North Carolina Bankruptcy Practice Manual, Eighth Edition (2017) xxi NORTH CAROLINA BANKRUPTCY PRACTICE MANUAL Eighth Edition (2017) CHAPTER I INTRODUCTION I. PURPOSE.........................................................................................................................I-5 II. BANKRUPTCY LAW AND PROCEDURE – OVERVIEW ...........................................I-5 III. SOURCE MATERIALS...................................................................................................I-7 IV. ORGANIZATION OF THE BANKRUPTCY CODE......................................................I-8 V. ORGANIZATION OF BANKRUPTCY RULES AND FORMS.....................................I-9 VI. FEDERAL RULES OF CIVIL PROCEDURE..............................................................I-10 VII. FEDERAL RULES OF EVIDENCE.............................................................................I-11 VIII. JURISDICTION OF THE BANKRUPTCY COURTS..................................................I-11 IX. USE OF THE NORTH CAROLINA BANKRUPTCY PRACTICE MANUAL.................I-11 CHAPTER II NORTH CAROLINA BANKRUPTCY COURTS I. COURTS.........................................................................................................................II-5 II. UNITED STATES BANKRUPTCY JUDGES...............................................................II-5 A. Eastern District....................................................................................................II-5 B. Middle District....................................................................................................II-6 C. Western District...................................................................................................II-6 III. UNITED STATES BANKRUPTCY CLERKS..............................................................II-7 A. Eastern District....................................................................................................II-7 B. Middle District....................................................................................................II-7 C. Western District...................................................................................................II-8 IV. UNITED STATES BANKRUPTCY ADMINISTRATORS...........................................II-9 A. Eastern District....................................................................................................II-9 B. Middle District....................................................................................................II-9 C. Western District...................................................................................................II-9 V. CHAPTER 7 PANEL TRUSTEES..................................................................................II-9 A. Eastern District..................................................................................................II-10 B. Middle District..................................................................................................II-11 C. Western District.................................................................................................II-12 VI. CHAPTER 12 STANDING TRUSTEES......................................................................II-13 A. Eastern District..................................................................................................II-13 B. Middle District..................................................................................................II-14 C. Western District.................................................................................................II-14 VII. CHAPTER 13 STANDING TRUSTEES......................................................................II-14 A. Eastern District..................................................................................................II-14 B. Middle District..................................................................................................II-15 C. Western District.................................................................................................II-15 Table of Contents
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North Carolina Bankruptcy Practice Manual, Eighth Edition (2017) xxi
NORTH CAROLINA BANKRUPTCY PRACTICE MANUALEighth Edition (2017)
CHAPTER IINTRODUCTION
I. PURPOSE.........................................................................................................................I-5II. BANKRUPTCY LAW AND PROCEDURE – OVERVIEW...........................................I-5III. SOURCE MATERIALS...................................................................................................I-7IV. ORGANIZATION OF THE BANKRUPTCY CODE......................................................I-8V. ORGANIZATION OF BANKRUPTCY RULES AND FORMS.....................................I-9VI. FEDERAL RULES OF CIVIL PROCEDURE..............................................................I-10VII. FEDERAL RULES OF EVIDENCE.............................................................................I-11VIII. JURISDICTION OF THE BANKRUPTCY COURTS..................................................I-11IX. USE OF THE NORTH CAROLINA BANKRUPTCY PRACTICE MANUAL.................I-11
CHAPTER IINORTH CAROLINA BANKRUPTCY COURTS
I. COURTS.........................................................................................................................II-5II. UNITED STATES BANKRUPTCY JUDGES...............................................................II-5 A. Eastern District....................................................................................................II-5 B. Middle District....................................................................................................II-6 C. Western District...................................................................................................II-6III. UNITED STATES BANKRUPTCY CLERKS..............................................................II-7 A. Eastern District....................................................................................................II-7 B. Middle District....................................................................................................II-7 C. Western District...................................................................................................II-8IV. UNITED STATES BANKRUPTCY ADMINISTRATORS...........................................II-9 A. Eastern District....................................................................................................II-9 B. Middle District....................................................................................................II-9 C. Western District...................................................................................................II-9V. CHAPTER 7 PANEL TRUSTEES..................................................................................II-9 A. Eastern District..................................................................................................II-10 B. Middle District..................................................................................................II-11 C. Western District.................................................................................................II-12VI. CHAPTER 12 STANDING TRUSTEES......................................................................II-13 A. Eastern District..................................................................................................II-13 B. Middle District..................................................................................................II-14 C. Western District.................................................................................................II-14VII. CHAPTER 13 STANDING TRUSTEES......................................................................II-14 A. Eastern District..................................................................................................II-14 B. Middle District..................................................................................................II-15 C. Western District.................................................................................................II-15
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CHAPTER IIIJURISDICTION, VENUE AND REMOVAL
I. INTRODUCTION.........................................................................................................III-7II. PRE-MARATHON PIPELINE JURISDICTION...........................................................III-7III. POST-MARATHON PIPELINE JURISDICTION.........................................................III-7IV. STERN v. MARSHALL....................................................................................................III-8V. CORE AND NON-CORE PROCEEDINGS................................................................III-12 A. Core Proceedings.............................................................................................III-13 B. Non-Core Proceedings.....................................................................................III-14VI. ABSTENTION...........................................................................................................III-16 A. Discretionary Abstention.................................................................................III-16 1. 11 U.S.C. § 305 Abstention...................................................................III-16 2. 28 U.S.C. § 1334(c)(1) Abstention........................................................III-17 B. Mandatory Abstention......................................................................................III-19 C. Withdrawl of Reference....................................................................................III-20VII. VENUE......................................................................................................................III-21 A. Change of Venue...............................................................................................III-22 B. Retention of Case..............................................................................................III-24VIII. REMOVAL................................................................................................................III-24IX. REMAND..................................................................................................................III-27
CHAPTER IVTRUSTEES AND BANKRUPTCY ADMINISTRATORS
I. INTRODUCTION.........................................................................................................IV-5II. THE U.S. TRUSTEE SYSTEM AND BANKRUPTCY ADMINISTRATORS............IV-5 A. Duties of Bankruptcy Administrators.................................................................IV-6 B. Copies of Documents to be Served on Bankruptcy Administrators....................IV-7 1. Eastern District.......................................................................................IV-7 2. Middle District.......................................................................................IV-8 3. Western District......................................................................................IV-8 C. Quarterly Fees ...................................................................................................IV-8III. CHAPTER 7 TRUSTEES..............................................................................................IV-9 A. Election of Trustee by Creditors at First Creditors’ Meeting..............................IV-9 B. Duties of a Trustee............................................................................................IV-10 C. Compensation of the Trustee............................................................................IV-11IV. CHAPTER 11 REORGANIZATION TRUSTEE........................................................IV-11 A. Grounds for Appointment.................................................................................IV-11 B. Duties and Compensation of Chapter 11 Trustees............................................IV-13 C. Appointment of Examiner................................................................................IV-13V. CHAPTER 13 TRUSTEES..........................................................................................IV-14 A. Duties...............................................................................................................IV-14
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B. Compensation of a Chapter 13 Trustee............................................................IV-14VI. CHAPTER 12 TRUSTEE.............................................................................................IV-14 A. Duties and Compensation.................................................................................IV-15VII. POWERS OF TRUSTEES...........................................................................................IV-15VIII. COMSUMER PRIVACY OMBUDSMAN AND PATIENT CARE OMBUDSMAN..IV-16
CHAPTER VCOMMENCEMENT OF CASES/DEBT RELIEF AGENCIES
PART I: COMMENCEMENT OF CASESI. INTRODUCTION.........................................................................................................V-7II. COMMENCING A VOLUNTARY CASE.....................................................................V-7
A. Voluntary Petition and Other Necessary Documents...........................................V-7 1. Statement of Social Security Number....................................................V-12 2. List of Creditors.....................................................................................V-12 3. Schedules, Statement of Financial Affairs, Statement of Current Monthly Income....................................................................................V-13
i. Schedules.................................................................................V-14 a. Summary of Schedules..................................................V-14 b. Schedule A/B.................................................................V-14 (1) Form B 106A/B for Individual Debtors..............V-14 (2) Form B 206A/B for Non-Individual Debtors.....V-16 c. Schedule C.....................................................................V-18 d. Schedule D.....................................................................V-19 e. Schedule E/F..................................................................V-19 f. Schedule G.....................................................................V-21 g. Schedule H.....................................................................V-21 h. Schedule I and Schedule J – Income and Expenditures...V-21 (1) Schedule I..........................................................V-21 (2) Schedule J..........................................................V-22 i. Declarations Regarding the Debtor’s Schedules...........V-24ii. Statement of Financial Affairs...................................................V-24iii. Statement of Current Monthly Income and Means Test Calculation................................................................................V-24iv. Chapter 7 Individual Debtor’s Statement of Intention...............V-26v. Statement of Disclosure of Compensation................................V-27vi. Payment Advices.......................................................................V-27vii. Additional Requirements in a Reorganization Proceeding Under Chapter 11, 12 or 13........................................................V-28 a. Chapter 11......................................................................V-28 b. Chapter 12 Farmer Reorganization...............................V-28 c. Chapter 13 Reorganization............................................V-29
B. Joint Petition for Relief......................................................................................V-29
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III. COMMENCING AN INVOLUNTARY CASE............................................................V-29A. Involuntary Petition for Relief............................................................................V-30B. Issuance of Summons........................................................................................V-31C. Right to Contest Involuntary Petition................................................................V-31
IV. SOURCE OF FORMS...................................................................................................V-31V. FILING FEES................................................................................................................V-32PART II: DEBT RELIEF AGENCIESI. WHO IS A DEBT RELIEF AGENCY?.........................................................................V-33II. RESTRICTIONS ON DEBT RELIEF AGENCIES.......................................................V-34III. LIABILITY OF DEBT RELIEF AGENCIES................................................................V-35IV. REQUIRED DISCLOSURES.......................................................................................V-36V. REQUIREMENTS FOR DEBT RELIEF AGENCIES.................................................V-37
