Source: https://www.justice.gov/ust/ustp-chapter-7-handbook-0
Timestamp: 2019-02-20 22:44:09
Document Index: 367512285

Matched Legal Cases: ['§ 330', '§ 58', '§ 586', '§ 330', '§ 101', '§ 330', '§ 330', '§ 327', '§ 330', '§ 330', '§ 58', '§ 321', '§ 58', '§ 322', '§ 341', '§ 58', '§ 58', '§ 341', '§ 341', '§ 1746', '§ 341', '§ 341', '§ 341', '§ 341']

USTP - Chapter 7 Handbook | UST | Department of Justice
USTP - Chapter 7 Handbook
(Effective July 1, 2002)
"I have viewed the original social security card (or other original document used for proof) and the number is 000-00-000. It does not match the number on the petition. I have instructed the debtor (or debtor's counsel) to file an amended petition by [date], serve all creditors and the trustee, and send a 'Notice of Correction of Social Security Number in Bankruptcy Filing' and a copy of the amended petition to the three major credit reporting agencies, and to the United States Trustee."
10. Have you filed previously filed bankruptcy? (If so, the trustee must obtain the case number and the discharge information to determine the debtor(s) discharge eligibility.)
APPENDIX B SAMPLE TRUSTEE'S REPORT OF NO DISTRIBUTION (NDR)
(This form may vary by district)
UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF _______________
I, __________________, having been appointed trustee of the estate of the above-named debtor, report that I have neither received any property nor paid any money on account of this estate except exempt property; that I have made a diligent inquiry into the financial affairs of the debtor(s) and the location of property belonging to the estate; and that there is no property available for distribution from the estate over and above that exempted by law.
Pursuant to FRBP 5009, I hereby certify that the estate of the above-named debtor has been fully administered.
I request that this report be approved, and that I be discharged from any further duties as trustee.
DATE: _________________ _____________________________
_____________________ Trustee
APPENDIX C UNITED STATES TRUSTEE FEE GUIDELINES
GUIDELINES FOR REVIEWING APPLICATIONS FOR
FILED UNDER 11 U.S.C. ï½§ 330
(Appendix A to 28 C.F.R. ï½§ 58)
(1) The Bankruptcy Reform Act of 1994 amended the responsibilities of the United States Trustees under 28 U.S.C. ï½§ 586(a)(3)(A) to provide that, whenever they deem appropriate, United States Trustees will review applications for compensation and reimbursement of expenses under ï½§ 330 of the Bankruptcy Code, 11 U.S.C. ï½§ 101, et seq. ("Code"), in accordance with procedural guidelines ("Guidelines") adopted by the Executive Office for United States Trustees ("Executive Office"). The following Guidelines have been adopted by the Executive Office and are to be uniformly applied by the United States Trustees except when circumstances warrant different treatment.
(5) Recognizing that the final authority to award compensation and reimbursement under ï½§ 330 of the Code is vested in the Court, the Guidelines focus on the disclosure of information relevant to a proper award under the law. In evaluating fees for professional services, it is relevant to consider various factors including the following: the time spent; the rates charged; whether the services were necessary to the administration of, or beneficial towards the completion of, the case at the time they were rendered; whether services were performed within a reasonable time commensurate with the complexity, importance, and nature of the problem, issue, or task addressed; and whether compensation is reasonable based on the customary compensation charged by comparably skilled practitioners in non-bankruptcy cases. The Guidelines thus reflect standards and procedures articulated in ï½§ 330 of the Code and Rule 2016 of the Federal Rules of Bankruptcy Procedure for awarding compensation to trustees and to professionals employed under ï½§ï½§ 327 or 1103. Applications that contain the information requested in these Guidelines will facilitate review by the Court, the parties, and the United States Trustee.
