All posts in Court Clerk Information

New local bankruptcy rules re small business chapter 11

LOCAL BANKRUPTCY RULES AMENDMENTS
EFFECTIVE FEBRUARY 1, 2021

The Board of Judges for the United States Bankruptcy Court, Central District of California, approved the following new rules and amendments to the Court’s Local Bankruptcy Rules (LBRs) that become effective February 1, 2021:

Summary of New Local Bankruptcy Rules
LBR LBR Title Purpose of New Rule
LBR 2015-3 PRECONFIRMATION REQUIREMENTS FOR SUBCHAPTER V DEBTORS, DEBTORS IN POSSESSION, AND TRUSTEES Implements Interim Rule 2015’s postpetition, preconfirmation financial reporting duties of the subchapter V debtor.
LBR 3014-1 ELECTION UNDER 11 U.S.C. § 1111(b) BY SECURED CREDITOR IN SUBCHAPTER V CASES Provides a deadline for secured creditors to make an “1111(b) election” in a subchapter V case.
LBR 3020-2 POSTCONFIRMATION REQUIREMENTS IN A SUBCHAPTER V CASE Implements the SBRA’s postconfirmation reporting requirements under either a consensual or nonconsensual plan.
LBR 3022-2 FULL ADMINISTRATION IN A SUBCHAPTER V CASE Implements the postconfirmation administration and closing of the estate under either a consensual or nonconsensual plan confirmed under the SBRA.

LBR LBR Title Type of Amendment
LBR 2015-2 REQUIREMENTS FOR CHAPTER 11 DEBTORS IN POSSESSION, CHAPTER 11 TRUSTEES, AND SUBCHAPTER V TRUSTEES Amended to address continued applicability to chapter 11 cases, while noting that LBR 2015-3 provides more specific rules applicable to subchapter V cases only.
LBR 3003-1 BAR DATE IN CHAPTER 11 CASES Amended to reflect subchapter V bar dates for prepetition claims as well as governmental entities.
LBR 3017-2 CHAPTER 11 DISCLOSURE STATEMENT – APPROVAL IN SMALL BUSINESS CASES AND WHEN REQUIRED IN SUBCHAPTER V CASES Amended to reflect applicability to subchapter V cases where the Court has ordered that §1125 applies.
LBR 3020-1 CHAPTER 11 PLAN CONFIRMATION AND POSTCONFIRMATION REQUIREMENTS Amended to clarify postconfirmation reporting requirements in traditional, non-subchapter V, chapter 11 cases.
LBR 3022-1 FINAL DECREE AND CLOSING A CHAPTER 11 CASE Amended to provide that it is also applicable to subchapter V cases.
LBR 4002-1 DUTIES OF DEBTOR AT MEETING OF CREDITORS Amended to cross-reference new LBR 2015-3 with respect to duties of a subchapter V debtor.
LBR 6004-1 SALE, USE, OR LEASE OF ESTATE PROPERTY Amended to include subchapter V trustee in possession as entity that may seek to sell property of the estate outside of the ordinary course.

The revised LBRs, and a redline summary of the revisions, are available on the Local Bankruptcy Rules web page of the Court’s website www.cacb.uscourts.gov.

KATHLEEN J. CAMPBELL
CLERK OF COURT

To view the entire Public Notice from the Court’s website select the following link: http://www.cacb.uscourts.gov/news

How to pay the new District Court $25 fee

Email from Keith Higgenbotham

Dear Colleagues!

The District Court is currently finalizing its renewal application and plans to post it on its website with a link to a portal so that we can pay online using a credit card.  It plans to send out a Notice to its practitioners and to our Bankruptcy Court Clerk.  Once the Notice is received, our Clerk of the Court will send out its own Notice to all the bankruptcy CM/ECF users with a link to the District Court’s website and portal.  The District Court’s goal is to have the renewal application posted and the portal setup by the end of next week.

So some advice:

  1.   You do not need to send in a check to District Court with the hope that it will be applied correctly.

  2.  PLEASE do not send a check to the Bankruptcy Court since it has nothing to do with this fee.

cdcbaa member

Keith Higginbotham

Notifying the State Court of the Automatic Stay

More stuff I didn’t know.  A person on the California Bankruptcy Specialists listserve complained that the Superior Court in Orange wanted him to pay a first appearance fee in order to file a Notice of Automatic Stay.  A tip of the hat to Frank X. Ruggier for his response, ”If you haven’t appeared, it is the other parties responsibility to file Notice of Stay.”

ATTORNEY’S RESPONSIBILITIES FOR GIVING OF REQUIRED NOTICE TO COURT
Rule 3.650(a) of the California Rules of Court requires the party who requested or caused a stay of the proceedings to notify the court of its existence, unless that party has not appeared or is not subject to the jurisdiction of the court, in which case the plaintiff in the pending action must immediately notify the court of the stay.  Therefore, if you or your assignee commenced a civil action to recover attorney’s fees and/or costs from the client, and the clients has not appeared in the action, it is the responsibility of you or your assignee to notify the court of the automatic stay.  Judicial Council Form CM-180 has been adopted for mandatory use in giving notice of a stay of proceedings, and a copy is attached for your use.

