(1) When a Hearing Has Been Set
When parties reach a settlement in a matter that has been set for hearing, the parties shall promptly advise the Court of the settlement and, within the time promised or as required by the Court, shall file the appropriate pleadings and any proposed order concerning the settlement. The Court may extend the time for filing upon request. Failure to file the settlement pleading may result in dismissal of the matter at issue.
(2) Objection Deadline
When approval of a settlement or compromise is required by Fed.R.Bankr.P. 9019, the parties to the agreement shall file a motion to approve the settlement in the bankruptcy case. One of the parties to the agreement shall serve notice on creditors, any trustee, and the UST in accordance with Fed.R.Bankr.P. 2002 and to any other entity as the Court may direct. The notice shall allow twenty-one (21) days from the date of service to file objections to the settlement.
(3) Filing; Certificate of Service
The moving party shall file a copy of the notice and a certificate of service that complies with S.D.Ind. B-9013-2. The motion, notice, and certificate of service may be combined into one document. (A sample combination motion, notice, and certificate of service is available on the Court’s website). If no proper objection is filed, the Court may approve the settlement without further notice or hearing.
(b) Adversary Proceedings
Except as set forth in subparagraph (b)(3) of this rule, if an adversary proceeding is settled before an answer has been filed, the parties may file a stipulation of dismissal. No Court order is entered on that stipulation. However, if the agreement of the parties resulting in dismissal contains conditions precedent or subsequent, then the parties shall file an agreed consent to judgment. The Court shall enter a separate order on that consent to judgment, after notice, if required.
(2) Settlements Under Fed.R.Bankr.P. 9019(a) or (b)
When approval of a settlement or compromise is required by Fed.R.Bankr.P.9019(a) or (b), the trustee or debtor-in-possession shall file a motion to approve the settlement in the bankruptcy case and shall serve notice. The trustee or debtor-in-possession shall file a copy of the notice and a certificate of service that complies with S.D.Ind. B-9013-2. Once the motion is granted, the parties to the adversary proceeding shall then dismiss the adversary proceeding or file an agreed consent to judgment so that the adversary may be closed.
(3) Settlements of Complaints to Deny or Revoke Discharge
Settlements of complaints to deny or revoke discharge are governed by S.D. Ind. B-7041-2.