Motion for Authority to Pay Pre-Petition Claims of Alleged Critical Vendors

General Information

• A motion for authority to pay pre-petition claims of alleged critical vendors may be filed in the Chapter 11 case of an operating company.  (The motion would be rare in a Chapter 12 or Chapter 13 case, and highly unusual in a Chapter 7 case.) If the debtor wants to stay in business, it may need to continue receiving products or services from suppliers who are owed money pre-petition.  Without Court authority, the debtor cannot pay these pre-petition creditors before confirming a plan.  Therefore the debtor may file this motion.  No clear authority under the Bankruptcy Code exists for these motions, and under Seventh Circuit case law they are disfavored.  If any Code authority is cited, it is usually Section 105, which permits the Court to make orders necessary to carry out the Code.  

• This motion is on the list of first day motions in Chapter 11 cases contained in L.R. 9013-3(f).  If filed with the bankruptcy petition or within 2 business days of the filing of the petition, the motion will be set for hearing on an expedited basis without the filing of a motion for emergency/expedited hearing.

Step by Step Instructions:

1. Log into CM/ECF

2. Select Bankruptcy > Motions,  Applications &  Briefs

3. Enter the case number (e.g. xx-xxxxx). Click Next

4. Select Authority to Pay Pre-Petition Claims of Alleged Critical Vendors, Motion for from the event list. Click Next

5. Select appropriate radio button to indicate whether or not the Motion you are filing is amended.

6. Check box if jointly filing with another attorney, click Next.

7. If you indicated that you are filing jointly with other attorney(s), select additional attorney(s) and click Next

NOTE: You cannot add attorneys. Only attorneys who have previously entered an appearance will be available for selection.

8. Select the party filer.  If the party is not listed, click on Add/Create New Party. Click Next

Note: The "Attorney/Party Association” screen may appear. If your party selection was correct, check the box to create an association and click Next.

9. Browse to select the Motion (pdf file).  Click Next

10. If Motion is being filed within two business days of the filing of the Chapter 11 petition, you are asked if you are filing as a First Day Motion. Check the appropriate radio button and click Next

11. If you indicated in step 5 that you are filing an amended motion, all pending motions on the docket are displayed. Select the motion that is being amended and click Next

12. Enter additional text, if desired, and/or select prefix text and click Next

Note: The prefix text option is not available if you indicated in Step 5 that the Motion you are filing is amended. The additional text option is not always available.

13. Verify final docket text. If correct, click Next to submit and to review Notice of Electronic Filing.

Curing a Deficient Filing:

If the motion is deficient: A new motion, using the above procedure, fixing deficient items, must be filed prior to the deficiency deadline or your original filing may be stricken by the court.

Orders:

Order must be supplied by the moving party