NOTE: Pursuant to FRBP 9006(a)(1)(C) - If the last day of the computed time period falls on a weekend or federal holiday, the deadline date referenced in the completed Notice must be calculated for the next business day.
Local Rule Number: Rule 2002-1
The Court may require particular parties rather than the Clerk to routinely prepare and/or serve certain notices themselves. For instance, Chapter 7 trustees throughout the District are required to prepare, serve, and file their own notices for the following events: Applications to Employ, Applications for Compensation, Notices of Intent to Sell, Notices of Compromise, Motions to Pay, Notices of Intent to Abandon, Motions to Extend Time to Object to Claims of Exemption, Motions to Extend Time to Object to Discharge, Interim and Supplemental Distributions, and Final Reports. Individual judges may also require other parties to prepare and/or serve notices themselves for certain events or in specific instances. The failure to comply with such directives may result in the underlying pleading, motion, or other paper being stricken or the relief requested therein being denied. See ILCB LR 2002-1.
The following instructions should provide guidance on our new noticing procedures. Comments about legal issues related to pleadings, notices and other documents come from the Judges.
Disclaimer: These pages are intended to serve as an overview of noticing requirements, but it is not a comprehensive list. All persons practicing before the Court are responsible for familiarizing themselves with the Federal Rules of Bankruptcy Procedure, Federal Bankruptcy Code, Administrative Procedures for the Case Management/Electronic Case Filing System, Local Rules for the Central District of Illinois, and Guide to Practice and Procedures for the Central District of Illinois and taking the steps necessary to account for the changes in their own practices.
Applications to Employ
The Objection Date Notice should contain a certificate of service evidencing service on the UST and the debtor’s attorney, if represented, or on the debtor, if pro se.
Prepare an Objection Date Notice with a certificate of service giving not less than 14 days notice to object to the Application to Employ. Docket as follows:
Bankruptcy>Trustee/US Trustee>Notice of Objection Ddl re: Motion to Employ (Ch 7 Trustees)>Browse to upload the appropriate Notice in pdf format>Select the appropriate event to which the Objection Date Notice relates>Select Next, verify the Objections Date calculated in ECF> continue to select Next to complete e-filing the Notice.
Applications for Compensation
If the total compensation - fees and costs - requested for the professional is $1000 or less, the Objection Date Notice may be served only on the UST and the debtor’s attorney, if represented, or the debtor, if pro se. If the total compensation exceeds $1000, the Objection Date Notice must be served on the entire matrix with the exception that if a claims bar date has run, notice does not need to go to unsecured creditors who did not file claims.
Prepare an Objection Date Notice with a certificate of service giving not less than 21 days notice to object to the Application for Compensation which complies with Fed. R. Bankr.P. 2002(c)(2). Docket as follows:
Bankruptcy>Trustee/US Trustee>Notice of Objection Ddl re: Aplc for Compensation (Ch 7 Trustees)>Browse to upload the appropriate Notice in pdf format>Select the appropriate event to which the Objection Date Notice relates>Select Next, verify the Objections Date calculated in ECF> continue to select Next to complete e-filing the Notice.
Sales of Estate Property
The trustees are responsible for their own noticing, the cost of which is a reimbursable expense. The notice must provide for not less than 21 days from mailing for the filing of objections, and the objection date must not be less than 7 days before the proposed sale date. See Fed. R. Bankr. P. 2002(a)(2), 6004(b).
The notice of intent should clearly and precisely describe the property to be sold. Real estate should be described by the type of structure (single family residence, 12-unit apartment building, warehouse, etc.) and common address. Legal descriptions are not required but may be helpful. Personal property sales should include a list of specific items.
The notice of intent should also include the date, time, and place of the sale if by public auction and, at minimum, the name of the buyer and agreed price if by private sale. For online auctions, the place of sale needs to be accurate—provide the website rather than merely mentioning that the sale will be online. Multi-day auctions must be disclosed, including the start and end dates—both need to be accounted for when calculating objection deadlines and notices.
Docket as follows:
Bankruptcy>Trustee/US Trustee> Notice of Intent to Sell (Ch 7 Trustees only) >Browse to upload the appropriate Notice in pdf format>Select the appropriate event to which the Objection Date Notice relates>Select Next, verify the Objections Date calculated in ECF> continue to select Next to complete e-filing the Notice.
Motions to Compromise
Prepare an Objection Date Notice with a certificate of service giving not less than 21 days notice to object to the Motion to Compromise which complies with Fed. R. Bankr.P. 2002(c)(2). The description of the settlement/compromise in the Notice of Compromise must be clear and precise. The Notice should be sufficient to advise all pertinent details of the compromise because most parties receiving the Notice will not have received the Motion. Service of the notice should be made on the entire Matrix with the exception that if a claims bar date has run, service does not need to be made on unsecured creditors who did not file claims. Docket as follows:
Bankruptcy>Trustee/US Trustee> Notice of Compromise (Ch 7 Trustees and Trustee Attys only) >Browse to upload the appropriate Notice in pdf format>Select the appropriate event to which the Objection Date Notice relates>Select Next, verify the Objections Date calculated in ECF> continue to select Next to complete e-filing the Notice.
