You are here

Local Rules

(a)  Motions to Avoid Judicial Liens Under 11 U.S.C. § 522(f).  A motion to avoid judicial liens under 11 U.S.C. § 522(f) must include the following:

(1)  Identification of the lien creditor.  The caption, title of pleading, or introductory paragraph must clearly identify the affected lien creditor.  It is not sufficient to only attach a copy of a transcript of judgment, without also identifying the affected creditor in the body of the pleadings;

(2)  Specific grounds for relief under 11 U.S.C. § 522(f) (e.g., whether the lien impairs the debtor’s exemption, the purported value of the property, the amount of the various liens filed against the property, whether the debtor claimed a homestead exemption on Schedule C); and

(3)  Evidence that a lien was actually recorded against the homestead (e.g., specific recording information and/or a copy of the transcript of judgment).

(b)  Notice.  The motion must be accompanied by a notice in substantial conformity with L.B.F. 9013-1.1 and must provide at least 14 days from the date of service for the filing of an objection.

(c)   Certificate of Service.  The motion must be accompanied by a certificate of service showing service on the affected lien creditor of both the notice and motion.  Service must comply with the requirements of Fed. R. Bankr. P. 7004 and 9014.

(d)  Proposed Order.  The motion must be accompanied by a proposed order.  The proposed order must contain an adequate description of the property and must not purport to do anything more than declare the lien avoided.  The proposed order should not place an affirmative duty on the lien creditor to file documents to remove the lien from the chain of title.

(a)  Financial Management Course Certification Required for an Individual Debtor in Chapter 7, 13, and 11 cases in which 11 U.S.C. §  1141(d)(3) Applies.  The Court cannot grant a discharge to an individual debtor absent compliance with Fed. R. Bankr. P. 1007(b)(7).  The Court will close fully administered cases without the entry of a discharge if the debtor fails to file the financial management course certification.  The debtor must then file a motion to reopen the case and pay the required reopening fee to secure a discharge.

(b)  Individual Debtor Cases in which 11 U.S.C. § 522(q)(1) Applies.  The Court cannot grant a discharge if there is reasonable cause to believe that 11 U.S.C. § 522(q)(1) may be applicable to the debtor and there is a conviction of a felony as defined in 18 U.S.C. § 3156, or pending any proceeding in which the debtor may be found guilty of a felony of the kind described in 11 U.S.C. § 522(q)(1)(A), or may be liable for a debt of the kind described in 11 U.S.C. § 522(q)(1)(B).  Prior to the entry of the discharge, any party, including the debtor, a creditor, trustee, and United States Trustee, with knowledge that 11 U.S.C. § 522(q)(1) may apply to the debtor, must file a statement justifying the assertion that there is reasonable cause to believe 11 U.S.C. § 522 (q)(1) applies.

(a)  Motion.  A motion for approval of a reaffirmation agreement pursuant to 11 U.S.C. § 524(d) may be filed in accordance with 11 U.S.C. § 524(d) and Fed. R. Bank. P. 4008 by either the debtor or a creditor who is a party to the agreement.

(b)  Form.  A party seeking approval of a reaffirmation agreement must file Official Form 427, Cover Sheet for Reaffirmation Agreement and Director’s Form 2400A, Reaffirmation Documents.  The Court will not consider noncompliant reaffirmation agreements.

(c)   Hearing.

(1)  Certification by Debtor’s Attorney.  If the debtor’s attorney has certified that the reaffirmation agreement will not impose an undue hardship on the debtor and the Court has no other concerns regarding the agreement, no hearing will be conducted and no order will be entered.

(2)  No Certification by Debtor’s Attorney.  If the debtor’s attorney has not certified the reaffirmation agreement for any reason, the Court may set the matter for hearing and may require the debtor’s attorney to participate in the hearing.

When an electronic filer or the Clerk files a document electronically, the official record is the electronic recording of the document as stored by the Court, and the filing party is bound by the document as filed.  Except in the case of documents first filed in paper form, a document filed electronically is deemed filed as of the date and time stated on the Notice of Electronic Filing (“NEF”) from the Court.  Before filing a document with the Court, an electronic filer must verify its legibility.  The Court does not retain filed paper documents.  

(a)  Mandatory Electronic Filing.  Unless the Court orders otherwise, all documents filed by an attorney or trustee must be electronically filed via CM/ECF.  Registration for CM/ECF constitutes consent to receive service and notice electronically via CM/ECF.

(1)  Unless otherwise ordered by the Court, a document will be deemed timely filed if it is electronically filed on or before 11:59 PM, Mountain Time on its due date.

