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Proposed Interim Amendments to Local Bankruptcy Rules and Forms - redline (12/19/2019)

E.D. Pa. Standing Order — Proposed Interim Amendments to Local Bankruptcy Rules and Fo

INTERIM AMENDMENTS TO THE FEDERAL RULES OF BANKRUPTCY PROCEDURE 1 1 Rule 1007. Lists, Schedules, Statements, and Other 2 Documents; Time Limits 3 ***** 4 (b) SCHEDULES, STATEMENTS, AND OTHER 5 DOCUMENTS REQUIRED. 6 ***** 7 (5) An individual debtor in a chapter 11 case 8 (unless under subchapter V) shall file a statement of 9 current monthly income, prepared as prescribed by 10 the appropriate Official Form. 11 ***** 1 These interim bankruptcy rules (the Interim Rules) have been prepared by the Advisory Committee on Bankruptcy Rules and approved by the Judicial Conference of the United States to be adopted as local rules by the Bankruptcy Courts to implement the procedural and substantive changes to the Bankruptcy Code made by the Small Business Reorganization Act of 2019. The Interim Rules will be withdrawn after similar amendments can made to the Rules of Bankruptcy Procedure under the normal Rules Enabling Act process. New material is underlined in red; matter to be omitted is lined through. 2 INTERIM RULES OF BANKRUPTCY PROCEDURE 12 (h) INTERESTS ACQUIRED OR ARISING 13 AFTER PETITION. If, as provided by § 541(a)(5) of the 14 Code, the debtor acquires or becomes entitled to acquire any 15 interest in property, the debtor shall within 14 days after the 16 information comes to the debtor’s knowledge or within such 17 further time the court may allow, file a supplemental 18 schedule in the chapter 7 liquidation case, chapter 11 19 reorganization case, chapter 12 family farmer’s debt 20 adjustment case, or chapter 13 individual debt adjustment 21 case. If any of the property required to be reported under 22 this subdivision is claimed by the debtor as exempt, the 23 debtor shall claim the exemptions in the supplemental 24 schedule. The This duty to file a supplemental schedule in 25 accordance with this subdivision continues even after the 26 case is closed, except for property acquired after an order is 27 entered: notwithstanding the closing of the case, except that 28 the schedule need not be filed in a chapter 11, chapter 12, or INTERIM RULES OF BANKRUPTCY PROCEDURE 3 29 chapter 13 case with respect to property acquired after entry 30 of the order 31 (1) confirming a chapter 11 plan (other than one 32 confirmed under § 1191(b)); or 33 (2) discharging the debtor in a chapter 12 case, or a 34 chapter 13 case, or a case under subchapter V of 35 chapter 11 in which the plan is confirmed under 36 § 1191(b). 37 ***** Committee Note The rule is amended in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116-54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter V of chapter 11. As amended, subdivision (b)(5) of the rule includes an exception for subchapter V cases. Because Code § 1129(a)(15) is inapplicable to such cases, there is no need for an individual debtor in a subchapter V case to file a statement of current monthly income. Subdivision (h) is amended to provide that the duty to file a supplemental schedule under the rule terminates upon confirmation of the plan in a subchapter V case, unless the plan is confirmed under § 1191(b), in which case it terminates upon discharge as provided in § 1192. 4 INTERIM RULES OF BANKRUPTCY PROCEDURE 1 Rule 1020. Small Business Chapter 11 Reorganization 2 Case for Small Business Debtors 3 (a) SMALL BUSINESS DEBTOR 4 DESIGNATION. In a voluntary chapter 11 case, the debtor 5 shall state in the petition whether the debtor is a small 6 business debtor and, if so, whether the debtor elects to have 7 subchapter V of chapter 11 apply. In an involuntary chapter 8 11 case, the debtor shall file within 14 days after entry of the 9 order for relief a statement as to whether the debtor is a small 10 business debtor and, if so, whether the debtor elects to have 11 subchapter V of chapter 11 apply. Except as provided in 12 subdivision (c), the The status of the case as a small business 13 case or a case under subchapter V of chapter 11 shall be in 14 accordance with the debtor’s statement under this 15 subdivision, unless and until the court enters an order finding 16 that the debtor’s statement is incorrect. 17 (b) OBJECTING TO DESIGNATION. Except as 18 provided in subdivision (c), the The United States trustee or INTERIM RULES OF BANKRUPTCY PROCEDURE 5 19 a party in interest may file an objection to the debtor’s 20 statement under subdivision (a) no later than 30 days after 21 the conclusion of the meeting of creditors held under 22 § 341(a) of the Code, or within 30 days after any amendment 23 to the statement, whichever is later. 