Official Procedure Last Change April 30, 2010
Motion to Prohibit or Condition Use of Cash Collateral
How to file:
Location of event: Bankruptcy > Motions, Applications & Briefs > Cash Collateral, Motion to Prohibit/Condition Use of
- A motion to prohibit use of cash collateral arises most frequently in a Chapter 11 case. "Cash collateral" is defined in 11 U.S.C. 363(a) as property on which one or more creditors has a lien. Before using that cash collateral, the debtor is supposed to get Court approval. If the debtor doesn't, then the creditor may ask the Court to prohibit use. See also Fed.R.Bankr.P. 4001(a) for more on the procedure governing such motions.
- Frequently the request to prohibit use of cash collateral is not filed as a separate motion, but is included in a motion for relief from stay.
- 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 Cash Collateral, Motion to Prohibit/Condition Use of 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.