Official Procedure Last Change February 3, 2016
Motion to Appoint Chapter 11 Trustee
How to file:
Location of event: Bankruptcy > Motions, Applications & Briefs > Appoint Trustee Pursuant to Sec. 1104(a), Motion to
- Motions to Appoint Trustee or Examiner are filed by the United States Trustee or any interested party.
- The court shall order the appointment of a trustee for any of the following reasons:
- for cause, including fraud, dishonesty, incompetence, or gross mismanagement of the affairs of the debtor by current management; or
- if such appointment is in the interests of creditors, any equity security holders, and other interests of the estate.
- Not later than 30 days after the court orders the appointment of a trustee, if a party requests it the United States Trustee shall convene a meeting of creditors for the purpose of electing a person to serve as trustee in the case.
- If an eligible, disinterested trustee is elected at a meeting of creditors, the United States Trustee shall file a report certifying that election.
- The trustee elected shall be considered to have been selected and appointed for purposes and the service of the prior appointed trustee shall terminate.
- The court shall resolve any dispute arising out of an election.
- If no party requests that a meeting of creditors be convened then the United States Trustee appoints the trustee.
- Whether the trustee is elected or appointed, the court is asked to approve the appointment and must do so before it becomes effective.
- If the court does not order the appointment of a trustee, then at any time before the confirmation of a plan, on request of a party in interest or the United States trustee, and after notice and a hearing, the court shall order the appointment of an examiner to conduct such an investigation of the debtor as is appropriate, including an investigation of any allegations of fraud, dishonesty, incompetence, misconduct, mismanagement, or irregularity in the management of the affairs of the debtor of or by current or former management of the debtor, if:
- such appointment is in the interests of creditors, any equity security holders, and other interests of the estate; or
- the debtor’s fixed, liquidated, unsecured debts, other than debts for goods, services, or taxes, or owing to an insider, exceed $5,000,000.
- If the court orders the appointment of a trustee or an examiner, if a trustee or an examiner dies or resigns during the case or is removed, or if a trustee fails to qualify, then the United States trustee, after consultation with parties in interest, shall appoint, subject to the court’s approval, one disinterested person other than the United States trustee to serve as trustee or examiner.
- This discussion concerns the appointment of a trustee or examiner pursuant to 11 U.S.C. §1104 and does NOT apply to the appointment of a liquidating “trustee” or other person as part of a confirmed plan. The responsibilities and powers of a “trustee” appointed by a confirmed plan are found in the plan itself and not in the Code and Rules.
- The Motion must be signed by the filing party or their attorney.
- A Certificate of Service must be included.
- A proposed order must be uploaded.
1. Log into CM/ECF.
2. Select Bankruptcy > Motions, Applications & Briefs.
3. Enter case number (in the format xx-xxxxx) and click Next.
4. Select Appoint Trustee Pursuant to Sec. 1104(a), Motion to from the event list and 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, or cannot be selected, view instructions on adding a 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.
10. 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.
11. Select prefix text, if applicable, 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.
12. Verify final docket text. If correct, click Next to submit.
Note: The Notice of Electronic Filing displays giving you the document number. Copies of this notice are immediately e-mailed to all participants who receive electronic notification in the case.