The trustee is authorized to pay routine, reasonable, and necessary administrative expenses, except for professional fees, of $1,000 or less per expense, up to an aggregate of $2,500. Neither notice to creditors nor a court order is required for such payments, provided the funds used are not a creditor’s cash collateral or otherwise encumbered.
Local Rules
Search local rules
View the PDF version of the Local Rules (Effective 5/1/2021). Download Adobe Reader for free from Adobe's website. Click on the hyperlink to open a text only file of the local rule.
If a trustee in a chapter 7 or 13 case does not have liquid funds available to pay the filing fee for an adversary proceeding, notice of removal, or a motion to convert or reopen a case, the fee may be deferred. The trustee shall pay the fee if and when estate funds become available. The trustee’s signature on a motion to defer the fee shall constitute a sworn statement that there are insufficient funds in the estate to pay the fee. Upon filing the motion, the trustee shall submit an order permitting the fee to be deferred.
On or before the date the schedules, statements and other documents required by BR 1007(b) must be filed, the debtor in possession shall file a notice of compensation. The notice of compensation shall disclose: 1) the post-petition compensation the debtor in possession intends to pay insiders as defined by Code § 101(31) from the petition date until confirmation; 2) the compensation the debtor in possession paid to each of those persons within the two-year period prior to the petition date; and 3) the source of such compensation. Unless the court orders otherwise, the debtor in possession shall serve the notice of compensation on all on all creditors, equity security holders, the United States trustee, and other parties in interest.
(a) Applications for Compensation. Applications for interim or final compensation of professionals shall be accompanied by detailed billing statements itemizing all services provided, the time spent on each service, the charge for the service, the identity and hourly rate of each service provider, all costs for which reimbursement is sought, and all taxes passed on to the debtor or estate. Applications shall list the total amounts of fees, costs, and taxes previously requested, awarded, or paid.
(b) Electronic Reporting to the United States trustee. Unless the court orders otherwise, any professional or other entity seeking fees, compensation, or reimbursement of expenses exceeding $25,000 shall submit time and expense detail electronically to the United States trustee, in a format compatible with the United States trustee’s software. The submissions shall comply with the United States trustee fee guidelines. This requirement is not applicable to final fee applications that exceed $25,000 due only to previously approved interim fee applications.
(c) Payment From the Estate. Professional fees will be allowed and paid from the estate in all chapters only after court approval.
The electronic filing of a proof of claim or a transfer of claim with the clerk in accordance with the clerk’s electronic filing procedures: 1) shall constitute the filing claimant’s approved signature by law; and 2) shall constitute entry of the proof of claim or transfer of claim in the claims register pursuant to BR 5003.
Unless extended or shortened by the court, the time for filing a response to a claim objection shall be 30 days from service of the objection and notice thereof. The notice of the objection shall include the deadline to respond and shall state that if no response is timely filed the court may disallow the claim as requested in the objection without
further notice or a hearing. If a response is timely filed, the party objecting to the claim shall contact the courtroom deputy for the assigned judge to request a hearing. If no response is timely filed, the party objecting to the claim may submit a proposed order, reciting the notice given and when the objection deadline expired.
A Chapter 12 debtor shall, within three business days of filing the plan, contact the courtroom deputy for the assigned judge to request a final confirmation hearing and prepare, serve, and timely file a notice of the hearing.
(a) Mandatory Form Chapter 13 Plan. Chapter 13 debtors must use the form Chapter 13 Plan adopted in this District. Note: The mandatory form Chapter 13 Plan is NM LF 3015-2.
(b) Scheduling the Confirmation Hearing. The chapter 13 plan confirmation hearing will be scheduled by the court.
(c) Extension of Deadline to Object to the Plan – Trustees Only. The chapter 13 trustee and the United States trustee shall have an automatic extension of time to object to confirmation of a plan until 14 days after conclusion of the meeting of creditors.
(d) Motions and Service of Motions in Chapter 13 Plan. Unless the Court for good cause orders otherwise, all preconfirmation motions must be included in the plan and all preconfirmation amended plans and not filed separately. The debtor must comply with the service requirements of BR 7004 and file a certificate of service specifying the method of service with respect to all motions in the plan and preconfirmation amended plans to which BR 9014 applies (e.g., a motion to avoid a judicial lien or to value collateral).