A. Written Contracts...............................................................................................V-37B. Advertising........................................................................................................V-37
CHAPTER VIMEANS TESTING
I. INTRODUCTION.......................................................................................................VI-15II. OVERVIEW OF ABUSE TESTING AND SECTION 707(b).....................................VI-16III. EXEMPTIONS FROM THE MEANS TEST...............................................................VI-16 A. The Means Test Only Applies to Individuals....................................................VI-16 B. Filed Under Chapter 7......................................................................................VI-16 C. Debtors With Primarily Consumer Debts.........................................................VI-16 1. Student Loans.......................................................................................VI-16 2. Mortgages..........................................................................................VI-17 3. Taxes....................................................................................................VI-17 4. Tort Claims..........................................................................................VI-17 D. Military Exemptions........................................................................................VI-17IV. THE MECHANICS OF SECTION 707(b)(2).............................................................VI-18V. CURRENT MONTHLY INCOME: WHAT INCOME IS INCLUDED?.....................VI-19 A. Regular Contributions to Household Expenses (Forms B 122A-1 and B 122C-1, Line 4).............................................................................................VI-20 B. Income from the Operation of a Business, Profession or Farm (Forms B 122A-1 and B 122C-1, Line 5).........................................................VI-21 1. How are Business Expenses Treated for Determining Whether the Debtor is Above or Below Median?.....................................................VI-21 C. Rent and Other Real Property Income (Forms B 122A-1 and B 122C-1, Line 6)..............................................................................................................VI-22 D. Interest, Dividends and Royalties (Forms B 122A-1 and B 122C-1, Line 7)..VI-22 E. Unemployment Compensation (Forms B 122A-1, Line 6 and B 122C-1, Line 8)..............................................................................................................VI-22 F. Pension and Retirement Income (Forms B 122A-1 and B 122C-1, Line 9)......VI-23
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G. Income from Other Sources (Forms B 122A-1 and B 122C-1, Line 10).........VI-23 1. Disability Payments.............................................................................VI-24 2. Adoption Assistance............................................................................VI-24 3. Income Tax Refunds............................................................................VI-24 4. Proceeds from the Sale of an Asset.....................................................VI-24 5. Loans..................................................................................................VI-24VI. CHAPTER 13 CONSIDERATIONS: HAMILTON v. LANNING...............................VI-24 A. What Qualifies as a “Known or Virtually Certain” Change in Income/Expenses?...........................................................................................VI-25 1. Change Found......................................................................................VI-25 2. No Change Found................................................................................VI-26 B. Lanning’s Effect on the Applicable Commitment Period..............................VI-27 C. In Light of Lanning, is Form B 122C-1 or Schedules I and J Determinative of Projected Disposable Monthly Income?.....................................................VI-27 D. Practical Pointers for Reflecting a “Lanning Adjustment” in Your Petition....VI-28 1. Middle District of North Carolina........................................................VI-28 2. Eastern District of North Carolina.......................................................VI-28 3. Western District of North Carolina.......................................................VI-28VII. HOUSEHOLD SIZE....................................................................................................VI-28VIII. EXPENSES................................................................................................................VI-30 A. National Standards...........................................................................................VI-30 1. Food, Clothing and Other Items (Forms B 122A-2 and B 122C-2, Line 6)..................................................................................................VI-30 2. Health Care (Forms B 122A-2 and B 122C-2, Line 7).......................VI-30 B. Local Standards...............................................................................................VI-30 1. Housing and Utilities; Insurance and Operating Expenses (Forms B 122A-2 and B 122C-2, Line 8)........................................................VI-31 2. Housing and Utilities; Mortgage or Rent Expenses (Forms B 122A-2 and B 122C-2, Line 9).........................................................................VI-31 3. Housing and Utilities Adjustment (Forms B 122A-2 and B 122C-2, Line 10)................................................................................................VI-32 4. Transportation: Vehicle Operation Expense (Forms B 122A-2 and B 122C-2, Line 12)..............................................................................VI-32 i. What Qualifies as a Vehicle?....................................................VI-32 ii. May a Single Debtor Claim More Than One Operating Expense?.................................................................................VI-32 iii. The Older Vehicle Deduction...................................................VI-33 5. Transportation: Vehicle Ownership/Lease Expense (Forms B 122A-2 and B 122C-2, Line 13)........................................................................VI-33 6. Transportation: Additional Public Transportation Expense (Forms B 122A-2 and B 122C-2, Lines 14 and 15)...........................................VI-34 C. Other Necessary Expenses...............................................................................VI-34 1. Taxes (Forms B 122A-2 and B 122C-2, Line 16)..................................VI-34
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2. Involuntary Deductions for Employment (Forms B 122A-2 and B 122C-2, Line 17)...............................................................................VI-35 3. Life Insurance (Forms B 122A-2 and B 122C-2, Line 18)..................VI-35 4. Court-Ordered Payments (Forms B 122A-2 and B 122C-2, Line 19)..VI-36 5. Education for Employment or Challenged Children (Forms B 122A-2 and B 122C-2, Line 20)........................................................................VI-36 6. Child Care (Forms B 122A-2 and B 122C-2, Line 20).........................VI-36 7. Additional Health Care Expenses Excluding Insurance Costs (Forms B 122A-2 and B 122C-2, Line 21)........................................................VI-36 8. Optional Telephones and Telephone Services (Forms B 122A-2 and B 122C-2, Line 23)...............................................................................VI-36 D. Health Insurance, Disability Insurance and Health Savings Account Expenses (Forms B 122A-2 and B 122C-2, Line 25).......................................................VI-37 E. Contributions to Care of Household or Family (Forms B 122A-2 and B 122C-2, Line 26)............................................................................................................VI-37 F. Protection Against Family Violence (Forms B 122A-2 and B 122C-2, Line 27)............................................................................................................VI-37 G. Additional Home Energy Costs (Forms B 122A-2 and B 122C-2, Line 28)....VI-37 H. Educational Expenses (Forms B 122A-2 and B 122C-2, Line 29)..................VI-38 I. Additional Food and Clothing Expenses (Forms B 122A-2 and B 122C-2, Line 30)............................................................................................................VI-38 J. Charitable Contributions (Forms B 122A-2 and B 122C-2, Line 31)..............VI-38 K. Deductions for Debt Payment: Future Payments on Secured Claims (Forms B 122A-2 and B 122C-2, Line 33)...................................................................VI-38 1. Is the Debtor Entitled to Deduct the Secured Debt Expense for Collateral that She Intends to Surrender?.............................................VI-39 2. In Chapter 13, May the Debtor Deduct Future Secured Payments on a Second Deed of Trust that Will Be Stripped?......................................VI-39 3. Is the Debtor Limited to the Secured Debt for Two Vehicles, as He or She Is on Line 13?................................................................................VI-39 L. Deductions for Debt Payment: Past-Due Payments for Claims Secured by Primary Residence, Vehicle or Other Property Necessary for Support (Forms B 122A-2 and B 122C-2, Line 34)..................................................................VI-39 M. Payments on Priority Claims (Forms B 122A-2 and B 122C-2, Line 35).......VI-40IX. SPECIAL CIRCUMSTANCES...................................................................................VI-40 A. Special Circumstances Found..........................................................................VI-40 1. Medical Expenses and Disability.........................................................VI-40 2. Unusually High Housing Expenses......................................................VI-40 3. Unusually High Transportation Expenses............................................VI-40 4. Mandatory 401(k) Loan Repayment.....................................................VI-40 5. Non-Dischargeable Student Loans......................................................VI-41 6. Private School Tuition for Child...........................................................VI-41 7. Reduction in Income............................................................................VI-41
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8. Gym Membership................................................................................VI-41 9. Pregnancy of Wife in Joint Case...........................................................VI-41 10. Joint Debtors who Maintained Two Separate Households...................VI-41 11. Unusually High Rent Expense.............................................................VI-41 12. Vehicle Older than Six Years and With More than 75,000 Miles..........VI-41 13. Court-Ordered Child Support Payments.............................................VI-41 14. Zero Dividend Chapter 13 Plan, If Case Converted............................VI-41 B. Special Circumstances Not Found...................................................................VI-42 1. Mandatory 401(k) Loan Repayment....................................................VI-42 2. Voluntary Retirement Contributions....................................................VI-42 3. Anticipated Loss of Child Support Income.........................................VI-42 4. Illness and Above-Average Living Expenses Occasioned by Need for Business Entertaining..........................................................................VI-42 5. Zero Percent Chapter 13 Plan, If Case Converted................................VI-42 6. Voluntary Termination of Employment...............................................VI-42 7. Previous Failed Debt Management Plan.............................................VI-42 8. Unusually High Rent............................................................................VI-42 9. Unusually High Transportation Expenses............................................VI-42 10. Reduction in Income............................................................................VI-43 11. Retirement Loan Repayment...............................................................VI-43 12. Unusually High Food Expense............................................................VI-43 13. Tuition Expenses..................................................................................VI-43 14. Non-Dischargeable Student Loans......................................................VI-43 15. Retirement Benefits Received in Lieu of Social Security Benefits.......VI-44 16. Zero Dividend Chapter 13 Plan, If Case Converted.............................VI-44X. CONVERSION FROM ANOTHER CHAPTER........................................................VI-44XI. PROCEDURAL ASPECTS AND DEADLINES........................................................VI-45
CHAPTER VIIEXEMPTIONS
I. INTRODUCTION.......................................................................................................VII-7II. WHAT EXEMPTIONS APPLY...................................................................................VII-7III. THE FEDERAL EXEMPTIONS UNDER SECTION 522(d).....................................VII-8IV. LIMITATIONS ON EXEMPTIONS..........................................................................VII-10V. EXEMPTIONS UNDER NORTH CAROLINA STATE LAW − N.C. Gen. Stat. § 1C-1601...................................................................................................................VII-12 A. Type of Property and Amount that May be Exempted...................................VII-12 1. Residence and Burial Plots Exemption..............................................VII-12 2. Wildcard Exemption...........................................................................VII-13 3. Motor Vehicle.....................................................................................VII-13 4. Household and Family, Personal Use Goods.......................................VII-13 5. Professional Books and Tools of the Trade..........................................VII-14
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6. Life Insurance.....................................................................................VII-14 7. Professionally Prescribed Health Aids................................................VII-15 8. Compensation from Personal Injury or Death of Person Upon Which the Debtor Depends................................................................VII-15 9. Qualified Individual Retirement Plans...............................................VII-15 10. College Savings Plans .......................................................................VII-16 11. Alimony, Support, Separate Maintenance and Child Support Payments............................................................................................VII-16 B. Definition of “Value” as Used in n.C. Gen. Stat. § 1C-1601.........................VII-16 C. Exceptions to Exemptions Under n.C. Gen. Stat. § 1C-1601.......................VII-17VI. OTHER NORTH CAROLINA EXEMPTIONS........................................................VII-18VII. PROCEDURE TO CLAIM EXEMPTIONS..............................................................VII-18VIII. WAIVER OF EXEMPTIONS.....................................................................................VII-19IX. AVOIDANCE OF LIENS IMPAIRING EXEMPTION.............................................VII-20X. REDEMPTION OF PROPERTY................................................................................VII-21XI. OBJECTIONS TO EXEMPTIONS............................................................................VII-22XII. PRE-BANKRUPTCY EXEMPTION PLANNING...................................................VII-22
CHAPTER VIIITHE AUTOMATIC STAY