(b) Contents of Applications for Compensation and Reimbursement of Expenses. All applications should include sufficient detail to demonstrate compliance with the standards set forth in 11 U.S.C. ï½§ 330. The fee application should also contain sufficient information about the case and the applicant so that the Court, the creditors, and the United States Trustee can review it without searching for relevant information in other documents. The following will facilitate review of the application.
(i) Date the bankruptcy petition was filed, date of the order approving employment, identity of the party represented, date services commenced, and whether the applicant is seeking compensation under a provision of the Bankruptcy Code other than ï½§ 330.
(4) Project Billing Format.
(i) To facilitate effective review of the application, all time and service entries should be arranged by project categories. The project categories set forth in Exhibit A should be used to the extent applicable. A separate project category should be used for administrative matters and, if payment is requested, for fee application preparation.
(v) Time entries should be kept contemporaneously with the services rendered in time periods of tenths of an hour. Services should be noted in detail and not combined or "lumped" together, with each service showing a separate time entry; however, tasks performed in a project which total a de minimis amount of time can be combined or lumped together if they do not exceed .5 hours on a daily aggregate. Time entries for telephone calls, letters, and other communications should give sufficient detail to identify the parties to and the nature of the communication. Time entries for court hearings and conferences should identify the subject of the hearing or conference. If more than one professional from the applicant firm attends a hearing or conference, the applicant should explain the need for multiple attendees.
(iii) Whether applicant has provided a detailed itemization of all expenses including the date incurred, description of expense (e.g., type of travel, type of fare, rate, destination), method of computation, and, where relevant, name of the person incurring the expense and purpose of the expense. Itemized expenses should be identified by their nature (e.g., long distance telephone, copy costs, messengers, computer research, airline travel, etc.) and by the month incurred. Unusual items require more detailed explanations and should be allocated, where practicable, to specific projects.
(vii) Whether the expenses appear to be in the nature of nonreimbursable overhead. Overhead consists of all continuous administrative or general costs incident to the operation of the applicant's office and not particularly attributable to an individual client or case. Overhead includes, but is not limited to, word processing, proofreading, secretarial and other clerical services, rent, utilities, office equipment and furnishings, insurance, taxes, local telephones and monthly car phone charges, lighting, heating and cooling, and library and publication charges.
SAMPLE SUMMARY SHEET - Exhibit B
Fees Previously Requested NAME OF APPLICANT:
Fees Previously Awarded
CHAPTER Expenses Previously Requested ROLE IN THE CASE:
Expenses Previously Awarded
Retainer Paid CURRENT APPLICATION
NAMES OF PROFESSIONALS/ PARAPROFESSIONALS YEAR ADMITTED TO PRACTICE HOURS BILLED
TOTAL BLENDED HOURLY RATE(Excluding Paraprofessionals)
APPENDIX D SEGREGATING DUTIES IN A SMALL TRUSTEE OPERATION
WAYS TO SEGREGATE DUTIES IN A TWO-PERSON OFFICE
FUNCTION PERFORMED PERSON TO PERFORM FUNCTION
Opens mail/endorses and logs in checks Assistant (stronger control if performed by trustee)
Reviews checks Trustee (M)
Prepares bank deposits Assistant
Makes bank deposits Assistant (stronger controls if performed by trustee)
Reconciles log to bank statements Trustee (M) - sampling permitted
Maintains custody of blank check stock (includes
maintaining a control log if using computerized
Trustee (S) or assistant
Prepares checks Assistant
Signs checks Trustee (M)
Opens bank statements and reviews cancelled checks Trustee (M)
Reconciles bank statements and compares to Form 2 Assistant
Reviews bank reconciliations and compares to Form 2 Trustee (M)
Prepares Forms 1, 2, and 3 Assistant
Reviews Forms 1, 2, and 3 and signs interim report Trustee (M)
Courtesy of Region 18
APPENDIX E PROCEDURES FOR SUSPENSION AND REMOVAL OF PANEL TRUSTEES AND STANDING TRUSTEES
28 C.F.R. ï½§ 58.6
(9) Failure to meet the eligibility requirements of 11 U.S.C. ï½§ 321 or the qualifications set forth in 28 CFR ï½§ï½§ 58.3 and 58.4 and in 11 U.S.C. ï½§ 322;
(10) Failure to attend in person or appropriately conduct the 11 U.S.C. ï½§ 341(a) meeting of creditors;
(13) Change in the composition of the chapter 7 panel pursuant to a system established by the United States Trustee under 28 CFR ï½§ 58.1;
APPENDIX F NOTICE OF VOLUNTARY SUSPENSION
I, _________________, a [standing] [panel] trustee in Region [ ], request a voluntary suspension of the assignment of future cases for the following time period [specify]. I request this voluntary suspension for the following reason(s): [specify].
