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Us bankruptcy rule 4001

us bankruptcy rule 4001

Bankruptcy Rule (a) provides that a request for relief from the automatic stay shall be made by motion. Section (e) of the Bankruptcy Code contemplates that a hearing will commence within thirty (30) days from the date of the request for relief from the automatic stay. Local Bankruptcy Rule governs the time within which responsive. The United States Bankruptcy Court for the District of Maryland is pleased to adopt the following amended Local Bankruptcy Rules. These Rules, which were previously amended RULE OBTAINING CREDIT/REFINANCING RULE REQUIREMENTS FOR CASH COLLATERAL AND FINANCING. Rule specifies the manner of the notice and persons to whom the notice is to be given. Notes of Advisory Committee on Rules— Amendment. This rule is amended to conform to §(c) which gives the United States trustee the right to object to discharge. This amendment is derived from Rule X–(a)(1) and is consistent with Rule us bankruptcy rule 4001

In that event, the court shall proceed expeditiously to hear and determine the motion. An order granting a motion for relief from an automatic stay made in accordance with Rule a 1 is stayed until the expiration of 14 days after the entry of the order, unless the court orders otherwise. A Motion. A motion for authority to use cash collateral shall be made in accordance with Rule and shall be accompanied by a proposed form of order.

B Contents. The motion shall consist of or if the motion is more than five pages in length begin with a concise statement of the relief requested, not to exceed five pages, that lists or summarizes, and sets out the location within the relevant documents of, all material provisions, including:.

C Service. The court may commence a final hearing on a motion for authorization to use cash collateral no earlier than 14 days after service of the motion. If the motion so requests, the court may conduct a preliminary hearing before such day period expires, but the court may authorize the use of only that amount of cash collateral as is necessary to avoid immediate and irreparable harm to the estate pending a final hearing.

Notice of hearing pursuant to this subdivision shall be given to the parties on whom service of the motion is required by paragraph 1 of this subdivision and to such other entities as the court may direct. A motion for authority to obtain credit shall be made in accordance with Rule and shall be accompanied by a copy of the credit agreement and a proposed form of order.

The motion shall consist of or if the motion is more than five pages in length begin with a concise statement of the relief requested, not to exceed five pages, that lists or summarizes, and sets out the location within the relevant documents of, all material provisions of the proposed credit agreement and form of order, including interest rate, maturity, events of default, liens, borrowing limits, and borrowing conditions. If the proposed credit agreement or form of order includes any of the provisions listed below, the concise statement shall also: briefly list or summarize each one; identify its specific location in the proposed agreement and form of order; and identify any such provision that is proposed to remain in effect if interim approval is granted, but final relief is denied, as provided under Rule c 2.

In addition, the motion shall describe the nature and extent of each provision listed below:. The court may commence a final hearing on a motion for authority to obtain credit no earlier than 14 days after service of the motion. If the motion so requests, the court may conduct a hearing before such day period expires, but the court may authorize the obtaining of credit only to the extent necessary to avoid immediate and irreparable harm to the estate pending a final hearing.

This subdivision c does not apply in a chapter 13 case. A motion for approval of any of the following shall be accompanied by a copy of the agreement and a proposed form of order:. The motion shall consist of or if the motion is more than five pages in length begin with a concise statement of the relief requested, not to exceed five pages, that lists or summarizes, and sets out the location within the relevant documents of, all material provisions of the agreement.

In addition, the concise statement shall briefly list or summarize, and identify the specific location of, each provision in the proposed form of order, agreement, or other document of the type listed in subdivision c 1 B. The motion shall also describe the nature and extent of each such provision. Notice of the motion and the time within which objections may be filed and served on the debtor in possession or trustee shall be mailed to the parties on whom service is required by paragraph 1 of this subdivision and to such other entities as the court may direct.

Unless the court fixes a different time, objections may be filed within 14 days of the mailing of the notice. If no objection is filed, the court may enter an order approving or disapproving the agreement without conducting a hearing.

The court may direct that the procedures prescribed in paragraphs 1 , 2 , and 3 of this subdivision shall not apply and the agreement may be approved without further notice if the court determines that a motion made pursuant to subdivisions a , b , or c of this rule was sufficient to afford reasonable notice of the material provisions of the agreement and opportunity for a hearing.

As amended Mar. That section and this rule are applicable in chapters 7, 9, 11 and 13 cases. Subdivision a transforms with respect to the automatic stay what was an adversary proceeding under the former rules to motion practice.

The Code provides automatic stays in several sections, e. This rule specifies that the pleading seeking relief is by means of a motion. Thus the time period in Rule to answer a complaint would not be applicable and shorter periods may be fixed.