I. INTRODUCTION......................................................................................................VIII-7II. MATTERS AFFECTED BY THE STAY....................................................................VIII-7III. MATTERS NOT AFFECTED BY THE STAY...........................................................VIII-8IV. TERMINATION OF THE AUTOMATIC STAY.......................................................VIII-13 A. Procedure for Obtaining Relief from Stay.....................................................VIII-17 1. Grounds for Relief from Stay...........................................................VIII-17 i. Cause.....................................................................................VIII-18 ii. Lack of Equity and Lack of Necessity of Property................VIII-19 iii. Single Asset Realty Cases......................................................VIII-19 iv. Personal Property...................................................................VIII-20 v. Landlord/Tenant Issues..........................................................VIII-20 vi. Small Business Debtor...........................................................VIII-21 2. Ex Parte Relief from Stay.................................................................VIII-22 B. Violations of the Automatic Stay...................................................................VIII-22 C. Stay of an Order Granting Relief from Stay..................................................VIII-23 D. Applicability of Local Bankruptcy Rules of Each District to Motions for Relief from Stay............................................................................................VIII-23 1. Middle District..................................................................................VIII-23 2. Eastern District..................................................................................VIII-24 3. Western District.................................................................................VIII-26V. CO-DEBTOR STAY..................................................................................................VIII-28 A. Termination of Co-Debtor Stay......................................................................VIII-28
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B. Procedure for Obtaining Relief from Co-Debtor Stay...................................VIII-29VI. SPECIAL PROVISIONS FOR UTILITY SERVICE................................................VIII-29
CHAPTER IXMEETING OF CREDITORS
I. INTRODUCTION.........................................................................................................IX-5II. STATUTORY AND RULE REFERENCES..................................................................IX-5III. THE PROCEDURAL CONDUCT OF THE MEETING...............................................IX-6 A. Meeting of Equity Security Holders...................................................................IX-6 B. Election of Chapter 7 Trustee or Creditors’ Committee.....................................IX-6 1. Disputed Election..................................................................................IX-7 2. Adjournment..........................................................................................IX-7 3. No Meeting in Certain Cases.................................................................IX-7IV. PROCEDURE IN NORTH CAROLINA......................................................................IX-7 A. Examination of Debtor.......................................................................................IX-8 B. Creditor Participation.........................................................................................IX-8 C. Who May Appear for the Creditor.....................................................................IX-9V. STRATEGIC CHECKLIST...........................................................................................IX-9
CHAPTER XCLAIMS
I. INTRODUCTION..........................................................................................................X-7II. FILING PROOFS OF CLAIM OR INTEREST..............................................................X-7 A. Filing Claims in a Chapter 7 Case.........................................................................X-8 B. Filing Claims in a Chapter 11 Case.......................................................................X-8 C. Filing Claims in a Chapter 12 Case.......................................................................X-9 D. Filing Claims in a Chapter 13 Case.......................................................................X-9III. ALLOWANCE OF CLAIMS OR INTERESTS............................................................X-10IV. ALLOWANCE OF COSTS OF ADMINISTRATION..................................................X-11V. DETERMINATION OF CLAIMS................................................................................X-12 A. Determination of Secured Status.......................................................................X-12 1. Valuation of Collateral..........................................................................X-12 2. Procedure to Determine Value...............................................................X-13 3. Valuation Standards...............................................................................X-13 4. Preservation of Collateral Surcharge.....................................................X-14 5. Section 1325 “910-Day Claims”............................................................X-14 6. Stripping Valueless Liens......................................................................X-14 B. Determination of Priority Status.......................................................................X-15 1. Order of Priority....................................................................................X-15 2. Super Priorities......................................................................................X-17 C. Determination of Tax Liability..........................................................................X-17
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VI. SUBORDINATION......................................................................................................X-18VII. SUBROGATION.........................................................................................................X-19VIII. TRUSTEE’S DUTY TO EXAMINE CLAIMS............................................................X-20IX. OBJECTIONS TO CLAIMS.........................................................................................X-20 A. Grounds for Objection.......................................................................................X-20 B. Procedure for Objection.....................................................................................X-21
CHAPTER XIDISCHARGE, NON-DISCHARGEABLE DEBTS AND REAFFIRMATION
I. INTRODUCTION.......................................................................................................XI-7II. DISCHARGE IN A CHAPTER 7 CASE.......................................................................XI-7 A. Denial of Discharge...........................................................................................XI-7 1. Grounds for Denial of Discharge...........................................................XI-7 i. No Discharge for Organizations or Business Entities.................XI-8 ii. Fraudulent Transfers or Concealment of Property.....................XI-8 iii. Inadequate or Missing Financial Records...................................XI-8 iv. Certain Bankruptcy Offenses.....................................................XI-8 v. Failure to Explain Loss of Assets................................................XI-8 vi. Refusal to Cooperate..................................................................XI-9 vii. Prohibited Acts in Connection with an Insider’s Bankruptcy......XI-9 viii. Prior Discharge Within Eight Years.............................................XI-9 ix. Prior Chapter 12 or Chapter 13 Discharge.................................XI-9 x. Waiver........................................................................................XI-9 xi. Failure to Complete Personal Financial Management Course...XI-9 2. Procedure for Objecting to Discharge ................................................XI-10III. NON-DISCHARGEABLE DEBTS............................................................................XI-10 A. Grounds for Objecting to Dischargeability......................................................XI-11 1. Certain Taxes and Customs Duties - § 523(a)(1)..................................XI-11 2. Debts Incurred Through Fraud - § 523(a)(2).......................................XI-11 3. Unlisted and Unscheduled Claims - § 523(a)(3).................................XI-11 4. Fraud of a Fiduciary; Embezzlement or Larceny - § 523(a)(4)............XI-12 5. Domestic Support Obligation - § 523(a)(5).........................................XI-12 6. Willful and Malicious Injury - § 523(a)(6)..........................................XI-12 7. Fines, Penalties and Forfeitures - § 523(a)(7).....................................XI-13 8. Certain Educational Loans - § 523(a)(8).............................................XI-13 9. Debts Resulting from Driving While Intoxicated - § 523(a)(9)............XI-13 10. Debts from a Previous Bankruptcy in which Discharge was Denied - § 523(a)(10)..........................................................................................XI-14 11. Debts Arising from Fraud or Defalcation While Acting as Fiduciary to Depository Institution or Insured Credit Union - § 523(a)(11).........XI-14 12. Malicious or Reckless Failure to Fulfill Commitment to Federal Depository Institutions Regulatory Agency to Maintain Capital of Insured Depository Institution - § 523(a)(12)......................................XI-14
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13. Restitution Under Title 18 - § 523(a)(13).............................................XI-14 14. Debt Incurred to Pay a Non-Dischargeable Federal Tax - § 523(a)(14)..........................................................................................XI-14 15. Tax to Governmental Unit Other Than the United States - § 523(a)(14A).......................................................................................XI-14 16. Debt to Pay Federal Election Law Penalty - § 523(a)(14B)...................XI-15 17. Debts in the Course of a Divorce or Separation - § 523(a)(15)............XI-15 18. Post-Petition Homeowners’ Assessments - § 523(a)(16)......................XI-15 19. Court Fees - § 523(a)(17)....................................................................XI-15 20. Support Payments Under the Social Security Act - § 523(a)(18)..........XI-15 21. Securities Law Violations - § 523(a)(19)...............................................XI-15 B. Procedure for Objecting to Dischargeability.....................................................XI-16 C. Revocation of Discharge.................................................................................XI-16IV. DISCHARGE IN A CHAPTER 11 CASE...................................................................XI-17 A. Exceptions to Chapter 11 Discharge................................................................XI-17 1. Individual Debtors...............................................................................XI-18 2. Business Debtors.................................................................................XI-18 i. Liquidating Plans.....................................................................XI-18 ii. Claims under the False Claims Act...........................................XI-18 iii. Fraudulent Return or Willful Attempt to Evade........................XI-18 B. Procedure for Objecting to Discharge or Dischargeability..............................XI-18 C. Scope of the Chapter 11 Discharge...................................................................XI-19 D. Revocation of Chapter 11 Plan Confirmation and Discharge..........................XI-19V. DISCHARGE IN A CHAPTER 12 CASE....................................................................XI-19 A. Exceptions to Chapter 12 Discharge................................................................XI-20 B. Procedure for Objecting to Dischargeability of Debts......................................XI-20 C. “Hardship” Discharge......................................................................................XI-20 D. Discharge Hearing...........................................................................................XI-21VI. DISCHARGE IN A CHAPTER 13 CASE...................................................................XI-21 A. Exceptions to Discharge Under Section 1328(a)..............................................XI-21 B. “Hardship” Discharge......................................................................................XI-22 C. Discharge Hearing and Procedures.................................................................XI-23VII. EFFECT OF DISCHARGE..........................................................................................XI-23VIII. REAFFIRMATION OF DEBT....................................................................................XI-24 A. General Requirements of Reaffirmation Agreements......................................XI-24 B. Ride-Through Post BAPCPA..........................................................................XI-26 C. Attorney Duties on Reaffirmation Agreements................................................XI-27
CHAPTER XIIAVOIDING POWERS OF THE DEBTOR AND TRUSTEE
I. INTRODUCTION.......................................................................................................XII-9II. TRUSTEE’S AVOIDING POWERS...........................................................................XII-9
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A. “Strong Arm” Powers of the Trustee - § 544(a)................................................XII-9 1. Judicial Lien Creditor.........................................................................XII-10 2. Unsatisfied Execution Creditor...........................................................XII-11 3. Bona Fide Purchaser of Real Estate...................................................XII-11 B. Successor to Actual Creditors - § 544(b).........................................................XII-12 C. Statutory Lien Creditor - § 545.......................................................................XII-13 D. Avoidance of Certain Liens for Fines or Punitive Damages - § 724...............XII-14 E. Preferences - § 547..........................................................................................XII-14 1. Frequently Litigated Issues Concerning Elements of a Preferential Transfer.............................................................................................XII-15 i. Transfer...................................................................................XII-15 ii. To or For the Benefit of a Creditor..........................................XII-15 iii. Made while the Debtor was Insolvent....................................XII-16 2. Statutory Defenses to the Preference Action.......................................XII-17 i. Contemporaneous Exchange for New Value...........................XII-17 ii. Ordinary Course of Business Transfers..................................XII-17 iii. Security Interest for Enabling Loans.......................................XII-18 iv. Subsequent New Value............................................................XII-18 v. Receivables and Floating Inventory Loans.............................XII-19 vi. Statutory Liens........................................................................XII-20 vii. Alimony and Support..............................................................XII-20 viii. Aggregate Transfer by Consumer Debtor................................XII-20 ix. Aggregate Transfer by Non-Consumer Debtor of Less than $5,000.....................................................................................XII-20 x. Venue for Certain Cases Seeking Avoidance of Less than $10,000...................................................................................XII-20 3. Other Common Defenses to a Preference Action..............................XII-21 i. Earmarking/Constructive Trust..............................................XII-21 ii. Mere Conduit..........................................................................XII-22 iii. Transfer did not Enable Creditor to “Receive More”.............XII-23 4. Setoffs as Preferences.........................................................................XII-23 5. Procedure to Avoid a Preference.........................................................XII-24 6. Statute of Limitations.........................................................................XII-25 F. Fraudulent Transfers - § 548...........................................................................XII-25 1. The Elements of the Case...................................................................XII-25 2. Transfer of an Interest of Debtor in Property......................................XII-26 3. Defining Transfer................................................................................XII-26 4. Actual Fraudulent Intent.....................................................................XII-27 5. Constructive Fraudulent Intent...........................................................XII-28 i. Reasonably Equivalent Value..................................................XII-28 ii. Insolvency..............................................................................XII-29 iii. Unreasonably Small Capital....................................................XII-29 iv. Intent to Incur Debts Beyond Ability to Pay...........................XII-30