By seeking this Voluntary Suspension, I understand that 28 C.F.R. ï½§ 58.6 does not apply.
APPENDIX G POLICY STATEMENTS FOR EARNEST MONIES
I. EARNEST MONIES
In connection with the sale of bankruptcy estate assets, a chapter 7 trustee may occasionally receive and hold earnest monies. These funds are held in trust until the sale is consummated in accordance with applicable bankruptcy law. They may not be held, undeposited, in the trustee's office nor commingled with a law firm's trust account (19). Trustees should handle earnest monies as follows:
The funds may be deposited to the bankruptcy estate account immediately upon receipt. The deposit is recorded on Form 2 and described as "earnest monies." The description also identifies the related asset. Earnest monies are not recorded on Form 1.
When the related asset is sold, the earnest monies paid by the successful bidder become an estate asset. They are then reported on Form 1 under "Sale/Funds Received by the Estate" (column 5) and referenced on Form 2 using the applicable Form 1 reference number.
If earnest monies were received from other bidders, refunds to the unsuccessful bidders are made via estate checks (20). These checks are recorded on Form 2 and described as "return of earnest monies received in connection with the sale of x asset."
If earnest monies are received late in the day and it is impossible or impractical to follow the above procedure, the trustee must ensure that the funds are kept overnight in a safe or locked drawer until the next business day when they can be deposited to
the estate account. The trustee may also want to investigate the possibility of using the bank's night depository or 24 hour services if the bank is not in a remote location.
The funds may be deposited to a separate trust account established for each individual estate. The trust account is to be opened and the earnest monies deposited immediately upon receipt. Of course, Chapter 7 trustees must comply with applicable state laws and banking or other regulations when depositing bankruptcy-related earnest monies to trust accounts.
The following minimum requirements for trust accounts used to hold bankruptcy-related funds have been established:
The account must be in the name of the trustee and clearly designated as a trust account, with pre-printed checks and deposit slips reflecting this status. The trustee shall notify the United States Trustee of the name and address of the financial institution and the account number(s) of the trust account(s).
Generally, these trust accounts are not interest bearing due to the short-term nature of the deposits and the difficulty of apportioning interest. Some states, however, require attorneys to utilize interest bearing accounts for funds held in trust (in these instances, the interest is usually remitted to the state). If the trustee deposits earnest monies in an interest-bearing trust account and is not required to remit interest to the state, the trustee must keep sufficiently detailed records to be able to allocate interest to each individual deposit.
The trustee shall maintain original or duplicate deposit slips, copies of the checks deposited to the account, original canceled checks, bank statements, and cash receipts/disbursements records that identify the payer/payee, amount, purpose, and date for each deposit to and disbursement from the account. Monthly, the trust accounting records shall be reconciled to the bank statements. These records are subject to audit by the United States Trustee and shall be retained by the trustee for a period of two years after the related bankruptcy estate is closed.
Quarterly, the trustee shall report to the United States Trustee all bankruptcy-related deposits and disbursements pertaining to the trust account in a format as from time-to-time prescribed by the Executive Office.
The trustee will authorize the financial institution to provide periodic reports, bank statements, and all other records pertaining to the account as may be requested by the United States Trustee.