(2)   The Clerk’s Office may deem CM/ECF subject to a technical failure on a given day if the site is unable to accept electronic filings.  In the event of a technical failure, notice thereof will be posted on the Court’s website and documents due that day will be due the next business day.

(3)  The Court may revoke a CM/ECF login and password.

(4)  A CM/ECF login and password is not transferable.  No attorney, law firm, or other person may knowingly permit or cause to permit a CM/ECF password to be utilized by anyone other than an authorized member, employee, or agent of the electronic filer’s law firm.  Each attorney, law firm, or other person that obtains a CM/ECF password is responsible for its security and use. 

(5)  Electronic filers may file all electronic documents with electronic signatures.  Documents that require the signature of the debtor must be maintained by the electronic filer with the original signature(s) in paper form for two years following the expiration of all time periods for appeals after entry of a final order terminating the case or proceeding.  Documents required to be retained by attorneys with actual signatures of the debtor include all petitions, statements, schedules, lists, and amendments thereto.

(b)  Exemption from Mandatory Electronic Filing.  Upon filing a motion demonstrating good cause, an attorney may request an exemption from mandatory electronic filing.  The Clerk or designee may exercise discretion and grant single instance emergency exemptions to attorneys as appropriate.

(1)  Method of Filing for Exempt Attorneys or Unrepresented Parties.  Unless otherwise ordered by the Court, attorneys who have received an exemption under subdivision (b) and unrepresented parties may file documents by any of the following methods:

(A) in person with the Clerk’s Office;

(B) through the approved filing tool available on the Court’s website;

(C) by mail; or

(D) by facsimile.

(2)  A document filed through the Court’s website filing tool or by facsimile is considered filed on the date that it is received by the Court; however, a document received on a Saturday, Sunday, legal holiday or day that the Court is closed, will not be entered on the docket until the next business day.

(c)   Format.  Petitions, statements of financial affairs, schedules, complaints, motions, briefs and other pleadings filed electronically or by email must be in text-searchable Portable Document Format (“PDF”).

(a)  Service.  The motion must be served on the United States Trustee, the trustee previously assigned to the case, the 20 largest unsecured creditors in a chapter 11 case, and any party against whom relief is sought upon reopening of the case.

(b)  Filing Fees.  A motion to reopen a bankruptcy case must be accompanied by payment of any required filing fees.  When such a motion is filed by a trustee to reopen a case due to the discovery of additional assets in the estate, payment of the required filing fee is payable at the time the motion is filed; however, the trustee may file a motion to have the payment of the fee deferred until there are sufficient assets in the estate to pay such fee.

(c)   Filing Complaint to Determine Dischargeability of Debt.  An adversary proceeding to determine the dischargeability of a debt under Fed. R. Bankr. P. 4007(b) or for declaratory relief regarding the effect of a discharge under 11 U.S.C. § 524(a) may be commenced, maintained and concluded whether or not the underlying bankruptcy case has been closed under Fed. R. Bankr. P. 5009 or reopened under Fed. R. Bankr. P. 5010, unless otherwise ordered by the Court.

(a)  Service.  The motion must be served on the United States Trustee, any case trustee, the 20 largest unsecured creditors in a chapter 11 case, those requesting notice, and any party against whom relief is sought.

(b)  Filing Fees.  A motion for withdrawal of a case or proceeding must be accompanied by payment of the required filing fee and be filed with the Clerk together with such other portions of the record as may be necessary for consideration of the motion.

(c)   Objection.  Within 14 days after service of a copy of the motion, a party in interest may file with the Clerk, and serve on the movant and the other parties to the proceeding, an objection to the motion and a designation of any additional portions of the record for the United States District Court’s determination of the motion.

(d)  Reply.  The movant may file a reply within seven days of service of an objection.

(e)  Record.  The Clerk will refer the motion and record to the Clerk of the United States District Court for hearing pursuant to Fed. R. Bankr. P. 5011(a).

The use or operation of any photography, recording, broadcasting, or streaming device is prohibited inside all courtrooms, office space occupied by Court employees, and all rooms used for meetings pursuant to 11 U.S.C. § 341, except as otherwise provided by the Judicial Conference.  This Rule also applies to those participating in a hearing or meeting by telephone, video conference, or other means from outside the courtroom or meeting rooms.  This Rule does not apply to Court employees, designees of the United States Trustee, or any certified court reporter acting pursuant to their official duties.  

(a)  Filing Fees.  A motion to sell free and clear of liens under 11 U.S.C. § 363(f) (“Sale Motion”) must be accompanied by payment of the required filing fee.  However, a trustee may move to defer payment of the fee until there are sufficient assets in the estate to pay the fee. 