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v. Transfers to Insiders Pursuant to Employment Agreement.....XII-30 6. Partnership Debtor..............................................................................XII-30 7. State Law............................................................................................XII-30 8. Discovery...........................................................................................XII-31 9. Venue..................................................................................................XII-31 10. Fraudulent Transfer Involving Self-Settled Trusts.............................XII-32 G. Post-Petition Transfers - § 549........................................................................XII-32 1. Involuntary Case Gap Transferees for Value......................................XII-32 2. Bona Fide Purchasers of Real Estate.................................................XII-33 3. Good Faith Payor of Debt Owed to Debtor........................................XII-33 4. Limitations Under § 549(d).................................................................XII-33 H. Limitation on the Trustee’s Avoiding Powers - § 546......................................XII-33III. DEBTOR’S AVOIDING POWERS - § 522...............................................................XII-34IV. LIABILITY OF TRANSFEREE OF AVOIDED TRANSFER - § 550......................XII-35V. AUTOMATIC PRESERVATION OF AVOIDED TRANSFERS AND LIENS - § 551...........................................................................................................................XII-36VI. HEIGHTENED PLEADING REQUIREMENTS IN PREFERENCE CASES.........XII-36
CHAPTER XIII LIQUIDATION AND SALE OF ENCUMBERED PROPERTY
I. INTRODUCTION......................................................................................................XIII-5II. ABANDONMENT OF PROPERTY..........................................................................XIII-5 A. Initiative of Trustee.........................................................................................XIII-6 B. Motion by Any Party in Interest.......................................................................XIII-6 C. Failure by Trustee to Administer Property Before Close of Case....................XIII-6III. LIQUIDATION BY THE TRUSTEE.........................................................................XIII-6
A. Provisions for Selling Property of the Estate...................................................XIII-7B. Notice of Proposed Sale..................................................................................XIII-7C. Sale of Jointly-Owned Property......................................................................XIII-7
D. Costs and Expenses Incurred by a Chapter 7 Trustee in Liquidation of Property............................................................................................................XIII-8IV. SALE OF PROPERTY THROUGH CHAPTER 11, 12 AND 13 PLANS..................XIII-8 A. Chapter 11 Plan...............................................................................................XIII-8 B. Chapter 12 Plan...............................................................................................XIII-9 C. Chapter 13 Plan.............................................................................................XIII-10
CHAPTER XIV PROTECTING THE CREDITOR’S INTEREST
I. INTRODUCTION......................................................................................................XIV-7II. NOTICE OF APPEARANCE.....................................................................................XIV-7III. PROOF OF CLAIM....................................................................................................XIV-8
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A. Filing a Claim..................................................................................................XIV-8 B. Allowance of Claims and Determination of Secured Status...........................XIV-9IV. NOTICE TO CREDITORS.......................................................................................XIV-10V. VALUATION............................................................................................................XIV-10 A. Standards of Valuation...................................................................................XIV-10 B. Section 506(c) Surcharge...............................................................................XIV-11 C. Section 522(f) Lien Avoidance......................................................................XIV-11 D. Cramdown of Secured Claims.......................................................................XIV-11VI. SECTION 341 FIRST CREDITORS’ MEETING.....................................................XIV-12VII. AUTOMATIC STAY.................................................................................................XIV-12 A. Exceptions to the Automatic Stay...................................................................XIV-13 B. Abusive Filings and the Automatic Stay........................................................XIV-13 C. Motion for Relief from Stay..........................................................................XIV-14 1. Procedure to Obtain Relief from Stay................................................XIV-14 2. Tactical Considerations......................................................................XIV-15 D. Violations of the Automatic Stay...................................................................XIV-15VIII. MEANS FOR PROTECTING THE RIGHTS OF THE CREDITOR.......................XIV-16 A. Motion to Dismiss..........................................................................................XIV-16 1. Chapter 7 Case...................................................................................XIV-16 2. Chapter 11 Case..................................................................................XIV-16 3. Chapter 12 Case.................................................................................XIV-16 4. Chapter 13 Case.................................................................................XIV-17 5. Tactical Considerations......................................................................XIV-17 B. Conversion to Another Chapter.....................................................................XIV-18 1. Chapter 7 Case...................................................................................XIV-18 2. Chapter 11 Case.................................................................................XIV-18 3. Chapter 12 Case.................................................................................XIV-18 4. Chapter 13 Case.................................................................................XIV-19 5. Tactical Considerations......................................................................XIV-19 C. Objections to Discharge.................................................................................XIV-19IX. REPRESENTING THE CREDITOR IN A CHAPTER 7 CASE..............................XIV-19 A. Section 554 – Abandonment...........................................................................XIV-20 B. Section 524 – Reaffirmation...........................................................................XIV-20 C. Section 722 – Redemption.............................................................................XIV-20 D. Section 707 – Dismissal.................................................................................XIV-21 E. Section 727 – Objection to Discharge...........................................................XIV-21 F. Exemptions...................................................................................................XIV-21X. REPRESENTING THE CREDITOR IN A CHAPTER 11 CASE............................XIV-21 A. Use of Cash Collateral...................................................................................XIV-22 B. Use, Sale or Lease of Property Under Section 363.......................................XIV-23 C. Post-Petition Lending....................................................................................XIV-23 D. Appointment of a Trustee or Examiner..........................................................XIV-24 E. Objection to Plan of Reorganization..............................................................XIV-24
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XI. REPRESENTING THE CREDITOR IN A CHAPTER 12 CASE.............................XIV-25 A. Protecting the Claim......................................................................................XIV-25 1. Relief From the Automatic Stay........................................................XIV-25 2. Use of Cash Collateral......................................................................XIV-25 3. Use, Sale and Lease of Property.......................................................XIV-25 4. Post-Petition Lending........................................................................XIV-26 5. Revocation of Confirmation or Discharge.........................................XIV-26 B. The Plan of Reorganization...........................................................................XIV-26XII. REPRESENTING THE CREDITOR IN A CHAPTER 13 CASE.............................XIV-27 A. Co-Debtor Stay..............................................................................................XIV-28 B. Release of Property........................................................................................XIV-28 C. Surrendering Real Property...........................................................................XIV-28 D. Other Remedies Available in Chapter 13.......................................................XIV-29 E. The Chapter 13 Plan.......................................................................................XIV-29 1. Objection to Confirmation.................................................................XIV-30 2. Curing Default...................................................................................XIV-30 F. 3002.1 Notice Relating to Claims Secured by Security Interest in the Debtor’s Principal Residence........................................................................XIV-31XIII. CONCLUSION.........................................................................................................XIV-32
CHAPTER XVCHAPTER 7 LIQUIDATION
I. INTRODUCTION........................................................................................................XV-7II. DISTINCTION BETWEEN CHAPTER 7 AND OTHER CHAPTERS UNDER THE BANKRUPTCY CODE......................................................................................XV-7III. VOLUNTARY CHAPTER 7 BANKRUPTCY CASES..............................................XV-8 A. Debtor Eligibility..............................................................................................XV-8 B. Filing the Case..................................................................................................XV-9 1. Pre-Petition Disclosures.......................................................................XV-9 2. The Petition.........................................................................................XV-10 3. Statement of Financial Affairs............................................................XV-11 4. Schedules.........................................................................................XV-11 i. Schedule A/B..........................................................................XV-12 ii. Schedule C..............................................................................XV-12 iii. Schedule D..............................................................................XV-13 iv. Schedule E/F...........................................................................XV-13 v. Schedule G..............................................................................XV-14 vi. Schedule H..............................................................................XV-14 vii. Schedules I and J.....................................................................XV-15 5. Certificate of Credit Counseling..........................................................XV-15 6. Statement of Social Security Number................................................XV-15 7. Statement of Current Monthly Income................................................XV-15
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8. Rule 2016 Statement...........................................................................XV-15 9. Other Necessary Documents...............................................................XV-16 C. Procedure After Filing the Case......................................................................XV-16IV. INVOLUNTARY CHAPTER 7 BANKRUPTCY CASES.........................................XV-17 A. Debtor Eligibility............................................................................................XV-18 B. Filing the Involuntary Case............................................................................XV-18 1. The Petition.........................................................................................XV-19 2. The Summons.....................................................................................XV-19 C. Appointment of Trustee Before Order for Relief............................................XV-19 D. Procedure After Filing an Involuntary Petition..............................................XV-20V. CONVERSIONS OR DISMISSALS..........................................................................XV-20
CHAPTER XVICHAPTER 13 – ADJUSTMENT OF DEBTS
OF AN INDIVIDUAL WITH REGULAR INCOME
I. INTRODUCTION....................................................................................................XVI-11II. ELIGIBILITY..........................................................................................................XVI-13 A. Individual......................................................................................................XVI-13 B. Regular Income.............................................................................................XVI-14 C. Debt Limits...................................................................................................XVI-14 D. Effect of Prior Bankruptcy............................................................................XVI-15 E. Pre-Bankruptcy Credit Counseling...............................................................XVI-15III. FILING THE CASE..................................................................................................XVI-16 A. The Petition for Relief....................................................................................XVI-16 B. The Filing Fee ..............................................................................................XVI-16 C. Schedules, Statements and Lists....................................................................XVI-17 1. List of Creditors and Mailing Matrix................................................XVI-17 2. Summary of Schedules......................................................................XVI-17 3. Statement of Financial Affairs...........................................................XVI-18 D. Attorneys’ Fees.............................................................................................XVI-18 E. Additional Required Documents...................................................................XVI-18 1. Debtor’s Statement of Social Security Number (Form B 201).........XVI-19 2. Debtor’s Certificate of Credit Counseling and Debt Repayment Plan (or § 109(h)(3) Certification or § 109(h)(4) Request)......................XVI-19 3. Notice to Individual Debtors with Primarily Consumer Debts..........XVI-19 4. Statement of Current Monthly Income and Disposable Income Calculation (Form B 122C-1 and B 122C-2; Official Forms 122C-1 and 122C-2).......................................................................................XVI-19 5. Chapter 13 Plan.................................................................................XVI-19 6. Payment Advices...............................................................................XVI-19 i. Eastern District......................................................................XVI-20 ii. Middle District......................................................................XVI-20
