![](media/image1.png){width="0.8076388888888889in" height="0.8in"}

U.S. Department of Justice

Office of the United States Trustee

> Suite 128 (850) 521-5050
>
> 110 East Park Avenue Fax (850) 521-5055
>
> Tallahassee, FL 32301

**OPERATING GUIDELINES AND REPORTING REQUIREMENTS**

**FOR DEBTORS IN POSSESSION AND TRUSTEES**

Title 28, §586(a)(3) of the United States Code, directs the United
States Trustee to supervise the administration of all Chapter 11 cases.
To comply with this charge, the United States Trustee for Region 21 has
established these Operating Guidelines and Reporting Requirements for
Chapter 11 debtors and trustees. Chapter 11 debtors, trustees, and their
attorneys must notify the United States Trustee of significant matters
affecting their case. The United States Trustee must be served with
copies of all papers filed in the case, except as otherwise directed by
the Court or the United States Trustee.

**Timely compliance with these requirements is essential. Failure to
comply may result in motions to dismiss or convert this case for
liquidation under Chapter 7, for the appointment of a Chapter 11 trustee
or examiner, or for imposition of sanctions. If you believe that the
requirements should be waived or varied in your case, you should
immediately submit a written request to the appropriate Field Office of
the United States Trustee. However, debtors, if represented, should
contact their attorney with questions about this material.**

**[GUIDELINES AND OPERATING REQUIREMENTS]{.underline}**

1\. **[[List of Creditors]{.underline}]{.smallcaps}**. When the petition
is filed, a list of the debtor\'s twenty (20) largest unsecured
creditors, excluding insiders, must be filed with the Clerk of the
Bankruptcy Court. The complete name, address, e-mail address, telephone
number, and fax number of each creditor must be included.

2\. **[[Initial Debtor Interview]{.underline}]{.smallcaps}**. In chapter
11 cases, the United States Trustee will meet with debtor and debtor\'s
counsel prior to the Section 341 meeting of creditors to obtain
requested information and ensure that debtor understands the
requirements of these Guidelines. The United States Trustee will notify
debtor and debtor's counsel of the time and date of this meeting.

3\. **[[Books and Records]{.underline}]{.smallcaps}**. Debtor\'s books
and records (i.e. general ledger accounts) must be closed as of the
petition date and new books and records opened. The old books and
records must be retained and be available to the United States Trustee.

4\. **[[Bank Accounts]{.underline}]{.smallcaps}**. All pre-petition bank
accounts controlled by debtor must be closed immediately upon the filing
of the petition, and Debtor shall immediately open new
debtor-in-possession operating, payroll and tax accounts at a United
States Trustee Authorized Depository. In addition, individual debtors
engaged in business as sole proprietors should open a separate
debtor-in-possession account for payment of personal living expenses.
All business revenues must be deposited into the general operating
account, with amounts needed to fund the other accounts being
transferred to those accounts as necessary. Deposits, other than
transfers from the operating account, should not be made directly to the
payroll or tax accounts. Any deviation from the three required Debtor In
Possession Accounts must be approved by the United States Trustee prior
to the Initial Debtor Interview.

The checks for each account must bear the words \"debtor in possession\"
and the bankruptcy case number. Disbursements other than by numbered
check are prohibited. Counter checks are prohibited. Requests to use,
create, or maintain petty cash accounts must be submitted to the United
States Trustee in writing. Each account must be located in a United
States Trustee approved depository. A list of approved depositories is
available from the United States Trustee field office. The Debtor In
Possession is required to maintain bank records and canceled checks,
which shall be provided to the United States Trustee upon request.

Within fifteen (15) days of filing the petition, debtor must provide the
United States Trustee with a sworn statement describing all pre-petition
accounts by depository name, account number, and account name, verifying
that each such pre-petition account has been closed. A form that
complies with this requirement can be obtained from the United States
Trustee website. Additionally, proof of closing old accounts and opening
new accounts must be provided.

5\. **[[Proof of Insurance]{.underline}]{.smallcaps}**. Within fifteen
(15) days of filing the petition, debtor must provide the United States
Trustee with proof of the insurance coverage required by these
guidelines. The proof must disclose, at a minimum, the effective date
and the termination date of the coverage; the type and limits of
coverage provided, and the identity of all loss payees. Binders must be
accompanied by paid receipts. Debtor should instruct its insurance
companies to list the United States Trustee as a Certificate Holder.
Upon expiration or other termination of any coverage, debtor shall
immediately provide the United States Trustee with adequate proof of
replacement coverage. Debtor shall maintain at least the following
coverage, where appropriate:

a\. General comprehensive liability;

b\. Property (personal & realty);

c\. Casualty and theft;

d\. Workers\' compensation;

e\. Vehicle;

f\. Product liability;

g\. Flood insurance;

h\. Directors and Officers liability;

i\. Professional malpractice;

j\. Other coverage customary or prudent in the debtor\'s business, or
required by law.

