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Practice Reminders

Tuesday, March 26, 2024

The Judges remind the bar of certain requirements provided in the Court’s Local Bankruptcy Rules.

Delegated Service of Certain Orders and the Filing of Certificates of Service
SC LBR 5075-1 delegates the service of a variety of orders, including orders confirming plans, claim orders, orders on motions to reconsider dismissal, and orders on motions to extend stay.  Consult the Rule for a complete list. Although the docket text generated upon entry of the order may reflect and remind you that service of the order is delegated, it is the filer’s responsibility to conform to the Rules.  Moreover, some orders may have language delegating service on a particular party.  Accordingly, it is imperative that you also review every order to ensure you comply with the delegated service provisions. 
SC LBR 9013-3 requires filing certificates of service.  It appears that many attorneys either are not serving delegated orders or are serving orders but not filing certificates of service.  Failure to comply with the Rules may affect the enforceability of these orders.  Please review your internal office procedures to ensure that you comply with these Rules.

Timely Filing and Scheduling of Motions to Extend Stay
The Court has received numerous Motions to Extend Stay pursuant to 11 U.S.C. § 362(c)(3) filed weeks after the bankruptcy petition was filed. This results in the inability to comply with SC LBR 9013-4(b)(1)(A) and Exhibit B thereto (Motions/Applications approved for non-passive, self-scheduled hearings), which requires a 14-day notice of the hearing and an objection date that is at least 7 days prior to the hearing date. Failure to timely file the Motion may also result in expiration of the automatic stay prior to the hearing date.  While compliance with the 7-day requirement under SC LBR 9013-1 may sometimes be difficult depending on available self-scheduled hearing dates, it can be easily attained and unnecessary hearings avoided if the Motion is filed with the petition. It is the debtor or debtor attorney’s responsibility to affirmatively address any such timing issues. An affidavit or declaration consistent with 28 U.S.C. § 1746 of the movant in support shall be filed and served with the Motion.

Disclosure of Attorney’s Fees
Chapter 13 debtor’s attorneys are reminded that those opting for payment pursuant to SC LBR 2016-1(b)(1) (expedited fee approval procedure) by filing the Attorney Fee Disclosure Statement pursuant to Fed. R. Bankr. P. 2016(b) (Director’s Bankruptcy Form B2030) are required to include a copy of their signed representation agreement with the debtor(s) when filing the B2030 Form.  Additionally, SC LBR 2016-1(b)(2) requires disclosure of any supplemental compensation regardless of whether the amount will be paid through disbursements by the Trustee or paid directly by the debtor(s).  This disclosure may be accomplished through an amended B2030 Form or by filing a Statement of Supplemental Fees.