(e) Notice of Objection Deadline and Confirmation Hearing. If both a plan and a confirmation hearing notice are filed with the petition in accordance with the clerk’s case opening instructions, the clerk will include a copy of the plan and notice with the notice of the bankruptcy filing. In all other cases, the debtor shall serve on all creditors and other parties in interest a copy of the plan and the notice of objection deadline and confirmation hearing, and shall file a certificate of service within three days thereafter. Note: NM LF 3015-2(e)A and NM LF 3015-2(e)B were created by the clerk for compliance with this rule.
(f) Requirements for Confirmation. The debtor shall appear in person at any final hearing on plan confirmation, absent exigent circumstances or court approval. The debtor’s failure to attend the final confirmation hearing may be grounds to dismiss the case.
(a) Definitions. “Conduit payments” are post-petition Mortgage payments made by the Debtor to the Trustee for payment to the Mortgagee under a confirmed Chapter 13 plan. “Debtor” includes both debtors in a joint case. “Gap payment” means the first Mortgage payment that come due post-petition. “Mortgage” includes deeds of trust. “Mortgagee” is the holder of a Mortgage, including but not limited to a Mortgage on Debtor’s principal residence. “Trustee” is the Chapter 13 Trustee.
(b) Required Conduit Payments; Gap Payment. Conduit payments are required if Debtor (i) was more than two months delinquent on the petition date; (ii) becomes delinquent before plan confirmation; or (iii) becomes more than two months delinquent after plan confirmation. If Debtor is making Conduit payments and the monthly Mortgage payment increases, Debtor will increase the Conduit payment if and to the extent necessary to ensure plan feasibility. If Debtor’s plan provides for Conduit payments, it must provide for treatment of the Gap payment.
(c) Affidavit Regarding Mortgage Payments. If the Debtor’s plan proposes direct Mortgage payments instead of Conduit payments, Debtor must file with the plan an Affidavit Regarding Mortgage Payments demonstrating Debtor’s eligibility. Note: Form NM LF 3015-3(c) was created for compliance with this rule.
(d) Trustee Duties. On plan confirmation, the Trustee will make Conduit payments based on the Mortgagee’s allowed proof of claim and may make partial payments until the Trustee receives sufficient funds to make full payments. Any notice filed pursuant to BR 3002.1(b) or (c) shall be treated as an amendment to the Mortgagee’s claim. The Trustee is authorized to disburse Conduit payments in the adjusted amount as soon as practicable after the time to object expires without objection, or after resolution of any objection. The plan will be deemed modified to reflect the new payment amount. Any notice pursuant to BR 3002.1(b) filed and served more than 21 before the effective date of the new Mortgage payment will be deemed allowed if no objection is filed within 21 days after service of the notice. Should any new Conduit payment render the plan infeasible, the Trustee may file a motion to amend or modify the plan or to dismiss/convert the case.
(e) Mortgagee Duties. At least 45 days before any name or address change, the Mortgagee shall send the Trustee a notification, using Official Form B2100A/B. Mortgagee shall apply all Mortgage payments received post-petition as provided under the plan. Even if such payments are placed in suspense, forbearance, or similar account, they will be deemed to have been applied to the Mortgage debt. If a confirmed plan is modified to require Conduit payments, Mortgagee must, within 21 days after court approval of the modification, file a supplemental proof of claim stating, as of the approval date, the amount of the post-petition Mortgage payment and the amount of any post-petition delinquency.
(f) Plan Modification That Includes Conduit Payments. If the Debtor seeks to modify a confirmed plan to include Conduit payments, the proposed plan modification must include the name and address of the Mortgagee, the street address of the mortgaged property, when the Trustee is to start making payments, and the amount and proposed treatment of any post-petition delinquency.
On plan confirmation, any prepetition Mortgage arrearage provided for in the plan shall be deemed current, precluding the Mortgagee from charging late payments or other default-related fees and services. Upon the entry of a discharge order, the prepetition Mortgage arrearage paid under a confirmed Chapter 13 plan shall be deemed cured unless the Court orders otherwise or the Mortgagee timely files a BR 3002.l(g) statement to the contrary.
The debtor in a chapter 11 small business case shall, within three business days after filing the plan and disclosure statement, contact the courtroom deputy for the assigned judge to request a confirmation hearing. The debtor shall serve the notice and order prepared by the courtroom deputy within three business days of receipt.
Unless the court orders otherwise, in a chapter 11 case when the plan has been accepted by the requisite majorities and no objection to confirmation has been filed, the plan proponent may establish that the plan meets the applicable requirements of Code § 1129(a) by oral offer of proof, provided that any witness whose testimony is being proffered is present.