(b)  Sales under 11 U.S.C. § 363(b).  Except as otherwise provided in these Rules, the Bankruptcy Code, the Fed. R. Bankr. P., or an order of the Court, all Sale Motions shall attach or include the following:

(1)  A description of the property to be sold.  If the property is real estate, then the legal description must be included;

(2)  A copy of the proposed purchase agreement, or a form of such agreement substantially similar to the one the debtor reasonably believes it will execute in connection with the proposed sale;

(3)  A copy of a proposed form of sale order;

(4)  A request, if necessary, for the appointment of a consumer privacy ombudsman under 11 U.S.C. § 332; and

(c)   Sale to Insider.  If the proposed sale is to an insider, as defined in 11 U.S.C. § 101(13), the Sale Motion must (i) identify the insider, (ii) describe the insider’s relationship to the debtor, and (iii) set forth any measures taken to ensure the fairness of the sale process and the proposed transaction.

(d)  Provisions to be Highlighted.  The Sale Motion must highlight material terms, including but not limited to (i) whether the proposed form of sale order and/or the underlying purchase agreement contains any provision of the type set forth below, (ii) the location of any such provision in the proposed form of order or purchase agreement, and (iii) the justification for the inclusion of such provision:

(A) Agreements with Management.  If a proposed buyer has discussed or entered into any agreements with management or key employees regarding compensation or future employment, the Sale Motion must disclose (i) the material terms of any such agreements, and (ii) what measures have been taken to ensure the fairness of the sale and the proposed transaction in the light of any such agreements.

(B) Releases.  The Sale Motion must highlight any provisions pursuant to which an entity is being released or claims against any entity are being waived or otherwise satisfied.

(C) Private Sale/No Competitive Bidding.  The Sale Motion must disclose whether an auction is contemplated, and highlight any provision in which the debtor has agreed not to solicit competing offers for the property subject to the Sale Motion or to otherwise limit shopping of the property.

(D) Closing and Other Deadlines.  The Sale Motion must highlight any deadlines for the closing of the proposed sale or deadlines that are conditions to closing the proposed transaction.

(E) Good Faith Deposit.  The Sale Motion must highlight whether the proposed purchaser has submitted or will be required to submit a good faith deposit and, if so, the conditions under which such deposit may be forfeited.

(F)  Interim Arrangements with Proposed Buyer.  The Sale Motion must highlight any provision pursuant to which a debtor is entering into any interim agreements or arrangements with the proposed purchaser, such as interim management arrangements (which, if out of the ordinary course, also must be subject to notice and a hearing under 11 U.S.C. § 363(b)) and the terms of such agreements.

(G) Use of Proceeds.  The Sale Motion must highlight any provision pursuant to which a debtor proposes to release sale proceeds on or after the closing without further Court order, or to provide for a definitive allocation of sale proceeds between or among various sellers or collateral.

(H) Tax Exemption.  The Sale Motion must highlight any provision seeking to have the sale declared exempt from taxes under 11 U.S.C. § 1146(a), the type of tax (e.g., recording tax, stamp tax, use tax, capital gains tax) for which the exemption is sought.  It is not sufficient to refer simply to “transfer” taxes and the state or states in which the affected property is located.

(I)    Record Retention.  If the debtor proposes to sell substantially all of its assets, the Sale Motion must highlight whether the debtor will retain, or have reasonable access to, its books and records to enable it to administer its bankruptcy case.

(J)   Sale of Avoidance Actions.  The Sale Motion must highlight any provision pursuant to which the debtor seeks to sell or otherwise limit its rights to pursue avoidance claims under chapter 5 of the Bankruptcy Code.

(K) Requested Findings as to Successor Liability.  The Sale Motion should highlight any provision limiting the proposed purchaser’s successor liability.

(L)  Sale Free and Clear of Unexpired Leases.  The Sale Motion must highlight any provision by which the debtor seeks to sell property free and clear of a possessory leasehold interest, license, or other right.

(M)Credit Bid.  The Sale Motion must highlight any provision by which the debtor seeks to allow, disallow or affect in any manner, credit bidding pursuant to 11 U.S.C. § 363(k).

(N) Relief from Fed. R. Bankr. P. 6004(h).  The Sale Motion must highlight any provision whereby the debtor seeks relief from the fourteen-day stay imposed by Fed. R. Bankr. P. 6004(h).

