Local Bankruptcy Rules

Front 1

Who are the bankruptcy judges in Kansas and where do they work?

Back 1

Robert E. Nugent - Chief Judge (Wichita)
Janice Miller Karlin (Topeka)
Dale L. Somers (Topeka)
Robert D. Berger (KC)

Front 2

List the hierarchy of rules that underlie and aid the application of the statutory bankruptcy law. There are 6!

Back 2

1. Federal Rules of Civil Procedure
2. Federal Rules of Evidence
3. Federal Rules of Bankruptcy Procedure
4. The Rules of Practice and Procedure of the U.S. DISTRICT Court for the district of Kansas
5. The Rules of Practice and Procedure of the U.S. BANKRUPTCY Court for the district of Kansas
6. Bankruptcy Court Standing Orders
7. Procedural Guidelines of Individual Bankruptcy Judges

Front 3

How do you cite to the local rules?

Back 3

For example, D. Kan. LBR 1001.1

Front 4

Will the clerk accept checks made payable by the debtor for paying the filing fee?

Back 4

No. D. Kan. LBR 1006.1

Front 5

List the documents and order of filing for the initial filing of a voluntary petition.

Back 5

1. Voluntary Petition
2. Statement of Financial Affairs
3. List of unsecured creditors holding the 20 largest claims
4. Schedules A through J
5. Summary of Schedules
6. Statistical summary of certain liabilities
7. Declaration concerning debtor's schedules
8. Chpt 7 statement of individual debtor's intentions
9. Statement of attorney compensation
10. statement of monthly income and means test
11. Certification required under section 521.

Front 6

What documents should NOT be attached to the petition?

Back 6

1. Application to pay fees in installments.
2. Application for waiver of Chapter 7 filing fee.
3. Matrix and Matrix verification
4. Chapter 13 plan
5. Procedural form B-21 statement of social security number
6. record of any interest in account or program of the type listed in section 521
7. Certificate of credit counseling or debt repayment plan.
1007.1

Front 7

If you amend schedules D, E, F, G, H, or matrices, who must you notify?

Back 7

1. Affected entities
2. Trustee
3. The United States Trustee
1009.1

Front 8

Notices to creditors mailed by the clerk are normally sent through what agency?

Back 8

Bankruptcy Noticing Center, or BNC. 2002.1

Front 9

Will notices sent by the BNC that are undelivered be returned to the attorney?

Back 9

Yes. 2002.1

Front 10

A matrix that isn't submitted in the right format may cause notices to be undeliverable by the BNC. The Court will then contact the attorney. How long does the attorney have to fix it and how does it get fixed?

Back 10

Attorney has 5 days to refile the corrected matrix and to serve notice on all the creditors who were not notified initially. 2002.1

Front 11

If the United States is listed as a creditor in the matrix, who must be listed in the matrix other than the United States creditor?

Back 11

The U.S. Attorney's office where the petition was filed. There is a list of addresses for KC, Topeka, and Wichita in 2002.2 Also, there is a list of US creditor addresses.

Front 12

If the State is listed as a creditor, who must be listed in the matrix other than the Kansas creditor?

Back 12

None. But there are addresses for each State creditor listed in 2014.1

Front 13

What is the time limit for amending a non-priority proof of claim in a Chapter 7 case?

Back 13

Prior of notice of final distribution by the trustee.

Front 14

What is the time limit for amending a priority proof of claim in a Chapter 7 case?

Back 14

A priority claim may be filed or amended on or before the date that is ten days after the mailing to creditors of the summary of the trustee’s final report or the date on which the trustee commences final distribution under § 726, whichever is earlier. 3001.1

Front 15

If the trustee has not objected to the secured claims, how much notice must he or she give to all the parties who have filed secured claims of his or her intent to file and serve a notice of final distribution?

Back 15

If the trustee has not objected to secured claims, he or she must give 20 days’ notice to all parties who have filed secured claims of his or her intent to file and serve a notice of final distribution. 3001.1

Front 16

What is the time limit for a trustee to file a request for payment of administrative expenses in a chapter 7 case?

Back 16

A request for payment of administrative expenses must be filed prior to the notice of final distribution by the trustee. 3001.1

Front 17

What must the trustee have from the debtor in a 341 meeting

Back 17

In addition to the other duties required under § 521, the debtor must provide to the trustee at least seven days prior to the meeting of creditors held under § 341, completed copies of the most recent
one year of Federal and State income tax returns filed pre-petition with the respective taxing authority, where applicable, unless the trustee requests otherwise. If the debtor has not filed a tax return for the most recent tax year ending before the commencement of the case and that return is not yet due, the debtor shall timely file the
return with the appropriate taxing authorities, and provide a signed copy of the return to the trustee, within seven days of its filing. 4002.1

Front 18

How long does a debtor have to comply with a written request from the trustee for information?

Back 18

15 days. 4002.2

Front 19

When should the requests for information and responses be filed with the court?

Back 19

Only when the debtor fails to comply and the trustee files a motion to compel.

Front 20

What are the special rules for filing federal and state and unemployment tax returns for pre-petition taxes filed after the petition for bankruptcy?

Back 20

Must be filed at special addresses for the returns and notices must be sent to other entities, like the U.S. attorney, as well. 4002.3

Front 21

If a debtor has a car with a lien that s/he wants to keep, what must s/he do to keep it?

Back 21

Keep the insurance in force and provide proof of insurance to the trustee before the 341 meeting or upon written request of the creditor. 4070.1

Front 22

If debtor keeping home, may mortgage holder contact debtor without violating the automatic stay

Back 22

Yes, if they follow the rules set forth in the standing order.

Front 23

What are conduit payments?

