrawal of funds shall be noticed to the United States attorney, in accordance with 28 U.S.C. § 2042. 

      Rule 3011-2 Motion for Release of Funds Paid into the Registry of the Court - Confidentiality.

      Any motion for release of funds previously paid into the registry of the Court or any exhibit in support thereof that contains confidential information regarding the claimant shall be filed with the Clerk with all confidential information redacted.  An unredacted copy of such motion or exhibit shall be delivered in a sealed envelope to the assigned judge.

      Rule 3015-1 Chapter 12 Plan and Confirmation Requirements

      1. If a Chapter 12 Plan is filed with the petition, the Court will serve the Plan.  If a Chapter 12 Plan is filed after the petition date, the debtor shall file and serve upon the Chapter 12 trustee, all creditors, and parties requesting service, the proposed plan and a notice scheduling the hearing to consider confirmation.  The notice shall include the time fixed for filing objections to the proposed plan that is not less than seven (7) days prior to the hearing.  Unless the Court fixes a different time, the notice of the hearing shall be given not less than twenty-eight (28) days before the confirmation hearing.
         
      2. Objections to confirmation of the plan shall be filed with the Court and served on the debtor, the debtor’s attorney, the Chapter 12 trustee, and parties requesting service not less than seven (7) days prior to the confirmation hearing.
         
      3. If an amended plan is filed before the scheduled confirmation hearing, the debtor shall serve upon the Chapter 12 trustee, all creditors, and parties requesting service, the amended plan with a new notice of hearing for the consideration of the amended chapter 12 plan, in such manner as to ensure that such parties receive the amended plan and notice not less than seven (7) days prior to the confirmation hearing.
         
      4. The debtor shall prepare a proposed Confirmation Order that recites the requirements of the plan and the Court’s findings under 11 U.S.C. § 1225.

      Rule 3017-1 Approval of Disclosure Statement.

      1. Hearing on Disclosure Statement.  Upon the filing of a disclosure statement, the proponent of the plan shall obtain hearing and objection dates from the Court and shall provide notice of those dates in accordance with Fed. R. Bankr. P. 3017.  The hearing date shall be at least thirty-five (35) days following service of the disclosure statement and the objection deadline shall be at least twenty-eight (28) days from service of the disclosure statement.
         
      2. Voting Procedures.  The plan proponent shall timely file a motion to be heard at the disclosure statement hearing for approval of the voting procedures, including the form of ballots, the voting agent and the time and manner of voting.
         
      3. Service of Disclosure Statements.  When a party in interest makes a written request of a plan proponent for service of a copy of the disclosure statement or plan under Fed. R. Bankr. P. 3017(a), service of that disclosure statement or plan shall be at the expense of the plan proponent.

      Rule 3022-1 Closing of Chapter 11 Cases.

      1. Motion.  Upon written motion, a party in interest may seek the entry of a final decree at any time after the confirmed plan has been fully administered provided that all required fees due under 28 U.S.C. § 1930 have been paid.  Such motion shall include a proposed final decree order that (i) orders the closing of the case and (ii) identifies the case name and the case number of the case to be closed under the order.  A separate proposed order closing each jointly administered or consolidated case shall be filed.
         
      2. Service.  A motion for the entry of a final decree shall be served upon the debtor, the trustee, if any, the United States Trustee, all official committees and all creditors who have filed a request for notice under Fed. R. Bankr. P. 2002 and Local Rule 9013-1.
         
      3. Final Report.  The debtor (or trustee, if any) shall file a final report and account in the form prescribed by the United States Trustee on or before fourteen (14) days prior to the hearing on any motion to close the case.

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