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B-9019-1. STIPULATIONS AND SETTLEMENTS

(a)   Notice

When the trustee or debtor-in-possession is required to obtain approval of a settlement or compromise under 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 provide a 21-day Objection Notice to the Debtor, creditors, any trustee, the UST, and to any other entity as the Court may direct. The movant shall file a copy of the notice and a Certificate of Service. The motion, notice, and Certificate of Service may be combined into one document, a sample of which is available on the Court’s website.

(b)   Chapter 13 Motion to Approve Settlement Distribution

The Debtor in a Chapter 13 case is required to report to the trustee the resolution of any matter for which a Notice of Retention and Compensation Terms under S.D. Ind. B-2014-2 was filed.  The Debtor shall not disburse any settlement proceeds until consent of the trustee has been obtained.  The trustee may file a Motion to Approve Settlement Distribution that discloses any amount proposed to fund the plan, any amount proposed to be paid to the Debtor, the proposed compensation to Professionals and whether that compensation is subject to Court approval.  If the trustee negotiates receipt of funds sufficient to pay all claims in full, the trustee may instead file a Report to Court.  The trustee shall provide a 21-day Objection Notice to the Debtor, creditors, the UST and to any other entity as the Court may direct, and shall file a copy of the notice and a Certificate of Service.

(c)   Adversary Proceedings

(1)     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 the debtor-in-possession shall file a motion to approve the settlement in the bankruptcy case and shall serve notice. The trustee or the debtor-in-possession shall file a copy of the notice and a Certificate of Service. Once the motion is granted, the parties to the adversary proceeding shall dismiss the adversary proceeding or file an agreed consent to judgment so that the adversary may be closed.

(2)     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.