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Indianapolis Bankruptcy Division eliminates informal ADR mandate

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Southern District Bankruptcy Chief Judge James K. Coachys has signed an order that terminates a previous order requiring alternative dispute resolution related to Chapter 13 trustee motions to dismiss in the Indianapolis Division.

Even though the April 11 order no longer mandates dispute resolution in these cases, Coachys encourages its continuance. Now, if there is a filing of an objection to a trustee’s motion to dismiss, debtor’s counsel will be prompted to use block scheduling to set a hearing on the objection.

If the debtor and the trustee resolve the matter with regards to trustee motions to dismiss and trustee objections to confirmation, the parties shall file the appropriate documentation. If it’s resolved by a settlement or agreed entry, and the debtor doesn’t abide by the terms of the settlement, then upon filing by the trustee of a notice of such failure the case shall be dismissed without further notice or hearing.

This change does not affect the New Albany Division and General Order 10-0002, which sets the informal dispute resolution process for that division.

The changes become effective Monday.

 

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