Back 23

In Chpt 13 case, regular payments owed by a Debtor to a Creditor holding a claim secured by the Debtor’s principal residence shall be made by the Debtor to the
Trustee for payment through the Chapter 13 plan if the Debtor is (i) delinquent as of the petition date, or, (ii) becomes delinquent after the petition date. Such payments are referred to herein as “conduit payments.” See standing order.

Front 24

Should an application to pay fees in installments be attached to the petition?

Back 24

No.

Front 25

Should the application for a waiver of chapter 7 filing fee be attached to the petition?

Back 25

No

Front 26

Should the matrix and matrix verification be attached to the petition?

Back 26

No

Front 27

Should a chapter 13 plan be attached to the petition?

Back 27

No

Front 28

Should B-21, statement of social security number, be attached to the petition?

Back 28

No

Front 29

Should the certificate of credit counseling be attached to the petition?

Back 29

No

Front 30

Should the Statement of Financial Affairs be attached to the Petition?

Back 30

Yes

Front 31

Should the Chapter 7 statement of individual debtor's intentions be attached to the petition?

Back 31

Yes

Front 32

Should the Statement of attorney compensation be attached to the petition?

Back 32

Yes

Front 33

Does the phrase "after notice and a hearing" require a hearing?

Back 33

No. The phrase means after such notice as is appropriate in the particular circumstances, and such opportunity for a hearing as is appropriate in the particular circumstances; but authorizes an act without an actual hearing if such notice is given properly and if such a hearing is not requested timely by a party in interest; or there is insufficient time for a hearing to be commenced before such act must be done, and the court authorizes such act; 11 USC 102.

Front 34

Does a trustee have the capacity to sue and be sued?

Back 34

Yes. 11 USC 323.

Front 35

What must the trustee make sure that the debtor is aware of at the 341 meeting?

Back 35

(1) the potential consequences of seeking a discharge in bankruptcy, including the effects on credit history;
(2) the debtor's ability to file a petition under a different chapter of this title;
(3) the effect of receiving a discharge of debts under this title; and
(4) the effect of reaffirming a debt.

Front 36

How long must the trustee wait to stop payment on any unpaid checks?

Back 36

90 days after final distribution. 11 USC 347.

Front 37

What section of the code addresses the automatic stay

Back 37

11 USC 362

Front 38

How long does the stay of an act against property automatically last?

Back 38

Until the property is no longer property of the estate.

Front 39

In a chapter 7 case, does the automatic stay extend to business partners?

Back 39

No.

Front 40

How long does the stay creditor action in a chapter 7 case?

Back 40

Time of discharge

Front 41

How long does the stay creditor action in a chapter 13 case?

Back 41

Time of discharge

Front 42

If section 362 doesn't stay a proceeding that should be stayed, where can you find authority for the court to order a stay?

Back 42

105.

Front 43

Can a bank freeze assets in an account during the automatic stay?

Back 43

Yes. Where bank holds valid, perfected security interest in debtors' cash assets on account with bank, which assets are "cash collateral" as defined in 11 USCS § 363(a) and debtors had obtained no consent from bank or authorization from Court to use cash as required by 11 USCS § 363(c)(2), refusal of bank to release cash collateral by "freezing" account did not constitute contempt or violation of 11 USCS § 362(a). In re Gazelle, Inc. (1982, BC WD Wis) 17 BR 617.

Front 44

How long does a debtor have to make a deposit to keep utilities on after filing the petition?

Back 44

20 days. Action by telephone company in discontinuing Chapter 7 debtors' telephone service upon debtors' notice of filing to telephone company normally would violate 11 USCS § 362, but 11 USCS § 366(b) excepts utilities from broad effect of stay where debtors or trustee fails to make deposit within 20 days. Lloyd v Champaign Tel. Co. (1985, BC SD Ohio) 52 BR 653,

Front 45

May a creditor approach the debtor regarding reaffirmation agreements during the automatic stay?

Back 45

Yes. While the automatic stay is in effect, a creditor may engage in post-petition negotiations pertaining to a bankruptcy-related reaffirmation agreement under 11 USCS § 524 so long as the creditor does not engage in coercive or harassing tactics. Jamo v Katahdin Fed. Credit Union (In re Jamo) (2002, CA1) 283 F3d 392, 39 BCD 86, 48 CBC2d 70,

Front 46

Can you be audited by the IRS during the automatic stay?

Back 46

Yes.

Front 47

When may a landlord repossess property during the automatic stay?

Back 47

It must be nonresidential property and the lease must have expired.

Front 48

If employee files for bankruptcy, may the employer withhold income for investment in an employer-sponsored retirement plan?

Back 48

Yes, but only to the extent that the income is withheld to pay off loans from the retirement plan.

Front 49

May a landlord evict a tenant who is under the protection of the automatic stay?

Back 49

Yes, but only if the landlord obtained an order for eviction prior to the bankruptcy filing.

Front 50

What is the best argument that a landlord could make to evict a tenant who is protected by the automatic stay?

Back 50

The property is endangered or that illegal use of a controlled substance on the property.

Front 51

If a creditor files a motion to lift the automatic stay, and all is quiet after that, and the court takes no action, is the stay lifted?

Back 51

Yes, it seems so but I can't tell for sure. It is lifted after 30 days or maybe 60 days. It sounds like the key is to set it for a hearing as a 'notice and hearing' are required to prevent the automatic lifting of the automatic stay. 362(e)

Front 52

Who has the burden of proof of the debtor's equity in property in an action to obtain relief from the stay?

Back 52

The creditor.

Front 53

If a violation of the automatic stay injures the debtor, may the debtor recover punitive damages?

Back 53

Yes, if the violation was willful. If the violation was not willful, limited to actual damages.