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Local Bankr.R.2015-2

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Local Bankr. R. 2015-2 Subchapter V Trustee Deposit.

EFFECTIVE MARCH 16, 2026

  1. Unless the Court orders otherwise, the Debtor shall make monthly periodic payments to the Subchapter V Trustee for the purpose of providing for the payment of fees and expenses of the Subchapter V Trustee once allowed.  No later than seven (7) days after the filing of the Notice of Appointment of Subchapter V Trustee, and unless the Court orders otherwise, the Debtor shall tender to the Subchapter V Trustee the sum of $1,000.00 in good funds for the payment of legal fees and expenses of the Trustee. The Debtor shall make additional payments of $1,000.00 every thirty (30) days thereafter, unless otherwise ordered.
  1. The Subchapter V Trustee shall hold the Debtor’s funds in escrow pending a further Court order.  The amount of each deposit or of the aggregate of deposits shall be subject to adjustment by the Court upon the motion of any party-in-interest.  The Debtor shall include these payments when proposing any cash collateral budget, borrowing budget or other budget or projection, and shall account for such funds in each monthly operating report. 
  1. Any payment of compensation and reimbursement to the Subchapter V Trustee from the escrowed funds shall be subject to allowance and approval by order of the Court under 11 U.S.C. §§ 503(b), 330, 331 and 1194, FRBP 2016, and Local Bankruptcy Rule 2016-1. 
  1. Any failure of the Debtor to tender the required amount within seven (7) days after the filing of the Notice of the Appointment of Subchapter V Trustee, or to timely fund any subsequent monthly installment payment, may be cause for conversion or dismissal of the case. 
  1. Funds delivered by the Debtor to the Subchapter V Trustee, or funds held by the Debtor that are due in amounts contemplated by this Local Bankruptcy Rule 2015-2 shall not be subject to any pre-petition or post-petition lien of any secured lender, shall not be subject to setoff or recoupment, and otherwise shall remain available solely for the payment of allowed Subchapter V Trustee fees and expenses.  The provisions of this Local Bankruptcy Rule 2015-2 shall apply notwithstanding any dismissal or conversion of the case, any termination or expiration of any cash collateral order, borrowing order, and any order granting relief from stay in favor of a secured lender.