24 (c) APPOINTMENT OF COMMITTEE OF 25 UNSECURED CREDITORS. If a committee of unsecured 26 creditors has been appointed under § 1102(a)(1), the case 27 shall proceed as a small business case only if, and from the 28 time when, the court enters an order determining that the 29 committee has not been sufficiently active and 30 representative to provide effective oversight of the debtor 31 and that the debtor satisfies all the other requirements for 32 being a small business. A request for a determination under 33 this subdivision may be filed by the United States trustee or 34 a party in interest only within a reasonable time after the 35 failure of the committee to be sufficiently active and 36 representative. The debtor may file a request for a 6 INTERIM RULES OF BANKRUPTCY PROCEDURE 37 determination at any time as to whether the committee has 38 been sufficiently active and representative. 39 (dc) PROCEDURE FOR OBJECTION OR 40 DETERMINATION. Any objection or request for a 41 determination under this rule shall be governed by Rule 9014 42 and served on: the debtor; the debtor’s attorney; the United 43 States trustee; the trustee; the creditors included on the list 44 filed under Rule 1007(d) or, if any a committee has been 45 appointed under § 1102(a)(3), the committee or its 46 authorized agent, or, if no committee of unsecured creditors 47 has been appointed under § 1102, the creditors included on 48 the list filed under Rule 1007(d); and any other entity as the 49 court directs. Committee Note The rule is amended in response to the enactment of the Small Business Reorganization Act of 2019 (“SBRA”), Pub. L. No. 116-54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter V of chapter 11. The title and subdivision (a) of the rule are amended to include that option and to require a small business debtor to state in its voluntary petition, or in a statement filed within 14 days after the order for relief is INTERIM RULES OF BANKRUPTCY PROCEDURE 7 entered in an involuntary case, whether it elects to proceed under subchapter V. The rule does not address whether the court, on a case-by-case basis, may allow a debtor to make an election to proceed under subchapter V after the times specified in subdivision (a) or, if it can, under what conditions. Former subdivision (c) of the rule is deleted because the existence or level of activity of a creditors’ committee is no longer a criterion for small-business-debtor status. The SBRA eliminated that portion of the definition of “small business debtor” in § 101(51D) of the Code. Former subdivision (d) is redesignated as subdivision (c), and the list of entities to be served is revised to reflect that in most small business and subchapter V cases there will not be a committee of creditors. 8 INTERIM RULES OF BANKRUPTCY PROCEDURE 1 Rule 2009. Trustees for Estates When Joint 2 Administration Ordered 3 (a) ELECTION OF SINGLE TRUSTEE FOR 4 ESTATES BEING JOINTLY ADMINISTERED. If the 5 court orders a joint administration of two or more estates 6 under Rule 1015(b), creditors may elect a single trustee for 7 the estates being jointly administered, unless the case is 8 under subchapter V of chapter 7 or subchapter V of chapter 9 11 of the Code. 10 (b) RIGHT OF CREDITORS TO ELECT 11 SEPARATE TRUSTEE. Notwithstanding entry of an order 12 for joint administration under Rule 1015(b), the creditors of 13 any debtor may elect a separate trustee for the estate of the 14 debtor as provided in § 702 of the Code, unless the case is 15 under subchapter V of chapter 7 or subchapter V of chapter 16 11. 17 (c) APPOINTMENT OF TRUSTEES FOR 18 ESTATES BEING JOINTLY ADMINISTERED. INTERIM RULES OF BANKRUPTCY PROCEDURE 9 19 ***** 20 (2) Chapter 11 Reorganization Cases. If the 21 appointment of a trustee is ordered or is required by 22 the Code, the United States trustee may appoint one 23 or more trustees for estates being jointly 24 administered in chapter 11 cases. 25 ***** Committee Note The rule is amended in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116-54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter V of chapter 11. In a case under that subchapter, § 1183 of the Code requires the United States trustee to appoint a trustee, so there will be no election. Accordingly, subdivisions (a) and (b) of the rule are amended to except cases under subchapter V from their coverage. Subdivision (c)(2), which addresses the appointment of trustees in jointly administered chapter 11 cases, is amended to make it applicable to cases under subchapter V. 10 INTERIM RULES OF BANKRUPTCY PROCEDURE 1 Rule 2012. Substitution of Trustee or Successor 2 Trustee; Accounting 3 (a) TRUSTEE. If a trustee is appointed in a chapter 4 11 case (other than under subchapter V), or the debtor is 5 removed as debtor in possession in a chapter 12 case or in a 6 case under subchapter V of chapter 11, the trustee is 7 substituted automatically for the debtor in possession as a 8 party in any pending action, proceeding, or matter. 