II. PROCEDURES FOR HANDLING CASH
Program policy has long discouraged cash payments because, in the vernacular, "cash walks." Whenever possible, a trustee is to encourage debtors and other parties to convert cash to a money order or cashier's check before surrendering it to the trustee.
When a trustee cannot avoid accepting cash, they must provide a numbered receipt to the payer and immediately deposit the funds in the estate account. If they are unable to do so, either because the trustee uses a remote bank or because an estate account has not been opened, the trustee or an employee should immediately convert the cash to a cashier's check or money order. All of the supporting documentation should be kept together in the estate file to provide an audit trail. When an employee handles the transaction, the trustee needs to verify that the amount of the check or money order matches the amount of funds initially turned over to the employee.
If cash is received late in the day and it is impossible or impractical to follow the above procedure, the trustee must ensure that the funds are kept overnight in a safe or locked drawer until the next business day when the cash can be deposited to the estate account or converted to a cashier's check or money order. The trustee may also want to investigate the possibility of using the bank's night depository or 24 hour services if the bank is not in a remote location.
Appendix H DECLARATION REGARDING ADMINISTRATION OF OATH AND
CONFIRMATION OF IDENTITY AND SOCIAL SECURITY NUMBER
In re: (Debtor's Name)
Bankruptcy Case No.____________________________________________ ____
Date of telephonic or video conference appearance at ï½§ 341(a) meeting of creditors: _________________
My name is :_____________________________________________
My work address is:_______________________________________
My work telephone number is: (____)_________________________
The address from where I participated in the ï½§ 341(a) meeting of creditors is:
5) I am a person authorized to administer oaths in the State of ___________________, by virtue of the following fact:
_____ I am a notary
_____ I am a court reporter
_____ I am a judicial officer
_____ I am authorized to give an oath under the Code of Military Justice
_____ Drivers License (State & number) _____________________________
_____ State Identification (State & number)____________________________
_____ Passport (Country, number, expiration date) ______________________
_____ Military Identification (Branch & ID number) _____________________
_____ Other (describe) _____________________________________________
7) I personally inspected the following original document as proof of the debtor's social security number and orally confirmed it with the trustee:
_____ Social Security Administration Statement
_____ W-2 Form
_____ Recent Payroll Stub
_____ Employer's Health Card or Medical Insurance Card
_____ Other (specify) __________________________________________
8) On ____________, I did administer an oath to the debtor, prior to the trustee commencing
In accordance with 28 U.S.C. ï½§ 1746, I declare under penalty of perjury that the foregoing is true and correct. Executed this ________ day of ________, ________, in _________________, _________.
Appendix I NOTICE OF CORRECTION OF SOCIAL SECURITY NUMBER IN BANKRUPTCY FILING
P. O. BOX 9558
P. O. BOX 144717
FROM:____________________________________________________________, Debtor
INCORRECT SSN: __ __ __ - __ __ - __ __ __
CORRECT SSN: __ __ __ - __ __ - __ __ __
Enclosed please find an amended bankruptcy petition which liststhe correct social security number for the above named Debtor.
Please correct your records to indicate that the individual whose social security number is __ __ __-__ __-__ __ __ __ is not the debtor in Case #_________________ filed in _______________________________.
(Federal Judicial District)
Appendix J NOTICE TO UNITED STATES TRUSTEE OF
DEBTOR IDENTITY PROBLEM
Trustee:____________________ Original ï½§ 341(a) date:____________________
Continued ï½§ 341(a) date:__________________
No appearance at continued ï½§ 341(a) meeting
No identification at continued ï½§ 341(a) meeting
Pay Stub Other:________________________
Driver's License State Picture ID
U.S. Passport Legal Resident Alien Card
Attorney received wrong SSN Typographical error
Amend petition File Motion to Dismiss Case
Notify credit reporting agencies Other:____________________
Other:____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________