6\. **[[Physical Inventory]{.underline}]{.smallcaps}**. Within thirty
(30) days of filing the petition, debtor, if requested by the United
States Trustee, shall provide the United States Trustee with a physical
inventory as of the petition date. The inventory shall be itemized and
indicate cost values. For purposes of this reporting requirement,
"inventory" is defined as all goods in possession of the debtor intended
for sale to customers. It includes finished goods and unfinished goods.
It does not include fixed assets owned by the debtor.

[7. **[Rental Property Records]{.underline}**]{.smallcaps}. Debtors who
own commercial or residential rental

property shall provide the United States Trustee with a rent roll as of
the petition date within fifteen (15) days from the filing of the
petition. The rent roll shall consist of (1) a description of each
property owned, (2) rental price of each unit, (3) security or other
deposits held, (4) occupancy and payment status of each unit, (5) name,
address, and phone number of management company, if any, and (6) the
monthly management fee for each unit.

8\. **[[Monthly Operating Reports]{.underline}]{.smallcaps}**. Debtor
must file an original monthly operating

report with the Clerk of the Bankruptcy Court, and serve a copy upon the
United States Trustee. Debtors who are individuals and/or operate a sole
proprietorship must complete and file a Monthly Operating Report for
Individuals. Debtors who are partnerships, LLC's, professional
corporations, or corporations must complete and file the Monthly
Operating Report for Businesses. The Monthly Operating Report is based
on a calendar month (e.g. January 1 - January 31), and all reports must
be filed by the 20^th^ day of the month following the reporting period.
The Monthly Operating Report cover page must be signed by the debtor's
attorney before filing with the court or submitting to the United States
Trustee. Additional financial information may be required by the United
States Trustee.

Debtors have a continuing obligation to file monthly operating reports
until the court approves and confirms the Plan of Reorganization. After
confirmation debtors may be required to file a Post-Confirmation
Operating Report. The post-confirmation operating report includes, among
other things, all payments made under the Plan of Reorganization and
payments made in the ordinary course of doing business. These reports
must be filed until the court enters a Final Decree, dismisses the case,
or converts the case to another chapter in bankruptcy. The original
report must be filed with the Clerk of the Bankruptcy Court, and a copy
served upon the United States Trustee. The report must be filed by the
20^th^ day of the month following the reporting period.

9\. **[[Taxes]{.underline}]{.smallcaps}**. Upon payment of each payroll,
debtor shall transfer from the operating account to the debtor\'s tax
account sufficient funds to pay any liability associated with the
payroll. Taxes shall be paid from the tax account accompanied by
appropriate tax deposit coupons. State and local taxes shall also be
paid from the tax account. Sales and use taxes shall be deposited to the
tax account at least weekly. All tax returns and reports must be timely
filed and accompanied by payment in full of any liability. A copy of
each return and verification of payment of taxes due must be served on
the United States Trustee.

10\. **[[Employment of Professionals and
Principals]{.underline}]{.smallcaps}**. A copy of any application to
employ or compensate a professional (including, but not limited to,
lawyers, accountants, real estate agents/brokers, appraisers,
auctioneers, and consultants) must be served upon the United States
Trustee. Applications to employ such persons must be filed prior to any
services being rendered to debtor.

Each applicant\'s affidavit must disclose any relationship or contact
applicant has with the debtor, any creditor, party in interest, their
attorneys and accountants, and employees of the United States Trustee.
**A general statement that the applicant is disinterested and does not
represent an interest adverse to the estate is *not* sufficient.**

Debtor shall provide the following information regarding employment and
compensation of its principals: name and position of the individual;
detailed description of the duties and responsibilities; reasons why
employment of the individual is necessary for successful reorganization;
details of the compensation sought; details of any other benefits or
consideration to be received, including but not limited to use of
vehicles, housing, expense reimbursement, insurance, and pension or
profit sharing; and, each individual\'s salary and benefit history for
the year immediately preceding the filing of the petition.

11\. **[[Pre-Petition Financial Statements]{.underline}]{.smallcaps}**.
Within fifteen (15) days of the petition filing, debtor shall provide
the United States Trustee with copies of debtor\'s most recent audited
and unaudited financial statements.

12\. **[[Federal Income Tax Returns]{.underline}]{.smallcaps}**. Within
fifteen (15) days of the petition filing, debtor shall provide the
United States Trustee with copies of debtor's federal income tax returns
for the two years prior to the filing.