9 ***** Committee Note The rule is amended in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116-54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter V of chapter 11. Subdivision (a) of the rule is amended to include any case under that subchapter in which the debtor is removed as debtor in possession under § 1185 of the Code. INTERIM RULES OF BANKRUPTCY PROCEDURE 11 1 Rule 2015. Duty to Keep Records, Make Reports, and 2 Give Notice of Case or Change of Status 3 (a) TRUSTEE OR DEBTOR IN POSSESSION. A 4 trustee or debtor in possession shall: 5 (1) in a chapter 7 liquidation case and, if the 6 court directs, in a chapter 11 reorganization case 7 (other than under subchapter V), file and transmit to 8 the United States trustee a complete inventory of the 9 property of the debtor within 30 days after qualifying 10 as a trustee or debtor in possession, unless such an 11 inventory has already been filed; 12 (2) keep a record of receipts and the 13 disposition of money and property received; 14 (3) file the reports and summaries required by 15 § 704(a)(8) of the Code, which shall include a 16 statement, if payments are made to employees, of the 17 amounts of deductions for all taxes required to be 12 INTERIM RULES OF BANKRUPTCY PROCEDURE 18 withheld or paid for and in behalf of employees and 19 the place where these amounts are deposited; 20 (4) as soon as possible after the 21 commencement of the case, give notice of the case to 22 every entity known to be holding money or property 23 subject to withdrawal or order of the debtor, 24 including every bank, savings or building and loan 25 association, public utility company, and landlord 26 with whom the debtor has a deposit, and to every 27 insurance company which has issued a policy having 28 a cash surrender value payable to the debtor, except 29 that notice need not be given to any entity who has 30 knowledge or has previously been notified of the 31 case; 32 (5) in a chapter 11 reorganization case (other 33 than under subchapter V), on or before the last day 34 of the month after each calendar quarter during 35 which there is a duty to pay fees under 28 U.S.C. INTERIM RULES OF BANKRUPTCY PROCEDURE 13 36 § 1930(a)(6), file and transmit to the United States 37 trustee a statement of any disbursements made 38 during that quarter and of any fees payable under 28 39 U.S.C. § 1930(a)(6) for that quarter; and 40 (6) in a chapter 11 small business case, unless 41 the court, for cause, sets another reporting interval, 42 file and transmit to the United States trustee for each 43 calendar month after the order for relief, on the 44 appropriate Official Form, the report required by 45 § 308. If the order for relief is within the first 15 days 46 of a calendar month, a report shall be filed for the 47 portion of the month that follows the order for relief. 48 If the order for relief is after the 15th day of a 49 calendar month, the period for the remainder of the 50 month shall be included in the report for the next 51 calendar month. Each report shall be filed no later 52 than 21 days after the last day of the calendar month 53 following the month covered by the report. The 14 INTERIM RULES OF BANKRUPTCY PROCEDURE 54 obligation to file reports under this subparagraph 55 terminates on the effective date of the plan, or 56 conversion or dismissal of the case. 57 (b) TRUSTEE, DEBTOR IN POSSESSION, AND 58 DEBTOR IN A CASE UNDER SUBCHAPTER V OF 59 CHAPTER 11. In a case under subchapter V of chapter 11, 60 the debtor in possession shall perform the duties prescribed 61 in (a)(2)–(4) and, if the court directs, shall file and transmit 62 to the United States trustee a complete inventory of the 63 debtor’s property within the time fixed by the court. If the 64 debtor is removed as debtor in possession, the trustee shall 65 perform the duties of the debtor in possession prescribed in 66 this subdivision (b). The debtor shall perform the duties 67 prescribed in (a)(6). 