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iii. Western District.....................................................................XVI-20 F. Amendments to Petition, Schedule or Statement.........................................XVI-20IV. PROPERTY OF THE ESTATE..................................................................................XVI-21V. POWERS AND DUTIES OF THE DEBTOR...........................................................XVI-22 A. Duties..........................................................................................................XVI-22
B. Powers ...........................................................................................................XVI-23VI. POWERS AND DUTIES OF THE TRUSTEE..........................................................XVI-24VII. THE CHAPTER 13 PLAN........................................................................................XVI-25 A. Mandatory Provisions of the Plan.................................................................XVI-26 B. Discretionary Provisions of the Plan.............................................................XVI-26 C. Prohibited Provisions....................................................................................XVI-27 D. Length of Plan ..............................................................................................XVI-27 E. Classification of Claims................................................................................XVI-28 F. Confirmation of the Plan...............................................................................XVI-28 1. Confirmation Requirements..............................................................XVI-28 i. Compliance with Applicable Provisions of the Bankruptcy Code......................................................................................XVI-28 ii. Payment of All Fees..............................................................XVI-28 iii. Plan Proposed in Good Faith.................................................XVI-29 iv. Required Treatment of Unsecured Claims............................XVI-29 v. Required Treatment of Secured Claims................................XVI-29 vi. Feasibility: Ability of Debtor to Comply with Plan..............XVI-29 vii. Debtor’s Petition was Filed in Good Faith...........................XVI-29 viii. Payment of Domestic Support Obligations...........................XVI-30 ix. Debtor Must Have Filed all Applicable Federal, State and Local Tax Returns...........................................................XVI-30 2. Objection to Confirmation................................................................XVI-30 3. Confirmation Provisions Binding.....................................................XVI-31VIII. CLAIMS...................................................................................................................XVI-31IX. STAYS UNDER CHAPTER 13................................................................................XVI-32 A. Automatic Stay..............................................................................................XVI-32 1. Limitations on the Automatic Stay for Repeat Filers.........................XVI-32 2. Limitations on the Automatic Stay as to Real Property....................XVI-33 B. Co-Debtor Stay.............................................................................................XVI-34X. REAL PROPERTY...................................................................................................XVI-34 A. Mortgage Payments in Chapter 13................................................................XVI-35 1. Conduit Mortgage Payments.............................................................XVI-35 B. Curing Default..............................................................................................XVI-35XI. WAGE ORDERS......................................................................................................XVI-36XII. MODIFICATION OF PLANS..................................................................................XVI-37 A. Pre-Confirmation..........................................................................................XVI-37 B. Post-Confirmation........................................................................................XVI-37 1. Post-Confirmation Modification for Above-Median-Income Debtors..........................................................................................XVI-37
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XIII. DISCHARGE..........................................................................................................XVI-38XIV. CONVERSION OR DISMISSAL............................................................................XVI-39XV. DEBTOR ENGAGED IN BUSINESS.....................................................................XVI-40
CHAPTER XVIICHAPTER 12 – ADJUSTMENT OF DEBTS OF A FAMILY FARMER
OR FISHERMAN WITH REGULAR INCOME
I. INTRODUCTION....................................................................................................XVII-9II. FILING A CHAPTER 12 CASE................................................................................XVII-9 A. Eligibility for Relief.......................................................................................XVII-9 1. Family Farmer..................................................................................XVII-10 i. Individuals...........................................................................XVII-10 ii. Corporations or Partnerships................................................XVII-10 2. Family Fisherman.............................................................................XVII-11 i. Individuals...........................................................................XVII-11 ii. Corporations or Partnerships................................................XVII-11 3. Voluntary Petitions Only..................................................................XVII-13 4. The Petition for Relief and Other Necessary Documents.................XVII-13III. POST-PETITION OPERATIONS...........................................................................XVII-14 A. Appointment of Trustee...............................................................................XVII-15 1. Duties of Trustee..............................................................................XVII-15 2. Compensation of Trustee.................................................................XVII-15 B. The Rights and Powers of the Debtor...........................................................XVII-16 C. Monthly Reports..........................................................................................XVII-16 D. Filing of Claims...........................................................................................XVII-17 E. Status Conferences.......................................................................................XVII-17IV. CHAPTER 12 AUTOMATIC STAY........................................................................XVII-17 A. Relief from Stay...........................................................................................XVII-17 B. Adequate Protection.....................................................................................XVII-18 1. Reasonable, Customary Rent...........................................................XVII-19 2. Elimination of Lost Opportunity Costs............................................XVII-19V. SALE OF PROPERTY IN A CHAPTER 12 CASE................................................XVII-19VI. USE OF CASH COLLATERAL..............................................................................XVII-20VII. THE PLAN OF REORGANIZATION.....................................................................XVII-21 A. Provisions of the Plan..................................................................................XVII-21 B. Treatment of Post-Petition Crops or Crop Proceeds...................................XVII-23 C. Other Provisions of the Plan.......................................................................XVII-23 D. Confirmation of the Plan..............................................................................XVII-23 1. Confirmation Standards...................................................................XVII-24 2. Secured Claims................................................................................XVII-25 3. Good Faith and Feasability..............................................................XVII-27 E. Post-Confirmation......................................................................................XVII-27
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1. Wage Deduction...............................................................................XVII-27 2. Effect of Confirmation.....................................................................XVII-27 3. Modification of Plan After Confirmation.........................................XVII-27 4. Revocation of Confirmation............................................................XVII-28VIII. DISCHARGE..........................................................................................................XVII-28IX. CONVERSION.......................................................................................................XVII-29X. DISMISSAL............................................................................................................XVII-30
CHAPTER XVIIICHAPTER 11 REORGANIZATION
I. INTRODUCTION.................................................................................................XVIII-13 A. Advantages of Alternative Chapters............................................................XVIII-13 B. Disadvantages of Alternative Chapters.......................................................XVIII-14II. ELIGIBILITY, FEASIBILITY AND PRE-FILING CONSIDERATIONS.............XVIII-14 A. Eligibility..................................................................................................XVIII-14 B. Feasibility...................................................................................................XVIII-15 C. Pre-Filing Considerations...........................................................................XVIII-16III. FILING THE CASE...............................................................................................XVIII-17 A. Voluntary Petition.......................................................................................XVIII-17 1. Application to Employ Attorney for Debtor in Possession..............XVIII-18 2. Application to Approve Employment of Accountants....................XVIII-18 3. Application for Authority to Employ an Officer.............................XVIII-18 4. Deposit Accounts...........................................................................XVIII-18 B. Involuntary Petition....................................................................................XVIII-19IV. POST-PETITION PROCEDURES IN CHAPTER 11...........................................XVIII-19 A. Post-Petition Operation of the Business.....................................................XVIII-20 B. Appointment of a Trustee or an Examiner...................................................XVIII-20V. AUTOMATIC STAY..............................................................................................XVIII-22 A. Procedure for Obtaining Relief from Stay.................................................XVIII-22 B. Grounds for Obtaining Relief from Stay....................................................XVIII-22 C. Violations of the Automatic Stay................................................................XVIII-23 D. Setoff..........................................................................................................XVIII-24VI. USE, SALE OR LEASE OF PROPERTY..............................................................XVIII-24 A. Use of Cash Collateral................................................................................XVIII-25 B. Sale of Property Free and Clear of Liens....................................................XVIII-27 C. Adequate Protection...................................................................................XVIII-27VII. OBTAINING CREDIT...........................................................................................XVIII-27VIII. SUPER PRIORITY................................................................................................XVIII-29IX. UTILITY SERVICE..............................................................................................XVIII-29X. CREDITORS’ COMMITTEES.............................................................................XVIII-30XI. DISCLOSURE STATEMENT...............................................................................XVIII-31XII. FILING A PLAN OF REORGANIZATION..........................................................XVIII-32
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A. Contents of a Plan of Reorganization..........................................................XVIII-33 B. Acceptance of a Plan of Reoganization.......................................................XVIII-34 C. Modification of a Plan of Reorganization....................................................XVIII-35 D. Confirmation of a Plan of Reorganization...................................................XVIII-36 E. Cramdown..................................................................................................XVIII-40 F. Effect of Confirmation................................................................................XVIII-42 G. Revocation of Confirmation.......................................................................XVIII-43XIII. DISCHARGE.........................................................................................................XVIII-43XIV. CONVERSION OR DISMISSAL..........................................................................XVIII-43XV. “FAST TRACK” TO CONFIRMATION................................................................XVIII-45 A. Chapter 11A Procedures – Eastern District.................................................XVIII-45 B. Other Districts.............................................................................................XVIII-46XVI. SPECIAL RULES FOR SMALL BUSINESS DEBTORS.....................................XVIII-46 A. Reporting Requirements.............................................................................XVIII-46 B. Automatic Stay............................................................................................XVIII-47 C. Information Requirements..........................................................................XVIII-47 D. Time Restrictions........................................................................................XVIII-47 E. Disclosure Statement..................................................................................XVIII-48XVII. SPECIAL RULES FOR INDIVIDUAL CHAPTER 11 DEBTORS........................XVIII-48
CHAPTER XIXCREDITORS’ COMMITTEES
I. INTRODUCTION......................................................................................................XIX-5II. CHAPTER 7 CREDITORS’ COMMITTEES.............................................................XIX-5 A. Election of the Committee...............................................................................XIX-5 B. Powers and Function of the Committee..........................................................XIX-5
C. Compensation.................................................................................................XIX-6III. CHAPTER 11 CREDITORS’ COMMITTEES...........................................................XIX-6 A. Appointment of Committee.............................................................................XIX-6 1. Western District of North Carolina......................................................XIX-7 2. Middle District of North Carolina.......................................................XIX-8 3. Eastern District of North Carolina.......................................................XIX-8 B. Required Sharing of Information....................................................................XIX-9 C. Organization of Committee and Employment of Professionals......................XIX-9 D. Compensation of Professionals and Employed Agents.................................XIX-11 E. Powers and Functions of Committee.............................................................XIX-12 1. Party in Interest..................................................................................XIX-13 2. Fiduciary Duty...................................................................................XIX-13 3. Reimbursement of Expenses of Committee Members.......................XIX-13 4. Protections for Committee Members.................................................XIX-14
