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Wednesday, May 15, 2024

Due to a change in practice by a committee member, there is a vacancy on the Advisory Committee on Local Rules, Practice, and Procedures.  In addition to reviewing the local rules, practice, and procedures, the Advisory Committee researches the current market rate of interest pursuant to applicable authorities. To be considered for appointment, anyone interested in service should reply to on or before May 31, 2024.

            After the comment period regarding the proposed Local Rule 2016-1 circulated in October 2023 expired, the Advisory Committee on Local Rules, Practice, and Procedures reviewed all feedback received from various members of the bar and met to consider the best path forward.  The Advisory Committee discussed various ways to proceed based on the feedback received, but ultimately decided to develop a new proposed SC LBR 2016-1 in an effort to resolve many of the concerns raised in comments from the bar.
            The resulting proposed SC LBR 2016-1 more closely resembles current Rule 2016-1 than the previously proposed Rule, but incorporates the following important changes: 

1. Raises the expedited fee amount (the “no look” fee) to $5,000 for a consumer debtor and $6,000 for a debtor    engaged in business
2. Defines what constitutes a “business case”
3. Sets forth a list of those matters excluded from the expedited fee amount
4. Allows the debtor’s attorney to file an application for reimbursement of costs if costs and expenses for a particular matter exceed $50
5. Provides that the initial disbursement after confirmation remains at $1,500
6. Requires the Advisory Committee to review the expedited fee amount at least every other year to determine if an increase is warranted.

This revised proposed rule represents the Advisory Committee’s effort to resolve the bar’s concerns with both the current Rule and the previously proposed Rule, as well as the Advisory Committee’s effort to compromise and balance the interests and viewpoints of debtors, debtors’ attorneys, the chapter 13 trustees, the United States trustee, and the Judges.

Next Steps: Comments to the proposed rule can be submitted to, or by directly contacting Advisory Committee members listed below by no later than May 31, 2024.  A clean copy and a redline of the proposed rule are included here.  All comments will be seriously considered, and adoption of this rule is not predetermined. Rules are usually effective December 1 as part of the local rule review process. Should LBR 2016-1 be finalized earlier, after considering any comments and edits received, steps can be taken to make it effective at an earlier date.

Advisory Committee on Local Rules, Practice, and Procedures
Linda K. Barr
Kyle A. Brannon
Kevin T. Brown
Phillip M. Fajgenbaum
Dawn M. Hardesty
William S. Koehler
Travis E. Menk
Vaughan R. Perry
Roger K. Pruitt
David B. Wheeler