68 (bc) CHAPTER 12 TRUSTEE AND DEBTOR IN 69 POSSESSION. In a chapter 12 family farmer’s debt 70 adjustment case, the debtor in possession shall perform the 71 duties prescribed in clauses (2)–(4) of subdivision (a) of this INTERIM RULES OF BANKRUPTCY PROCEDURE 15 72 rule and, if the court directs, shall file and transmit to the 73 United States trustee a complete inventory of the property of 74 the debtor within the time fixed by the court. If the debtor is 75 removed as debtor in possession, the trustee shall perform 76 the duties of the debtor in possession prescribed in this 77 paragraph subdivision (c). 78 (cd) CHAPTER 13 TRUSTEE AND 79 DEBTOR. 80 (1) Business Cases. In a chapter 13 81 individual’s debt adjustment case, when the debtor is 82 engaged in business, the debtor shall perform the 83 duties prescribed by clauses (2)–(4) of subdivision 84 (a) of this rule and, if the court directs, shall file and 85 transmit to the United States trustee a complete 86 inventory of the property of the debtor within the 87 time fixed by the court. 88 (2) Nonbusiness Cases. In a chapter 13 89 individual’s debt adjustment case, when the debtor is 16 INTERIM RULES OF BANKRUPTCY PROCEDURE 90 not engaged in business, the trustee shall perform the 91 duties prescribed by clause (2) of subdivision (a) of 92 this rule. 93 (de) FOREIGN REPRESENTATIVE. In a case in 94 which the court has granted recognition of a foreign 95 proceeding under chapter 15, the foreign representative shall 96 file any notice required under § 1518 of the Code within 14 97 days after the date when the representative becomes aware 98 of the subsequent information. 99 (ef) TRANSMISSION OF REPORTS. In a chapter 100 11 case the court may direct that copies or summaries of 101 annual reports and copies or summaries of other reports shall 102 be mailed to the creditors, equity security holders, and 103 indenture trustees. The court may also direct the publication 104 of summaries of any such reports. A copy of every report or 105 summary mailed or published pursuant to this subdivision 106 shall be transmitted to the United States trustee. INTERIM RULES OF BANKRUPTCY PROCEDURE 17 Committee Note The rule is amended in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116-54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter V of chapter 11. Subdivision (b) is amended to prescribe the duties of a debtor in possession, trustee, and debtor in a subchapter V case. Those cases are excepted from subdivision (a) because, unlike other chapter 11 cases, there will generally be both a trustee and a debtor in possession. Subdivision (b) also reflects that § 1187 of the Code prescribes reporting duties for the debtor in a subchapter V case. Former subdivisions (b), (c), (d), and (e) are redesignated (c), (d), (e), and (f) respectively. 18 INTERIM RULES OF BANKRUPTCY PROCEDURE 1 Rule 3010. Small Dividends and Payments in Cases 2 Under Chapter 7 Liquidation, Subchapter V of Chapter 3 11, Chapter 12 Family Farmer’s Debt Adjustment, and 4 Chapter 13 Individual’s Debt Adjustment Cases 5 ***** 6 (b) CASES UNDER SUBCHAPTER V OF 7 CHAPTER 11, CHAPTER 12, AND CHAPTER 13 8 CASES. In a case under subchapter V of chapter 11, chapter 9 12, or chapter 13, case no payment in an amount less than 10 $15 shall be distributed by the trustee to any creditor unless 11 authorized by local rule or order of the court. Funds not 12 distributed because of this subdivision shall accumulate and 13 shall be paid whenever the accumulation aggregates $15. 14 Any funds remaining shall be distributed with the final 15 payment. Committee Note The rule is amended in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116-54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter INTERIM RULES OF BANKRUPTCY PROCEDURE 19 V of chapter 11. To avoid the undue cost and inconvenience of distributing small payments, the title and subdivision (b) are amended to include subchapter V cases. 20 INTERIM RULES OF BANKRUPTCY PROCEDURE 1 Rule 3011. Unclaimed Funds in Cases Under Chapter 7 2 Liquidation, Subchapter V of Chapter 11, Chapter 12 3 Family Farmer’s Debt Adjustment, and Chapter 13 4 Individual’s Debt Adjustment Cases 5 The trustee shall file a list of all known names and 6 addresses of the entities and the amounts which they are 7 entitled to be paid from remaining property of the estate that 8 is paid into court pursuant to § 347(a) of the Code. Committee Note The rule is amended in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116-54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter V of chapter 11. The rule is amended to include such cases because § 347(a) of the Code applies to them. INTERIM RULES OF BANKRUPTCY PROCEDURE 21 1 Rule 3014. Election Under § 1111(b) by Secured 2 Creditor in Chapter 9 Municipality or Chapter 11 3 Reorganization