Official Procedure Last Change June 14, 2016
Motion for Authority to Pay Pre-Petition Claims of Alleged Critical Vendors
How to file:
Location of event: Bankruptcy > Motions, Applications & Briefs > Authority to Pay Pre-Petition Claims of Alleged Critical Vendors, Motion forInvestment Guidelines Pursuant to Sec.345, Motion for
- 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.
- 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 Authority to Pay Pre-Petition Claims of Alleged Critical Vendors, Motion for 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 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. 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.
13. 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.