Section e requires the preliminary hearing to be concluded within 30 days of it inception, rendering ordinary complaint and answer practice inappropriate. This subdivision also makes clear that a motion under Rule is the proper procedure for a debtor to seek court permission to use cash collateral.

Pursuant to Rule , the motion should be filed in the court in which the case in pending. The court or local rule may specify the persons to be served with the motion for relief from the stay; see Rule Subdivision b imposes a 30 day deadline on the court to resolve the dispute. It is derived from former Bankruptcy Rule d.

The scope of this rule is expanded and the former subdivisions a , b and c are now combined in subdivision a. Subdivision b deals explicitly with the procedures which follow after a motion to use cash collateral is made and served.

Filing shall be pursuant to Rule Service of the motion may be made by any method authorized by Rule and, if service is by mail, service is complete on mailing. Rule e. Under subdivision b 2 , the court may commence a final hearing on the motion within 15 days of service. Rule f does not extend this 15 day period when service of the motion is by mail because the party served is not required to act within the 15 day period.

In addition to service of the motion, notice of the hearing must be given. Rule authorizes the court to direct the form and manner of giving notice that is appropriate to the circumstances.

Any order authorizing the use of cash collateral shall be limited to the amount necessary to protect the estate until a final hearing is held. The objective of subdivision b is to accommodate both the immediate need of the debtor and the interest of the secured creditor in the cash collateral.

The time for holding the final hearing may be enlarged beyond the 15 days prescribed when required by the circumstances. The motion for authority to use cash collateral shall include 1 the amount of cash collateral sought to be used; 2 the name and address of each entity having an interest in the cash collateral; 3 the name and address of the entity in control or having possession of the cash collateral; 4 the facts demonstrating the need to use the cash collateral; and 5 the nature of the protection to be provided those having an interest in the cash collateral.

If a preliminary hearing is requested, the motion shall also include the amount of cash collateral sought to be used pending final hearing and the protection to be provided. Notice of the preliminary and final hearings may be combined. Subdivision c is new. The service, hearing, and notice requirements are similar to those imposed by subdivision b. The motion to obtain credit shall include the amount and type of the credit to be extended, the name and address of the lender, the terms of the agreement, the need to obtain the credit, and the efforts made to obtain credit from other sources.

Subdivision d is new. In the event the 15 day period for filing objections to the approval of an agreement of the parties described in this subdivision is too long, the parties either may move for a reduction of the period under Rule c 1 or proceed under subdivision b or c , if applicable. Rule c 1 requires that cause be shown for the reduction of the period in which to object. If the motion so requests, the court may conduct a preliminary hearing before such day period expires, but the court may authorize the use of only that amount of cash collateral as is necessary to avoid immediate and irreparable harm to the estate pending a final hearing.

Notice of hearing pursuant to this subdivision shall be given to the parties on whom service of the motion is required by paragraph 1 of this subdivision and to such other entities as the court may direct. A motion for authority to obtain credit shall be made in accordance with Rule and shall be accompanied by a copy of the credit agreement and a proposed form of order. The motion shall consist of or if the motion is more than five pages in length begin with a concise statement of the relief requested, not to exceed five pages, that lists or summarizes, and sets out the location within the relevant documents of, all material provisions of the proposed credit agreement and form of order, including interest rate, maturity, events of default, liens, borrowing limits, and borrowing conditions.

If the proposed credit agreement or form of order includes any of the provisions listed below, the concise statement shall also: briefly list or summarize each one; identify its specific location in the proposed agreement and form of order; and identify any such provision that is proposed to remain in effect if interim approval is granted, but final relief is denied, as provided under Rule c 2.

In addition, the motion shall describe the nature and extent of each provision listed below:. The court may commence a final hearing on a motion for authority to obtain credit no earlier than 14 days after service of the motion. If the motion so requests, the court may conduct a hearing before such day period expires, but the court may authorize the obtaining of credit only to the extent necessary to avoid immediate and irreparable harm to the estate pending a final hearing.

This subdivision c does not apply in a chapter 13 case. A motion for approval of any of the following shall be accompanied by a copy of the agreement and a proposed form of order:. The motion shall consist of or if the motion is more than five pages in length begin with a concise statement of the relief requested, not to exceed five pages, that lists or summarizes, and sets out the location within the relevant documents of, all material provisions of the agreement.

In addition, the concise statement shall briefly list or summarize, and identify the specific location of, each provision in the proposed form of order, agreement, or other document of the type listed in subdivision c 1 B. The motion shall also describe the nature and extent of each such provision.

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