(e)  Sales Free and Clear of Liens.  In connection with a motion requesting to sell estate property free and clear of liens under 11 U.S.C. § 363(f), the movant must:

(1)  State what subsection(s) of 11 U.S.C. § 363(f) apply and the factual basis for each subsection’s application to the particular case;

(2)  Identify the names and amounts owed to each of the holders of a claim secured against the property to be sold.  If the movant fails to include this information, the Court may deem the motion to be a request for a sale subject to existing liens;

(3)  State whether the liens will attach to the proceeds of sale or be paid at closing; and 

(4)  Serve each known lienholder with a copy of the motion, its attachments, and a notice in the manner set forth in Fed. R. Bankr. P. 7004.  

(f)    Motion to Set Sale Procedures.  If the movant intends to open the sale to a competitive bidding or auction process, a separate motion to approve the bidding procedures should be filed.  If the movant requests a hearing on shortened notice to approve the sale procedures, the request must include a statement of compelling circumstances.  The Sale Procedures Motion should highlight the following provisions in any Sale Procedures Order:

(1)  Provisions Governing Qualification of Bidders.  Any provision governing an entity becoming a qualified bidder, including but not limited to, an entity’s obligation to:

(A) Deliver financial information by a stated deadline to the debtor and other key parties (ordinarily excluding other bidders).

(B) Demonstrate its financial wherewithal to consummate a sale.

(C) Maintain the confidentiality of information obtained from the debtor or other parties or execute a non-disclosure agreement.

(D) Make a non-binding expression of interest or execute a binding agreement.

(2)  Provisions Governing Qualified Bids.  Any provision governing a bid being a qualified bid, including, but not limited to:

(A) Any deadlines for submitting a bid and the ability of a bidder to modify a bid not deemed a qualified bid.

(B) Any requirements regarding the form of a bid, including whether a qualified bid must be (i) marked against the form of a “stalking horse” agreement or a template of the debtor’s preferred sale terms, showing amendments and other modifications (including price and other terms), (ii) for all of the same assets or may be for less than all of the assets proposed to be acquired by an initial, or “stalking horse”, bidder or (iii) remain open for a specified period of time.

(C) Any requirement that a bid include a good faith deposit, the amount of that deposit and under what conditions the good faith deposit is not refundable.

(D) Any other conditions a debtor requires for a bid to be considered a qualified bid or to permit a qualified bidder to bid at an auction.

(3)  Provisions Providing Bid Protections to “Stalking Horse” or Initial Bidder.  Any provisions providing an initial or “stalking horse” bidder a form of bid protection, including, but not limited to the following:

(A) No-Shop or No-Solicitation Provisions.  Any limitations on a debtor’s ability or right to solicit higher or otherwise better bids.

(B) Break-Up/Topping Fees and Expense Reimbursement.  Any agreement to provide or seek an order authorizing break-up or topping fees and/or expense reimbursement, and the terms and conditions under which any such fees or expense reimbursement would be paid.

(C) Bidding Increments.  Any requirement regarding the amount of the initial overbid and any successive bidding increments.

(D) Treatment of Break-Up and Topping Fees and Expense Reimbursement at Auction.  Any requirement that the “stalking horse” bidder receive a “credit” equal to the break-up or topping fee and or expense reimbursement when bidding at the auction and in such case whether the “stalking horse” is deemed to have waived any such fee and expense upon submitting a higher or otherwise better bid than its initial bid at the auction.

(4)  Modification of Bidding and Auction Procedures.  Any provision that would authorize a debtor, without further order of the Court, to modify any procedures regarding bidding or conducting an auction.

(5)  Closing with Alternative Backup Bidders.  Any provision that would authorize the debtor to accept and close on alternative qualified bids received at an auction in the event that the bidder selected as the “successful bidder” at the conclusion of the auction fails to close the transaction within a specified period.

(6)  Provisions Governing the Auction.  Unless otherwise ordered by the Court, the Sale Procedures Order must:

(A) specify the date, time and place at which the auction will be conducted and the method for providing notice to parties of any changes thereto;

(B) provide that each bidder participating at the auction will be required to confirm that it has not engaged in any collusion with respect to the bidding or the sale; and

(C) state that the auction will be conducted openly and all creditors will be permitted to attend.

(a)  Caption.  All documents filed in an adversary proceeding must include a caption in substantial conformity with Official Form 416D, Caption for Use in Adversary Proceeding other than for a Complaint Filed by a Debtor, and list the entire case number, including the initials of the assigned judge (e.g., 17-00000-FML). 

(b)  Requirements for Paper Filed Adversary Proceedings.  The following are required for adversary proceedings filed in paper format:

(1)  cover sheet in substantial conformity with Director’s Procedural Form 1040.

(2)  complaint;

(3)  summons;

(4)  motions for alias summons or pluries summons, if any; and

(5)  emergency motions, if any.

Pages