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Reminder: Procedures Related to Chapter 13 Post Confirmation Transactions

Friday, June 2, 2023

SC LBR 3015-8 provides:


In addition to any other authority granted to the debtor(s), and notwithstanding any plan provision or order confirming a plan, the debtor(s) may, without court or trustee approval:

  1. acquire assets;
  2. obtain credit;
  3. use cash collateral or insurance proceeds derived from a casualty to property of the debtor or the estate, paying any lienholder to the extent of any lien; and
  4. settle or compromise matters not pending before the bankruptcy court in which the debtor(s) is a litigant or beneficiary.

If not otherwise reportable under any other Bankruptcy Code section or Rule, the debtor(s) shall file a report within 10 days of any of the above events, in substantial conformance with the local form, when the event(s) alters by a net value of $25,000 or greater either the net value of the total property or the total debt of the debtor(s) or the estate, or when the event(s) impacts a claim paid by the trustee under a confirmed plan.

Although not required for transactions included in the rule above, if a party seeks entry of an order regarding such transactions the request can be made in one of two ways:

  1. By submitting a proposed order to the court
    1. with the trustee’s consent thereon; or
    2. with the trustee’s notice of consent or of no objection subsequently noted on the CM/ECF docket.
  2. By filing a Motion and Notice compliant with SC LBR 9013-4.