13\. **[[United States Trustee Quarterly
Fees]{.underline}]{.smallcaps}**. A Chapter 11 debtor must pay a
quarterly fee to the United States Trustee for each calendar quarter, or
portion thereof, between the date of filing the petition and the date
the court enters a final decree closing the case, dismisses the case, or
converts the case to another chapter in bankruptcy. Payment of all fees
which are due and owing must be made before the effective date of a
confirmed Plan of Reorganization. The quarterly fee is calculated by
totaling debtor's disbursements as reported on the Monthly Financial
Reports for the three-month calendar quarter, according to the following
table. **A minimum fee of \$250 is due even if there are no
disbursements during a calendar quarter.** **There is no proration of
the fee**:

**[[Total Quarterly Disbursements]{.underline} [Quarterly Fee
Owed]{.underline}]{.smallcaps}**

\$ 0.00 to 14,999.99 \$ 250.00

\$ 15,000.00 to 74,999.99 \$ 500.00

\$ 75,000.00 to 149,999.99 \$ 750.00

\$ 150,000.00 to 224,999.99 \$ 1,250.00

\$ 225,000.00 to 299,999.99 \$ 1,500.00

\$ 300,000.00 to 999,999.99 \$ 3,750.00

\$ 1,000,000.00 to 1,999,999.99 \$ 5,000.00

\$ 2,000,000.00 to 2,999,999.99 \$ 7,500.00

\$ 3,000,000.00 to 4,999,999.99 \$ 8,000.00

\$ 5,000,000.00 to and above \$ 10,000.00

Quarterly fees are due no later than one month following the end of each
calendar quarter. Failure to pay quarterly fees may result in the
conversion or dismissal of the case. The debtor will receive a bill or
statement from the Executive Office for United States Trustees,
Washington, D.C., for each calendar quarter, prior to the payment due
date. These billings are estimates only, based on financial information
previously provided by the debtor to the Office of United States
Trustee. The debtor is responsible for calculating the correct quarterly
fee amount. A check for the quarterly fee, made payable to "United
States Trustee," should be mailed with the tear-off portion of the
statement form to:

**United States Trustee**

**P.O. Box 198246**

**Atlanta, Georgia 30384**

The address shown above is a lockbox at a bank. It may **NOT** be used
for service of process, correspondence, or for any purpose other than
payment of quarterly fees.

Debtor is responsible for timely payment of the quarterly fee. Failure
to receive a bill from the Executive Office for United States Trustees
does not excuse debtor from timely payment. Debtor's attorney may
contact the Office of United States Trustee if there are any questions
regarding quarterly fee forms or billing information.

14\. **[[Quarterly Fees After Confirmation of
Plan]{.underline}]{.smallcaps}**. Quarterly fees continue to accrue
after the Plan of Reorganization has been confirmed. After confirmation,
the debtor is required to submit proof of monthly disbursements, and to
continue to pay quarterly fees following the same payment guidelines
outlined in Paragraph 13 above until a Final Decree is entered by the
court or the case is dismissed or converted to another chapter. (Confirm
with the U. S. Trustee Field Office assigned to your case the type of
monthly operating report to be completed post-confirmation.) Debtor's
attorney may contact the Office of United States Trustee if there are
any questions regarding post-confirmation quarterly fee forms or billing
information.

15\. **[[Additional Notice Requirements]{.underline}]{.smallcaps}**. The
United States Trustee must be advised immediately of any significant
change in debtor\'s business. Significant changes include, but are not
limited to, casualty or theft losses, changes in insurance coverage, or
allegations of violations of laws, ordinances, or regulations, including
but not limited to the failure to pay taxes, which could affect the
continued operation of the Debtor\'s business.

16\. **[[Change of Address]{.underline}]{.smallcaps}**. It is the
debtor\'s responsibility to notify the United States Trustee and the
Bankruptcy Court of any change of address or telephone number within ten
(10) days of the change. Notice must be filed with the Clerk and served
on the United States Trustee. Debtor(s) may not receive notice of
actions taken in the case if the debtor fails to provide proper notice
to the Clerk and the United States Trustee.

**AMENDMENTS TO OPERATING REQUIREMENTS**

**and**

**SOLICITATION OF COMMENTS AND SUGGESTIONS**

The United States Trustee reserves the right to revise, modify or amend
these guidelines and requirements from time to time, and as is
appropriate in an individual case. Comments or suggestions regarding
these guidelines or other policies and procedures of the Office of The
United States Trustee are sought and appreciated and should be directed
to the United States Trustee for Region 21 at the address shown below:

**FELICIA S. TURNER**

**UNITED STATES TRUSTEE**

**REGION 21**

**362 RICHARD RUSSELL BUILDING**

**75 SPRING STREET, S.W.**

**ATLANTA, GEORGIA 30303**