Case 4 An election of application of § 1111(b)(2) of the 5 Code by a class of secured creditors in a chapter 9 or 11 case 6 may be made at any time prior to the conclusion of the 7 hearing on the disclosure statement or within such later time 8 as the court may fix. If the disclosure statement is 9 conditionally approved pursuant to Rule 3017.1, and a final 10 hearing on the disclosure statement is not held, the election 11 of application of § 1111(b)(2) may be made not later than the 12 date fixed pursuant to Rule 3017.1(a)(2) or another date the 13 court may fix. In a case under subchapter V of chapter 11 in 14 which § 1125 of the Code does not apply, the election may 15 be made not later than a date the court may fix. The election 16 shall be in writing and signed unless made at the hearing on 17 the disclosure statement. The election, if made by the 22 INTERIM RULES OF BANKRUPTCY PROCEDURE 18 majorities required by § 1111(b)(1)(A)(i), shall be binding 19 on all members of the class with respect to the plan. Committee Note The rule is amended in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116-54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter V of chapter 11. Because there generally will not be a disclosure statement in a subchapter V case, see § 1181(b) of the Code, the rule is amended to provide a deadline for making an election under § 1111(b) in such cases that is set by the court. INTERIM RULES OF BANKRUPTCY PROCEDURE 23 1 Rule 3016. Filing of Plan and Disclosure Statement in a 2 Chapter 9 Municipality or Chapter 11 Reorganization 3 Case 4 (a) IDENTIFICATION OF PLAN. Every proposed 5 plan and any modification thereof shall be dated and, in a 6 chapter 11 case, identified with the name of the entity or 7 entities submitting or filing it. 8 (b) DISCLOSURE STATEMENT. In a chapter 9 or 9 11 case, a disclosure statement, if required under § 1125 of 10 the Code, or evidence showing compliance with § 1126(b) 11 shall be filed with the plan or within a time fixed by the 12 court, unless the plan is intended to provide adequate 13 information under § 1125(f)(1). If the plan is intended to 14 provide adequate information under § 1125(f)(1), it shall be 15 so designated, and Rule 3017.1 shall apply as if the plan is a 16 disclosure statement. 17 ***** 24 INTERIM RULES OF BANKRUPTCY PROCEDURE 18 (d) STANDARD FORM SMALL BUSINESS 19 DISCLOSURE STATEMENT AND PLAN. In a small 20 business case or a case under subchapter V of chapter 11, the 21 court may approve a disclosure statement and may confirm 22 a plan that conform substantially to the appropriate Official 23 Forms or other standard forms approved by the court. Committee Note The rule is amended in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116-54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter V of chapter 11. Subdivision (b) of the rule is amended to reflect that under § 1181(b) of the Code, § 1125 does not apply to subchapter V cases (and thus a disclosure statement is not required) unless the court for cause orders otherwise. Subdivision (d) is amended to include subchapter V cases as ones in which Official Forms are available for a reorganization plan and, when required, a disclosure statement. INTERIM RULES OF BANKRUPTCY PROCEDURE 25 1 Rule 3017.1. Court Consideration of Disclosure 2 Statement in a Small Business Case or in a Case Under 3 Subchapter V of Chapter 11 4 (a) CONDITIONAL APPROVAL OF 5 DISCLOSURE STATEMENT. In a small business case or 6 in a case under subchapter V of chapter 11 in which the court 7 has ordered that § 1125 applies, the court may, on 8 application of the plan proponent or on its own initiative, 9 conditionally approve a disclosure statement filed in 10 accordance with Rule 3016. On or before conditional 11 approval of the disclosure statement, the court shall: 12 (1) fix a time within which the holders of claims and 13 interests may accept or reject the plan; 14 (2) fix a time for filing objections to the disclosure 15 statement; 16 (3) fix a date for the hearing on final approval of the 17 disclosure statement to be held if a timely objection 18 is filed; and 26 INTERIM RULES OF BANKRUPTCY PROCEDURE 19 (4) fix a date for the hearing on confirmation. 