Proposed New Local Rule 7041-1 (Dismissing Adversary Proceedings) and Amended Local Rule 9019-1 (Settlements and Agreed Orders Pursuant to FRBP 9019)

The Judges of the Court propose the addition of a new Local Bankruptcy Rule, to be titled "LBR 7041-1 Dismissing Adversary Proceedings." The new local rule seeks to address the proper manner for dismissal of complaints objecting to discharge under § 727, including in connection with a proposed settlement. There is not a nationally recognized procedure for requesting such dismissals, and the Court believes adding a local rule on the subject would be a benefit to the bench and the bankruptcy bar. Additionally, because practitioners might also be inclined to review Local Bankruptcy Rule 9019-1 (Settlements and Agreed Orders Pursuant to FRBP 9019) when contemplating dismissal of an action, LBR 9019-1 will be amended to include reference to the new rule LBR 7041-1. You can view the memorandum from the Clerk of Court here.