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CHAPTER XXEXECUTORY CONTRACTS AND UNEXPIRED LEASES
I. INTRODUCTION..................................................................................................XX-7II. DEFINITION OF EXECUTORY CONTRACT...........................................................XX-7 A. No Code Definition of “Executory”.................................................................XX-7 B. The Countryman Definition.............................................................................XX-7 C. Variations on the Countryman Definition.........................................................XX-7III. PRE-PETITION TERMINATION OF EXECUTORY CONTRACTS AND UNEXPIRED LEASES................................................................................................XX-8 A. Existence of Contract or Lease.........................................................................XX-8 B. Bankruptcy Termination Clauses......................................................................XX-9IV. REJECTION OR ASSUMPTION OF EXECUTORY CONTRACTS........................XX-9 A. Section 365 Generally .....................................................................................XX-9 1. Time Limits for Assumption or Rejection.............................................XX-9 2. Personal Service Contracts.................................................................XX-10 3. Contracts to Make Loans.....................................................................XX-11 4. Manner of Assumption or Rejection...................................................XX-12 B. Assumption of Executory Contract................................................................XX-12 1. Prerequisites for Assumption..............................................................XX-12 i. Cure or Adequate Assurance of Cure.....................................XX-13 a. Other Than Cash Payment..........................................XX-13 b. Adequate Assurance of Cure......................................XX-13 c. Time Limit for Cure....................................................XX-13 d. Non-Monetary Defaults.............................................XX-14 ii. Compensation or Adequate Assurance of Compensation.......XX-14 iii. Adequate Assurance of Future Performance...........................XX-14 2. Effect of Assumption..........................................................................XX-15 C. Rejection of Executory Contracts...................................................................XX-15 1. Standards of Rejection........................................................................XX-15 D. Effect of Rejection..........................................................................................XX-16 1. Assumption Followed by Rejection...................................................XX-16 2. Limitations on the Amount of Claims Arising Out of Rejection........XX-16 3. Lifting of Automatic Stay With Respect to Personal Property Leases.................................................................................................XX-17 E. Assignment of Executory Contracts...............................................................XX-17 1. Assumption in Compliance With Section 365....................................XX-18 2. Adequate Assurance by Assignee of Future Performance..................XX-18 3. Procedure for Assignment of Executory Contracts............................XX-18 4. Liability of Trustee After Assignment................................................XX-18V. UNEXPIRED LEASES IN BANKRUPTCY.............................................................XX-18 A. Generally.......................................................................................................XX-19 1. State Law Governs Absent a Specific Bankruptcy Provision.............XX-19
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2. Lease Includes Any Rental of Real Property......................................XX-19 B. Performance of Lease Obligations Pending Assumption or Rejection............XX-20 C. Leases of Real Property in Shopping Centers................................................XX-20 1. Definition of “Shopping Center”........................................................XX-20 2. Adequate Assurance of Future Performance of a Shopping Center Lease..................................................................................................XX-21 D. Providing Services and Supplies Under Defaulted Lease Pending Assumption or Rejection...............................................................................XX-22 E. Rejection of Unexpired Leases......................................................................XX-22 1. The Lessor’s Claim Upon Rejection...................................................XX-22 2. Measuring Administrative Rent..........................................................XX-23 3. Limited Administrative Claim Following Post-Assumption Rejection...........................................................................................XX-23 4. Surrender of Premises Upon Rejection...............................................XX-23 F. Lessor May Require Deposit by Assignee......................................................XX-24 G. The Debtor as Lessor.....................................................................................XX-24 1. Effect of Rejection by Debtor/Lessor.................................................XX-24 2. Lessee Alternatives Upon Rejection by Debtor/Lessor......................XX-24VI. LICENSEES OF INTELLECTUAL PROPERTY......................................................XX-25VII. COMMITMENTS TO FEDERAL AGENCIES.........................................................XX-25
CHAPTER XXIREAL ESTATE AND BANKRUPTCY
I. INTRODUCTION....................................................................................................XXI-13II. JURISDICTION.....................................................................................................XXI-13III. PRE-BANKRUPTCY CONSIDERATIONS............................................................XXI-14 A. Preferential Transfers.....................................................................................XXI-15 1. Time of Transfer.................................................................................XXI-15 2. Other Elements of a Preference.........................................................XXI-16 3. Judicial Liens....................................................................................XXI-16 4. Preference Actions as Applied to North Carolina Mechanic’s Liens and Payment Bond Claims Under Chapter 44A of the North Carolina General Statutes..................................................................XXI-17 5. Exceptions to Preferential Transfers..................................................XXI-18 B. Fraudulent Transfers......................................................................................XXI-18 1. Involuntary Transfers, Foreclosures...................................................XXI-19 2. Effect of Avoidance...........................................................................XXI-19IV. POST-PETITION CONSIDERATIONS...................................................................XXI-20 A. Relief from the Automatic Stay......................................................................XXI-20 1. New Exceptions to Automatic Stay Related to Real Property...........XXI-20 2. New Grounds for Relief from Automatic Stay Related to Secured Claims in Real Property.....................................................................XXI-21
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B. Procedure to Obtain Relief from Stay ..........................................................XXI-22 C. Determination of Value.................................................................................XXI-23 D. Modification of Secured Claims Against Real Property...............................XXI-23 E. Avoidance of Post-Petition Transfers............................................................XXI-25V. EXEMPTIONS IN REAL ESTATE..........................................................................XXI-26 A. Statutory Exemptions Pursuant to North Carolina Law.................................XXI-27 B. Tenancy by the Entireties Property...............................................................XXI-28 C. Right of Redemption.....................................................................................XXI-28 D. Objection to Exemptions...............................................................................XXI-29 E. Judgment Liens.............................................................................................XXI-30VI. ABANDONMENT...................................................................................................XXI-32VII. SALE OF REAL ESTATE.........................................................................................XXI-33 A. Sales Free and Clear of Liens and Interests...................................................XXI-34 B. Sale of Jointly Owned Property.....................................................................XXI-35 C. Sale of Real Property in a Chapter 11 Plan...................................................XXI-36 D. Sale of Farmland in a Chapter 12 Case.........................................................XXI-37 E. Sale of Real Property in a Chapter 13 Case...................................................XXI-37VIII. LABOR AND MATERIALMAN’S LIENS..............................................................XXI-38 A. Special Application: Condominium Units....................................................XXI-42
CHAPTER XXII ATTORNEYS’ FEES
I. INTRODUCTION....................................................................................................XVII-7II. DISCLOSURE...................................................................................................XXII-8III. RETENTION............................................................................................................XXII-8
A. Chapters 11 and 12.........................................................................................XXII-9B. Chapter 13....................................................................................................XXII-10C. Chapter 7......................................................................................................XXII-10D. Extent of Representation..............................................................................XXII-11E. Special Counsel............................................................................................XXII-11
IV. QUALIFICATION..................................................................................................XXII-12V. COMPENSATION................................................................................................XXII-13
A. In General....................................................................................................XXII-13 1. Bankruptcy Code and Rules.............................................................XXII-13 2. Factors to be Considered.................................................................XXII-15 3. Cost of Administration Status..........................................................XXII-16B. In Chapters 11 and 12....................................................................................XXII-16 1. Interim Compensation.....................................................................XXII-16
2. Final Compensation.........................................................................XXII-18C. Additional Considerations Regarding Chapter 12 Applications..................XXII-19D. Special Provisions in Chapter 13 Cases.......................................................XXII-19E. Compensation in Chapter 7 Cases................................................................XXII-20
VI. OTHER FEE ALLOWANCES................................................................................XXII-20
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A. Contingency and Flat Fees...........................................................................XXII-20B. Proofs of Claim............................................................................................XXII-21C. Section 503...................................................................................................XXII-21D. Section 506(b)..............................................................................................XXII-22E. Section 502..................................................................................................XXII-23F. Section 1322(e)............................................................................................XXII-23
VII. NOTICING AND PROPOSED ORDERS..............................................................XXII-23
CHAPTER XXIIICHAPTER 9 MUNICIPALITIES
I. INTRODUCTION/HISTORY OF CHAPTER 9......................................................XXIII-7II. ELIGIBILITY UNDER CHAPTER 9......................................................................XXIII-8
A. Requirements for Filing................................................................................XXIII-81. Municipality.....................................................................................XXIII-82. Insolvency........................................................................................XXIII-83. Specifically Authorized.....................................................................XXIII-94. Desire to Effect a Plan/Negotiations with Creditors..........................XXIII-95. Good Faith......................................................................................XXIII-10
III. COMMENCEMENT OF CASE.............................................................................XXIII-10A. Filing of Petition.........................................................................................XXIII-10B. Notice of Commencement..........................................................................XXIII-10C. Objections..................................................................................................XXIII-11D. Special Revenues........................................................................................XXIII-11
IV. EMPLOYMENT AND COMPENSATION OF PROFESSIONALS......................XXIII-11A. Authority to Review Professional Fees.......................................................XXIII-11B. Professionals Employed by Creditors’ Committees....................................XXIII-12
V. TRUSTEES AND AVOIDANCE ACTIONS.........................................................XXIII-12A. Appointment of Trustees.............................................................................XXIII-12B. Avoidance Actions......................................................................................XXIII-13
VI. PROPOSING AND CONFIRMING PLANS OF ADJUSTMENT........................XXIII-13A. Requirements for Confirmation of Plans....................................................XXIII-13
1. Feasibility.......................................................................................XXIII-142. Best Interest of Creditors Test........................................................XXIII-143. Retiree Benefits...............................................................................XXIII-15
B. Cramdown of Non-Accepting, Impaired Classes.......................................XXIII-15VII. OTHER SIGNIFICANT DIFFERENCES FROM CHAPTER 11 CASES.............XXIII-15
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CHAPTER XXIVCHAPTER 9 MUNICIPALITIES
I. INTRODUCTION..................................................................................................XXIV-7II. PETITION FOR RECOGNITION...........................................................................XXIV-7III. INTERIM RELIEF...................................................................................................XXIV-9IV. ORDER OF RECOGNITION...................................................................................XXIV-9V. MAIN V. NON-MAIN PROCEEDINGS.................................................................XXIV-9VI. POST-RECOGNITION RELIEF...........................................................................XXIV-10VII. FOREIGN CREDITOR RIGHTS..........................................................................XXIV-11VIII. EMPLOYMENT ISSUES......................................................................................XXIV-11
CHAPTER XXVADVERSARY PROCEEDINGS AND CONTESTED MATTERS