Very Nice Profile of Kathy Campbell, Clerk of the Court

This was written by Corey Weber and published by the Insolvency Law Committee of the California State Bar

August 15, 2017 

The following is a profile of Kathleen J. (Kathy) Campbell, Executive Officer/Clerk of Court for the United States Bankruptcy Court for the Central District of California (the “bankruptcy court”).  Ms. Campbell met members of the Insolvency Law Committee in her Roybal Courthouse office and discussed her personal and professional background, the bankruptcy court’s operations and pending issues and observations.

Ms. Campbell was appointed to her current bankruptcy court position in 2010. The Central District of California is home to the largest bankruptcy court in the country, with divisions located in Los Angeles, Riverside, Santa Ana, San Fernando Valley and Santa Barbara. Read more…

Proposed Amended Local Rules

This is the announcement re the comment period.  As they say, if you don’t speak up now, don’t start complaining later.  A redline of the amendments can be accessed here.

RE: REQUEST FOR COMMENTS ON PROPOSED LOCAL BANKRUPTCY RULES AMENDMENTS

The United States Bankruptcy Court, Central District of California, is proposing amendments to its Local Bankruptcy Rules, to become effective December 1, 2017, and is circulating the proposed amendments to the bar and public for comment.  A summary and redline of the proposed amendments is available on the Court’s website www.cacb.uscourts.gov under Rules, or by clicking here.

All comments on the proposed amendments will be carefully considered by the Court.  Please provide any comments on the proposed amendments as soon as possible but no later than July 7, 2017.

Comments concerning the proposed amendments must be submitted by email to bkcomments@cacb.uscourts.gov and include the name, email address, and phone number of the person submitting the comment.

KATHLEEN J. CAMPBELL

CLERK OF COURT

Court is Asking for Local Students to Participate in 9th Circuit Civics Contest

The U.S. District and Bankruptcy Courts for the Central District of California are encouraging high school students to participate in the 2017 Ninth Circuit Civics essay and video competition (the “Contest”).

The theme of the Contest is “Not to be Forgotten: Legal Lessons of the Japanese Internment.”  Students are asked to relate the legal history of the Japanese internment to current government efforts to protect the nation against terrorism.  The focus is on constitutional conflicts that can arise when national security and individual rights are both at stake. Student winners will receive cash prizes and other recognition.

For more information, please review the attached flyer.

Central District Institutes New LOAN MODIFICATION MANAGEMENT PILOT PROGRAM

Chief Judge Sheri Bluebond has announced that the Central District has established a Loan Modification Management Pilot Program (“LMM”).  Currently, the LMM is just a pilot program and not a district wide program.

Five Judges are participating in the pilot program, Judge Julia W. Brand, Judge Neil W. Bason, Judge Scott H. Yun, Judge Catherine E. Bauer and Judge Martin R. Barash.

There are forms and procedures as you can imagine.  The forms may be accessed here.  The procedures may be accessed here.

The 11 pages of procedures state: Read more…

Video Overview of New Forms

The Bankruptcy Court for the Central District of California has prepared a video overview of the new forms that are effective December 1, 2015 and it is available on our court’s website under the News and Announcements section.

Thank you,

CANB HELP DESK
U.S. Bankruptcy Court, NDC
Information Technology Division

RDM’s Roundup

Starting December 1, we all have to use the new national forms. Although you can hypothetically e-file a case using the old forms and get a case number (and automatic stay…) you will immediately be hit with a case deficiency notice requiring the uploading of the correct/missing forms within seventy-two hours or the case will be dismissed.

The general vibe I get is that attorneys are not that worried about the new forms as the BK software “we” (all!?) use will just spit them out organized correctly, after “we” have input the info the way we always have. Read more…

CM/ECF Signatures

I have been questioned about an /s/ signature we uploaded recently.  It made me pull out the Court Manual and remind myself of the actual requirements for using an /s/ signature.  After 8-9 readings of the same few lines, I think I’ve got it down.

  1. If the signature is of the actual registered user, i.e., the attorney, i.e., me, the hard copy still must be signed and the original signature maintained for five years after the closing of the case.  The /s/ signature may be uploaded by itself.
  2. If the signature is of the debtor, the hard copy must be signed and an ecf Declaration must be signed by the debtor and the registered user.  The /s/ signature can be uploaded with the ecf Declaration.  The original signature must retained for 5 years.
  3. If the signature is someone other than the debtor, but is a client of the registered user, follow number 2 above.  Remember, if you represent a corp, the owner is not the client.  If you represent a bank, the person signing the pleading is not the client.
  4. If the signature is not the debtor and not your client, you cannot use the /s/ signature.  You must upload the actual signature, which they love to call the holographic signature.  Another example of this would be a person in your firm who is not the registered user.  You must upload the holographic signature except when it is a signature of the proof of service.  See next number.
  5. If the signature is an employee of the firm or the registered user, you can upload the /s/ signature on the proof of service – only.