20 ***** Committee Note The rule is amended in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116-54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter V of chapter 11. The title and subdivision (a) of the rule are amended to cover such cases when the court orders that § 1125 of the Code applies. INTERIM RULES OF BANKRUPTCY PROCEDURE 27 1 Rule 3017.2. Fixing of Dates by the Court in Subchapter 2 V Cases in Which There Is No Disclosure Statement 3 In a case under subchapter V of chapter 11 in which 4 § 1125 does not apply, the court shall: 5 (a) fix a time within which the holders of claims 6 and interests may accept or reject the plan; 7 (b) fix a date on which an equity security holder 8 or creditor whose claim is based on a security must 9 be the holder of record of the security in order to be 10 eligible to accept or reject the plan; 11 (c) fix a date for the hearing on confirmation; and 12 (d) fix a date for transmission of the plan, notice 13 of the time within which the holders of claims and 14 interests may accept or reject the plan, and notice of 15 the date for the hearing on confirmation. Committee Note The rule is added in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116-54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter 28 INTERIM RULES OF BANKRUPTCY PROCEDURE V of chapter 11. Because there generally will not be a disclosure statement in a subchapter V case, see § 1181(b) of the Code, the rule is added to authorize the court in such a case to act at a time other than when a disclosure statement is approved to set certain times and dates. INTERIM RULES OF BANKRUPTCY PROCEDURE 29 1 Rule 3018. Acceptance or Rejection of Plan in a Chapter 2 9 Municipality or a Chapter 11 Reorganization Case 3 (a) ENTITIES ENTITLED TO ACCEPT OR 4 REJECT PLAN; TIME FOR ACCEPTANCE OR 5 REJECTION. A plan may be accepted or rejected in 6 accordance with § 1126 of the Code within the time fixed by 7 the court pursuant to Rule 3017, 3017.1, or 3017.2. Subject 8 to subdivision (b) of this rule, an equity security holder or 9 creditor whose claim is based on a security of record shall 10 not be entitled to accept or reject a plan unless the equity 11 security holder or creditor is the holder of record of the 12 security on the date the order approving the disclosure 13 statement is entered or on another date fixed by the court 14 under Rule 3017.2, or fixed for cause, after notice and a 15 hearing. For cause shown, the court after notice and hearing 16 may permit a creditor or equity security holder to change or 17 withdraw an acceptance or rejection. Notwithstanding 18 objection to a claim or interest, the court after notice and 30 INTERIM RULES OF BANKRUPTCY PROCEDURE 19 hearing may temporarily allow the claim or interest in an 20 amount which the court deems proper for the purpose of 21 accepting or rejecting a plan. 22 ***** Committee Note Subdivision (a) of the rule is amended to take account of the court’s authority to set times under Rules 3017.1 and 3017.2 in small business cases and cases under subchapter V of chapter 11. INTERIM RULES OF BANKRUPTCY PROCEDURE 31 1 Rule 3019. Modification of Accepted Plan in a Chapter 2 9 Municipality or a Chapter 11 Reorganization Case 3 ***** 4 (b) MODIFICATION OF PLAN AFTER 5 CONFIRMATION IN INDIVIDUAL DEBTOR CASE. If 6 the debtor is an individual, a request to modify the plan under 7 § 1127(e) of the Code is governed by Rule 9014. The request 8 shall identify the proponent and shall be filed together with 9 the proposed modification. The clerk, or some other person 10 as the court may direct, shall give the debtor, the trustee, and 11 all creditors not less than 21 days’ notice by mail of the time 12 fixed to file objections and, if an objection is filed, the 13 hearing to consider the proposed modification, unless the 14 court orders otherwise with respect to creditors who are not 15 affected by the proposed modification. A copy of the notice 16 shall be transmitted to the United States trustee, together 17 with a copy of the proposed modification. Any objection to 18 the proposed modification shall be filed and served on the 32 INTERIM RULES OF BANKRUPTCY PROCEDURE 19 debtor, the proponent of the modification, the trustee, and 20 any other entity designated by the court, and shall be 21 transmitted to the United States trustee. 22 (c) MODIFICATION OF PLAN AFTER 23 CONFIRMATION IN A SUBCHAPTER V CASE. In a 24 case under subchapter V of chapter 11, a request to modify 25 the plan under § 1193(b) or (c) of the Code is governed by 26 Rule 9014, and the provisions of this Rule 3019(b) apply. Committee Note The rule is amended in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116-54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter V of chapter 11. Subdivision (c) is added to the rule to govern requests to modify a plan after confirmation in such cases under § 1193(b) or (c) of the Code.
Official source: https://www.paed.uscourts.gov/sites/paed/files/documents/locrules/bankruptcy/PropIntRules. · retrieved 2026-07-23