I. IN GENERAL ...........................................................................................................XXV-9II. JURISDICTION AND VENUE...............................................................................XXV-10 A. Jurisdiction............................................................................................XXV-10 B. Venue...........................................................................................................XXV-10III. REMOVAL.............................................................................................................XXV-12IV. JURY DEMANDS/CONSENT TO TRIAL BY BANKRUPTCY COURT............XXV-12V. APPLICABILITY OF FEDERAL RULES OF CIVIL PROCEDURE AND FEDERAL RULES OF EVIDENCE.......................................................................XXV-12 A. Generally.....................................................................................................XXV-12 B. Amendments to Specific Federal Rules Affecting Adversary Proceedings..XXV-13VI. COMMENCING AN ADVERSARY PROCEEDING............................................XXV-13 A. Preparing and Filing the Complaint and Summons.....................................XXV-13 B. Service of the Complaint and Summons......................................................XXV-15VII. RESPONSIVE PLEADINGS ; AMENDED AND SUPPLEMENTAL PLEADINGS...........................................................................................................XXV-16 A. Answer and Affirmative Defenses...............................................................XXV-16 B. Counterclaims, Crossclaims, Third-Party Claims and Interpleader............XXV-16 C. Amendments to Pleadings............................................................................XXV-17VIII. SPECIAL ACTIONS...............................................................................................XXV-17 A. Class Actions...............................................................................................XXV-17 B. Derivative Proceedings by Shareholders......................................................XXV-18 C. Adversary Proceedings Relating to Unincorporated Associations.............XXV-18 D. Intervention.................................................................................................XXV-18 E. Substitution of Parties..................................................................................XXV-19IX. PRE-TRIAL PROCEDURE IN BANKRUPTCY COURT.....................................XXV-19 A. Provisional Remedies to Secure Satisfaction of Judgment; Injunctive Relief...........................................................................................................XXV-19 B. Pre-Trial Discovery......................................................................................XXV-19
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C. Rule 2004 Examinations..............................................................................XXV-20 1. Scope of Bankruptcy Rule 2004 Examination.................................XXV-20 2. Procedure for Bankruptcy Rule 2004 Examination.........................XXV-20 3. Sanctions for Debtor’s Failure to Attend 2004 Examination...........XXV-21 D. Motion Practice in Adversary Proceedings..................................................XXV-22 E. Pretrial Conferences; Pretrial Orders...........................................................XXV-22X. TRIALS...................................................................................................................XXV-23XI. CONSOLIDATION/SEPARATE TRIALS; DISMISSAL.......................................XXV-23XII. COMPROMISE SETTLEMENTS/ARBITRATION..............................................XXV-24 A. Mediated Settlement Conferences................................................................XXV-24 B. Approval of Settlement................................................................................XXV-24 C. Court Having Authority to Approve Settlement...........................................XXV-25 D. Settlement by Classes..................................................................................XXV-25 E. Standard for Approval..................................................................................XXV-25 F. Arbitration...................................................................................................XXV-27XIII. SUMMARY JUDGMENT/DEFAULT JUDGMENT..............................................XXV-27XIV. OFFER OF JUDGMENT; JUDGMENT.................................................................XXV-27XV. POST-TRIAL MOTIONS AND APPEAL...............................................................XXV-28 A. Rule 52: Amend or Add Findings by the Court...........................................XXV-28 B. Rule 59: New Trials; Amendment of Judgment...........................................XXV-28 C. Stay of Execution.........................................................................................XXV-28XVI. POST-JUDGMENT COLLECTION.......................................................................XXV-29 A. Bill of Costs and Registration of Judgments in Other Districts....................XXV-29 B. Transferring Judgments to State Courts.......................................................XXV-29 C. Execution.....................................................................................................XXV-30XVII. CONTESTED MATTERS.......................................................................................XXV-31
CHAPTER XXVIAPPEALS FROM THE BANKRUPTCY COURT
I. INTRODUCTION...................................................................................................XXVI-9II. METHODS OF APPEAL.........................................................................................XXVI-9 A. Appeal to District Court from Bankruptcy Court.........................................XXVI-9 B. Appeal to Bankruptcy Appellate Panel from Bankruptcy Court.................XXVI-10 C. Appeal to Circuit Court of Appeals............................................................XXVI-10III. APPEALABILITY – FINAL AND INTERLOCUTORY ORDERS.....................XXVI-10IV. SCOPE OF APPELLATE REVIEW......................................................................XXVI-12V. PROCEDURE AND NOTICE OF APPEAL.........................................................XXVI-12 A. Content of Notice of Appeal.......................................................................XXVI-12 B. Time for Filing Notice of Appeal...............................................................XXVI-12 C. Certification of Direct Appeals to the Circuit Court...................................XXVI-13 D. Effect of Certain Motions on Time for Filing Notice of Appeal.................XXVI-14 E. Number of Copies and Service of Notice of Appeal..................................XXVI-15
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F. Record on Appeal.......................................................................................XXVI-15 1. Transcripts on Appeal.....................................................................XXVI-15 2. Docketing of Appeal......................................................................XXVI-16 G. Separate Appeal for Each Party..................................................................XXVI-16VI. STAY PENDING APPEAL....................................................................................XXVI-17VII. BOND ON APPEAL..............................................................................................XXVI-18VIII. TRANSMITTING THE RECORD ON APPEAL.................................................XXVI-18IX. APPELLATE BRIEFS...........................................................................................XXVI-18 A. Time for Filing and Serving Brief..............................................................XXVI-18 B. Form of Brief for Appellant.......................................................................XXVI-18 C. Length of Briefs.........................................................................................XXVI-19 D. Other Briefing Provisions...........................................................................XXVI-19X. HEARING BEFORE THE DISTRICT COURT....................................................XXVI-20XI. DISMISSAL OF THE APPEAL.............................................................................XXVI-20XII. DAMAGES AND COSTS FOR FRIVOLOUS APPEAL.....................................XXVI-20
FORMS APPENDIX
Note: The Bankruptcy Manual Form No. system for the Table of Contents and included at the top of each form was developed for the convenience of locating a form when referenced within the text. The Bankruptcy Manual Form No. is NOT an official form number designation and should not be referenced as such when using a form from this Bankruptcy Practice Manual.
I. OFFICIAL BANKRUPTCY FORMS
Form No. Name of Form1 Exhibit D: Individual Debtor’s Statement of Compliance with Credit Counseling Requirement (Form B 1D; Official Form 1, Exhibit D).................A-112 Voluntary Petition for Individuals Filing for Bankruptcy (Form B 101; Official Form 101).............................................................................................A-133 Initial Statement About an Eviction Judgment Against You (Form B 101A; Official Form 101A)..........................................................................................A-214 Application for Individuals to Pay the Filing Fee in Installments (Form B 103A; Official Form 103A)..........................................................................................A-235 Application to Have the Chapter 7 Filing Fee Waived (Form B 103B; Official Form 103B)..........................................................................................A-256 For Individual Chapter 11 Cases: List of Creditors Who Have the 20 Largest Unsecured Claims Against You and Are Not Insiders (Form B 104; Official Form 104).............................................................................................A-297 Involuntary Petition Against an Individual (Form B 105; Official Form 105).............................................................................................A-358 Summary of Your Assets and Liabilities and Certain Statistical Information (Form B 106 Summary; Official Form 106Sum)................................................A-41
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Form No. Name of Form9 Declaration About an Individual Debtor’s Schedules (Form B 106 Declaration; Official Form 106Dec)......................................................................................A-4310 Schedule A/B: Property (Form B 106A/B; Official Form 106A/B)...................A-4511 Schedule C: The Property You Claim as Exempt (Form B 106C; Official Form 106C)..........................................................................................A-5512 Schedule D: Creditors Who Have Claims Secured by Property (Form B 106D; Official Form 106D)..........................................................................................A-5713 Schedule E/F: Creditors Who Have Unsecured Claims (Form B 106E/F; Official Form 106E/F).......................................................................................A-6114 Schedule G: Executory Contracts and Unexpired Leases (Form B 106G; Official Form 106G).........................................................................................A-6715 Schedule H: Your Codebtors (Form B 106H; Official Form 106H).................A-6916 Schedule I: Your Income (Form B 106I; Official Form 106I)............................A-7117 Schedule J: Your Expenses (Form B 106J; Official Form 106J).......................A-7318 Schedule J-2: Expenses for Separate Household of Debtor 2 (Form B 106J-2; Official Form 106J-2)........................................................................................A-7719 Statement of Financial Affairs for Individuals Filing for Bankruptcy (Form B 107; Official Form 107).......................................................................A-8120 Statement of Intention for Individuals Filing Under Chapter 7 (Form B 108; Official Form 108).............................................................................................A-9321 Bankruptcy Petition Preparer’s Notice, Declaration, and Signature (Form B 119; Official Form 119).............................................................................................A-9522 Statement About Your Social Security Numbers (Form B 121; Official Form 121).............................................................................................A-97 23 Chapter 7 Statement of Your Current Monthly Income (Form B 122A-1; Official Form 122A-1).......................................................................................A-9924 Statement of Exemption from Presumption of Abuse Under § 707(b)(2) (Form B 122A-1Supp; Official Form 122A-1Supp).......................................A-10125 Chapter 7 Means Test Calculation (Form B 122A-2; Official Form 122A-2)...........................................................................................................A-10326 Chapter 11 Statement of Your Current Monthly Income (Form B 122B; Official Form 122B).........................................................................................A-11327 Chapter 13 Statement of Your Current Monthly Income and Calculation of Commitment Period (Form B 122C-1; Official Form 122C-1)........................A-11528 Chapter 13 Calculation of Your Disposable Income (Form B 122C-2; Official Form 122C-2).....................................................................................A-11929 Voluntary Petition for Non-Individuals Filing for Bankruptcy (Form B 201; Official Form 201)...........................................................................................A-12729A Attachment to Voluntary Petition for Non-Individuals Filing for Bankruptcy under Chapter 11 (Form B 201A; Official Form 201A)....................................A-13130 Declaration Under Penalty of Perjury for Non-Individual Debtors (Form B 202; Official Form 202)...........................................................................................A-133
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Form No. Name of Form31 Chapter 11 or Chapter 9 Cases: List of Creditors Who Have the 20 Largest Unsecured Claims and Are Not Insiders (Form B 204; Official Form 204)...A-13532 Involuntary Petition Against a Non-Individual (Form B 205; Official Form 205)...........................................................................................A-13733 Summary of Assets and Liabilities for Non-Individuals (Form B 206 Summary; Official Form 206Sum)....................................................................................A-14134 Schedule A/B: Assets – Real and Personal Property (Form B 206A/B; Official Form 206A/B)....................................................................................A-14335 Schedule D: Creditors Who Have Claims Secured by Property (Form B 206D; Official Form 206D)........................................................................................A-15136 Schedule E/F: Creditors Who Have Unsecured Claims (Form B 206E/F; Official Form 206E/F).....................................................................................A-15537 Schedule G: Executory Contracts and Unexpired Leases (Form B 206G; Official Form 206G)........................................................................................A-16338 Statement of Financial Affairs for Non-Individuals Filing for Bankruptcy (Form B 207; Official Form 207).....................................................................A-16539 Notice of Chapter 7 Bankruptcy Case – No Proof of Claim Deadline (For Individuals or Joint Debtors) (Form B 309A; Official Form 309A)..........A-17940 Notice of Chapter 7 Bankruptcy Case - Proof of Claim Deadline Set (For Individuals or Joint Debtors) (Form B 309B; Official Form 309B).......A-18141 Notice of Chapter 7 Bankruptcy Case – No Proof of Claim Deadline (For Corporations or Partnerships) (Form B 309C; Official Form 309C)......A-18342 Notice of Chapter 7 Bankruptcy Case – Proof of Claim Deadline Set (For Corporations or Partnerships) (Form B 309D; Official Form 309D)........A-18543 Notice of Chapter 11 Bankruptcy Case (For Individuals or Joint Debtors) (Form B 309E; Official Form 309E)...............................................................A-18744 Notice of Chapter 11 Bankruptcy Case (For Corporations or Partnerships) (Form B 309F; Official Form 309F)................................................................A-18945 Notice of Chapter 12 Bankruptcy Case (For Individuals or Joint Debtors) (Form B 309G; Official Form 309G)...............................................................A-19146 Notice of Chapter 12 Bankruptcy Case (For Corporations or Partnerships) (Form B 309H; Official Form 309H)..............................................................A-19347 Notice of Chapter 13 Bankruptcy Case (Form B 309I; Official Form 309I)...A-19548 Chapter 15 Petition for Recognition of Foreign Proceeding (Form B 401; Official Form 401)...........................................................................................A-19749 Proof of Claim (Form B 410; Official Form 410).........................................A-20149A Proof of Claim, Attachment A (Form B 410A; Official Form 410A).............A-20550 Notice of Mortgage Payment Change (Form B 410S-1; Official Form 410S1)......................................................................................A-20751 Notice of Postpetition Mortgage Fees, Expenses, and Charges (Form B 410S-2; Official Form 410S2).......................................................................................A-20952 Caption (Form B 416A; Official Form 416A)................................................A-211
