CHAPTER 11 - GENERAL
- Authority to Operate Business/Manage Financial Affairs:
- The operation of a business by a debtor-in-possession in cases filed under Chapter 11 shall be subject to the terms and conditions of an order continuing the debtor-in-possession to be entered upon the filing of the petition or entry of the Order for Relief. The debtor-in-possession shall also deposit taxes and file tax returns in compliance with the terms of the Order to File Federal and State Employment Tax Returns and To Deposit State and Federal Taxes.
- Individual Chapter 11 debtors not engaged in business shall be subject to the terms and conditions of the order authorizing individual debtors to manage financial affairs to be entered upon the filing of the petition or entry of the order for relief.
- All Chapter 11 voluntary debtors must comply with the Administrative Order Establishing Initial Procedures in Chapter 11 Cases in effect as of the date of filing the petition, order available online.
- Post-Confirmation Matters:
- Within twenty-one (21) days after the hearing at which the plan is confirmed, the attorney for the proponent of the plan shall submit the Order of Confirmation to the Court. Copies of the proposed order shall be served upon the United States trustee, any party in interest who filed an objection to the confirmation and to any other person designated by the Court. The proponent of the plan shall be responsible for the distribution of copies of: the Order Confirming the Plan and the confirmed plan to all creditors, the United States trustee, and other parties as may be designated by the Court.
- In addition to the report required by Bankruptcy Rule 2015(a), in those instances where the plan requires longer than one hundred twenty (120) days for consummation, the plan proponent shall file a Confirmed Plan Status Report beginning the third month after the effective date of the plan and every three (3) months thereafter. This report shall disclose any distributions made, including the amount of each distribution to creditors as identified in the plan, as well as a description of all other matters which must be consummated in order to close the estate.
- If the plan provides for payments to any class of creditors over a period of time which is longer than one-hundred-eighty (180) days from the date of confirmation, the plan proponent shall execute an instrument evidencing the indebtedness and deliver such instrument to each creditor or other party interest. Such instrument shall provide for payment of the amount due under the plan upon the terms set forth in the plan. Delivery of instruments shall be deemed commencement of distribution under the plan for purposes of closing the estate pursuant to 11 U.S.C. § 1101(c). Such instruments shall be delivered to creditors in each class within thirty (30) days after all objections to claims in that class have been resolved or, if there are no objections to claims in any class, then within sixty (60) days after the entry of an Order of Confirmation.
Advisory Committee Notes
The amended rule includes stylistic changes to refer to the applicable Administrative Order, forms, and the Local Rules Links page that provides links to various Official Forms, Local Forms, and orders.
The amended rule includes both stylistic and substantive changes. The format of subdivisions is changed to maintain a consistent style across all rules. The introductory note is removed as redundant since subdivision (A)(3) requires adherence to the Administrative Order Governing Initial Procedures in a Chapter 11 case. Subdivision (A)(3) is amended to remove the reference to a specific Administrative Order, replacing it with a website link that can be maintained up-to-date more promptly than the local rules. Subdivision (B)(1) is amended to require the plan proponent to serve the confirmation order rather than the Court. Subdivisions (B)(2)(c) and (d) have been relocated to Local Rule 3022-1. Any other changes not specifically discussed are stylistic.