Motions to Pay
The Code does not specifically provide for Motions to Pay. In many cases, these Motions are used to obtain comfort orders or to supplement other motions or notices. Motion to Pay are frequently filed when a Trustee has not adequately set forth the terms of a proposed compromise or sale in the initial documents filed and then decides that additional authority is needed to complete the compromise or sale. Further, Motions to Pay are sometimes filed to seek authority to make a distribution such as paying debtors their exemption amounts from sale or settlement proceeds even though there is no question but that the exemption must be paid and notice that the exemption is to be paid could have - and should have - been included in the original Notice of Intent to Sell or Motion to Compromise.
Generally, the matters set forth in most Motions to Pay would be more properly addressed by the filing of more detailed Notices of Intent to Sell or Motions to Compromise. In some cases where new details present themselves after initial approval to sell or settle has been obtained, the proper method to address such changes would be to file an Amended Notice of Intent to Sell or Amended Motion to Compromise rather than a Motion to Pay.
To the extent that Motions to Pay continue to be filed, Trustees must notice them and must prepare and serve an objection notice. The amount of notice time and the parties to be served will vary depending on what is proposed to be paid. For example, a Motion to Pay which really is a supplement to a Motion to Compromise should be noticed and served in the same manner as the Motion to Compromise.
File the Motion to Pay with certificate of service as follows:
Bankruptcy>Trustee/US Trustee>Select the Pay event>continue to complete e-filing the Motion to Pay.
Prepare an Objection Date Notice with a certificate of service providing the appropriate amount of time to object to the Motion to Pay as required by the Rules:
Bankruptcy>Trustee/US Trustee>Notice of Objection Ddl re: Motion to Pay (Ch 7 Trustees)>Browse to upload the appropriate Notice in pdf format>Select the appropriate event to which the Objection Date Notice relates>Select Next, insert the appropriate Objections Date in ECF> continue to select Next to complete e-filing the Notice.
Notices of Intent to Abandon
Trustees may abandon property of the estate in a pending case by giving notice of their intent to do so. Chapter 7 trustees are responsible for preparing, serving, and filing the notice with an objection date not less than 14 days after the date the notice will be mailed. Service of the notice should be made on the entire Matrix with the exception that if a claims bar date has run, service does not need to be made on unsecured creditors who did not file claims. See ILCB Guide to Practice & Procedures - Abandonment.
Complete the Notice of Intent to Abandon with the certificate of service giving not less than 14 days notice to object to the Notice. Docket as follows:
Bankruptcy>Trustee/US Trustee>Notice of Intent to Abandon (Ch 7 Trustees only)>Browse to upload the Notice of Intent in pdf format>Select Next, verify the Objections Date calculated in ECF>continue to select Next to complete e-filing the Notice.
Motions to Extend Time to Object to Exemptions
AND
Motions to Extend Time to Object to Discharge
Prepare an Objection Date Notice with a certificate of service giving not less than 14 days notice to object to the Motion to Extend Time to Object to Exemptions. Service of the notice should be made on the debtor and the debtor’s attorney, if the debtor is represented. Docket as follows:
Bankruptcy>Trustee/US Trustee> Notice of Objection Ddl re: Motion to Extend Time (Ch 7 Trustee) > Browse to upload the Notice in pdf format > Select the appropriate event to which the Objection Date Notice relates > Select Next, verify the Objections Date in ECF> continue to select Next to complete e-filing the Notice.
Interim or Supplemental Distribution
Prepare an Objection Date Notice with a certificate of service giving not less than 21 days notice to object to the Motion for Interim or Supplemental Distribution. Service of the notice should be made on the entire Matrix with the exception that if a claims bar date has run, service does not need to be made on unsecured creditors who did not file claims. Docket as follows:
Bankruptcy>Trustee/US Trustee> Notice of Trustee’s Motion for Interim/Supplemental Distribution (Ch 7 Trustee) > Browse to upload the Notice in pdf format > Select the appropriate event to which the Objection Date Notice relates > Select Next, verify the Objections Date in ECF> continue to select Next to complete e-filing the Notice.
Final Reports
Chapter 7 Trustees should now fill in the date on the Notice on the line for “Date Mailed.” The Notice itself says objections are due in 21 days.
The completed Notice should be served on the entire matrix. See Fed. R. Bankr. P. 2002(f)(8). A certificate of service must be filed with the Notice. Docket as follows:
Bankruptcy>Trustee/US Trustee>Notice of Trustee's Final Report, Aplc for Compensation and Ddl to Obj (NFR)(Ch 7 Trustee)>Browse to upload the appropriate Notice in pdf format>Select Next, verify the Objections Date calculated in ECF>continue to select Next to complete e-filing the Notice.
With respect to these noticing procedures, Clerks’ office staff will do only limited review of documents as they are filed. Staff will not review for compliance with the legal requirements for the various documents. Generally, documents will not be sent to chambers for review until objections dates have passed and orders have been submitted.