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ARTICLES ON BANKRUPTCY

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L.B.R. 4001.1 Automatic Stay - Relief From.

(a) Motions; Service. No summons is required. The movant shall file with the clerk a certificate of service attached to the motion, evidencing the mode of service and the names and addresses of the parties served, and a certificate of conference evidencing compliance with District Court Local Civil Rule 7.1(a) and N.D. TX L.B.R. 9014.1(c)(1). The motion shall contain a notice of the requirement of the filing of a response to the motion as set forth in subdivision (b) of this rule. A motion for relief from the automatic stay shall be served on the following parties:

(1) In a chapter 11 case,

(A) The debtor, and, if the debtor is represented by an attorney, to the attorney, and

(B) Any and all committees appointed under the Bankruptcy Code or its/their authorized agent, or

(C) If no committee has been appointed, the twenty largest unsecured creditors, and

(D) The United States trustee and any trustee appointed in the case, and

(E) All parties who filed an appearance and requested notice in the case.

(2) In a chapter 7, 12, or 13 case,

(A) The debtor, and, if the debtor is represented by an attorney, to the attorney, and

(B) Any and all committees appointed under the Bankruptcy Code or its/their authorized agent,

(C) The United States trustee and the chapter 7, 12 or 13 trustee appointed in the case, and

(D) All parties who filed an appearance and requested notice in the case.

(b) Response Required. The trustee (if one has been appointed) or the debtor shall file a response to any motion for relief from the automatic stay within 12 days from the service of the motion.(2) The debtor's response shall include a detailed and comprehensive statement as to how the Movant can be "adequately protected" if the stay is to be continued. If the debtor does not file a response as required, the allegations in the creditor's motion for relief from the automatic stay shall be deemed admitted, unless good cause is shown why these allegations should not be deemed admitted, and an order granting the relief sought may be entered by default.

(c) Discovery. The time within which responses to discovery requests on automatic stay issues are due under Bankruptcy Rules 7028-7036, connection with motions for relief from the automatic stay is shortened from 30 to 12 days. Depositions may be taken commencing at the expiration of 10 calendar days after service of the motion for relief from the automatic stay.

(d) Attorney certification. In any evidentiary hearing conducted on a motion for relief from the automatic stay, all counsel shall certify before the presentation of evidence: 1) that good faith settlement discussions have been held or why they were not held; (2) that all exhibits, appraisals and lists of witnesses (it is presumed that the debtor(s) will testify) have been exchanged at least 2 days in advance of the hearing date; and (3) the anticipated length of the hearing. Exhibits will be marked in advance of the hearing and a bound, marked set of exhibits will be presented to the court at the commencement of the hearing.

(e) Preliminary Hearings; Dallas Division. Absent compelling circumstances, evidence presented at preliminary hearings in the Dallas Division on motions for relief from the automatic stay will be by affidavit only. The party requesting the hearing must serve evidentiary affidavits at least 7 days in advance of such hearing; the responding party must serve evidentiary affidavits at least 48 hours in advance of such hearing; the party requesting the hearing is responsible for making sure all other hearing participants known to such party are aware of this Rule. Failure of an attorney to attend a scheduled and noticed preliminary hearing may be grounds for default relief regardless of the presence or absence of affidavits


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