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53 Caption for Use in Adversary Proceeding (Form B 416D; Official Form 416D)........................................................................................A-21354 Notice of Appeal and Statement of Election (Form B 417A; Official Form 417A)........................................................................................A-21555 Certification to Court of Appeals by All Parties (Form B 424; Official Form 424)...........................................................................................A-21756 Cover Sheet for Reaffirmation Agreement (Form B 427; Official Form 427)...........................................................................................A-219 57 Adversary Proceeding Cover Sheet (Form B 1040; Official Form 1040).......A-22158 Notice Required by 11 U.S.C. § 342(b) for Individuals Filing for Bankruptcy (Form B 2010; Official Form 2010)................................................................A-22359 Disclosure of Compensation of Attorney for Debtor (Form B 2030; Official Form 2030).........................................................................................A-22760 Notice of Need to File Proof of Claim Due to Recovery of Assets (Form B 2040; Official Form 2040)................................................................A-22961 Reaffirmation Documents (Form B 2400A; Official Form 2400A)...............A-23162 Summons to Debtor in Involuntary Case (Form B 2500E; Official Form 2500E).......................................................................................A-23963 Appearance of Child Support Creditor or Representative (Form B 2810; Official Form 2810).........................................................................................A-241
II. LOCAL BANKRUPTCY FORMS
A. Eastern District
Form No. Name of Form64 Certification of Mailing Matrix Required by E.D.N.C. LBR 1007-2...............A-24365 Chapter 13 Model Plan....................................................................................A-24566 Corporate Ownership Statement......................................................................A-25167 Motion to Avoid Judicial Lien on Real Property – Individual Debtor – Joint Tenancy – Homestead Exemption – Partial Avoidance..........................A-25368 Motion to Avoid Judicial Lien on Real Property – Individual Debtor – Joint Tenancy – Homestead Exemption – Full Avoidance............................A-25769 Motion to Avoid Judicial Lien on Real Property – Individual Debtor – Joint Tenancy – Wildcard Exemption – Partial Avoidance...........................A-26170 Motion to Avoid Judicial Lien on Real Property – Individual Debtor – Joint Tenancy – Wildcard Exemption – Full Avoidance...............................A-26571 Motion to Avoid Judicial Lien on Real Property – Individual Debtor – Sole Ownership – Homestead Exemption – Partial Avoidance....................A-26972 Motion to Avoid Judicial Lien on Real Property – Individual Debtor – Sole Ownership – Homestead Exemption – Full Avoidance........................A-27373 Motion to Avoid Judicial Lien on Real Property – Individual Debtor – Sole Ownership – Wildcard Exemption – Partial Avoidance........................A-277
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74 Motion to Avoid Judicial Lien on Real Property – Individual Debtor – Sole Ownership – Wildcard Exemption – Full Avoidance............................A-28175 Motion to Avoid Judicial Lien on Real Property – Joint Debtors – Entireties Ownership – Homestead Exemption – Partial Avoidance............A-28576 Motion to Avoid Judicial Lien on Real Property – Joint Debtors – Entireties Ownership – Homestead Exemption – Full Avoidance................A-28977 Motion to Avoid Judicial Lien on Real Property – Joint Debtors – Entireties Ownership – Wildcard Exemption – Partial Avoidance................A-29378 Motion to Avoid Judicial Lien on Real Property – Joint Debtors – Entireties Ownership – Wildcard Exemption – Full Avoidance....................A-29779 Notice of [Motion to] [Objection to] (E.D.N.C., Local Form 1A)................A-30180 Notice of Right to Have Exemptions Designated............................................A-30381 Schedule C-1: Property Claimed as Exempt....................................................A-305
B. Middle District
Form No. Name of Form82 Application for Base Fee (M.D.N.C., Local Form C-13-12(e))....................A-31183 Debtor’s Claim for Property Exemptions (M.D.N.C., Local Form 91C)........A-31384 Election to Opt Out of Presumptive Base Fee................................................A-31985 Notice to Creditors and Proposed Plan...........................................................A-321
C. Western District
Form No. Name of Form86 Notice of Opportunity for Hearing – No Protest (W.D.N.C., Local Form 1)...A-32787 Disclosure to Debtor of Attorney’s Fees Procedure for Chapter 13 Cases (W.D.N.C., Local Form 3)..............................................................................A-32988 Chapter 13 Plan (W.D.N.C., Local Form 4)...................................................A-33389 Chapter 13 Debtor’s Certification and Affidavit – § 341 Meeting (W.D.N.C., Local Form 7)..................................................................................................A-34390 Addendum to Chapter 13 Proof of Claim for Real Property Creditor (Conduit Mortgages) (W.D.N.C., Local Form 14)..........................................A-345
III. MISCELLANEOUS BANKRUPTCY FORMS
Form No. Name of Form91 Application and Affidavit to Employ Accountant...........................................A-34792 Application and Affidavit to Employ Attorney................................................A-35193 Application for Approval of Compensation and Employment of Officer......A-35394 Application for Authority to Employ Attorney for Creditors’ Committee.......A-35595 Ballot for Accepting or Rejecting Plan of Reorganization.............................A-35996 Bylaws of Unsecured Creditors’ Committee...................................................A-361
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Form No. Name of Form97 Certificate of Service.......................................................................................A-36798 Complaint Objecting to Discharge of Debtor..................................................A-36999 Complaint to Compel Sale of Jointly Owned Property...................................A-371100 Complaint to Determine Dischargeability of a Debt......................................A-373101 Complaint to Revoke Discharge......................................................................A-375102 Consultation Agreement and Acknowledgement of Receipt of Disclosures and Instructions...............................................................................................A-377103 Addendum to Consultation Agreement...........................................................A-379104 Contents of Record on Appeal and Statement of Issues.................................A-381105 Contract for Chapter 7 Bankruptcy Services...................................................A-385106 Debtors’ Chapter 12 Plan.................................................................................A-393107 Debtor’s Emergency Motion for Authorization to Use Cash Collateral Pursuant to 11 U.S.C. § 363............................................................................A-401108 Disclosure Statement.......................................................................................A-405109 Final Application for Compensation and Reimbursement of Expenses.........A-415110 Initial Application for Compensation and Reimbursement of Expenses.........A-425111 Initial Estimate of Total Fees to be Incurred....................................................A-429112 Instructions on Providing Information Required by Bankruptcy Law.............A-431113 Interim Application for Compensation and Reimbursement of Expenses......A-435114 Interim Order Authorizing Debtor’s Use of Cash Collateral...........................A-445115 Judgment Determining Debt to be Nondischargeable.....................................A-453116 Motion.............................................................................................................A-455117 Motion by Debtor to Avoid Lien (Judicial Lien).............................................A-457118 Motion by Debtor to Avoid Lien Pursuant to § 522(f) of the Bankruptcy Code................................................................................................................A-459119 Motion for an Order Requiring Debtors to Assume or Reject Unexpired Lease and for Relief from Automatic Stay......................................................A-461120 Motion for Approval of Assumption of Executory Contract...........................A-465121 Motion for Approval of Rejection of Executory Contracts.............................A-469122 Motion for Change of Venue..........................................................................A-471123 Motion for Extension of Time Period to File Notice of Appeal....................A-473124 Motion for Leave to Appeal Interlocutory Order and for Expedited Hearing...A-475125 Motion for Relief from Stay............................................................................A-477126 Motion for Stay of Order Pending Appeal......................................................A-479127 Motion of Creditor Pursuant to § 506(b) of the Bankruptcy Code for Allowance of Attorneys’ Fees.........................................................................A-481128 Motion of Trustee for Approval of a Compromise and Settlement................A-489129 Motion to Allow Subrogation..........................................................................A-491130 Motion to Convert from Chapter 11 to Chapter 7...........................................A-493131 Motion to Dismiss Appeal...............................................................................A-497132 Motion to Dismiss or Convert and Alternative Motion to Appoint a Trustee or Examiner Pursuant to 11 U.S.C. § 1104..........................................................A-499
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Form No. Name of Form133 Motion to Incur Super-Priority and Secured Debt...........................................A-515134 Motion to Modify Section 1301 Stay to Permit Collection From Co-debtors.......................................................................................................A-517135 Motion to Remand...........................................................................................A-519136 Motion to Require Trustee to Abandon Real Property.....................................A-521137 Motion to Transfer Liens to Proceeds.............................................................A-525138 Notice of Appearance......................................................................................A-527139 Notice of Application for Interim Compensation and Reimbursement of Expenses.........................................................................................................A-529140 Notice of Hearing on Recognition of a Foreign Proceeding...........................A-531141 Notice of Motion.............................................................................................A-533142 Notice of Motion to Require Trustee to Abandon Real Property.....................A-535143 Notice of Opportunity for Hearing.................................................................A-537144 Notice of Proposed Private Sale.....................................................................A-539145 Notice of Proposed Public Sale of Property and Notice of Compensation to Auctioneer.......................................................................................................A-541146 Notice of Removal..........................................................................................A-543147 Notice of Unliquidated, Disputed or Contingent Claims.................................A-545148 Notice to Clients Who Contemplate Filing Bankruptcy.................................A-547149 Objection of Creditor to Confirmation of Chapter 11 Plan..............................A-549150 Objection to Confirmation of Chapter 12 Plan...............................................A-563151 Order...............................................................................................................A-565152 Order Allowing Motion to Convert from Chapter 11 to Chapter 7.................A-567153 Order Appointing Attorneys for Debtor in Possession..................................A-569154 Order Appointing Chapter 11 Examiner.........................................................A-571155 Order Appointing Committee of Unsecured Creditors in a Chapter 11 Reorganization..............................................................................................A-573156 Order Approving a Compromise and Settlement............................................A-575157 Order Approving Motion for Order..............................................................A-577158 Order Authorizing and Approving Trustee’s Rejection of Executory Contract Lease................................................................................................A-581159 Order Authorizing Employment of Accountant.............................................A-583160 Order Authorizing Employment of Attorneys for the Official Unsecured Creditors’ Committee......................................................................................A-585161 Order Authorizing Operation of Business.......................................................A-587162 Order Authorizing Rejection of Executory Contracts....................................A-589163 Order Avoiding Lien (Judicial Lien).............................................................A-591164 Order Avoiding Lien (Non-possessory, Non-purchase Money Lien).............A-593165 Order Confirming Plan....................................................................................A-595166 Order Denying Discharge...............................................................................A-597167 Order Granting Motion for Change of Venue and Transferring Case............A-599168 Order Granting Petition Under Chapter 15 to Reorganize Foreign Proceeding....................................................................................................A-601
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Form No. Name of Form169 Order Modifying Co-Debtor Stay...................................................................A-603170 Order Modifying Section 362 Stay.................................................................A-605171 Petition Under Chapter 15 for Recognition of a Foreign Main Proceeding and Memorandum of Law in Support Thereof................................................A-609172 Plan of Reorganization....................................................................................A-633173 Request for Copies of Tape Recording of Meeting of Creditors....................A-645174 Resolution of Board of Directors....................................................................A-647175 Resolution of Board of Directors Authorizing Chapter 11 Bankruptcy.........A-649176 Schedule A: Information to be Provided by Client..........................................A-651177 Statement Mandated by Section 527(b) of the Bankruptcy Code...................A-653178 Statement of Foreign Representative Pursuant to 11 U.S.C. § 1515...............A-655179 Summary of Services Rendered......................................................................A-663180 Trustee’s Motion for Authority to Reject Executory Lease.............................A-665