L. Rule 9019. COMPROMISE


(a) Filing.

(1) An application to compromise an adversary proceeding shall be filed in the main bankruptcy case, not in the adversary proceeding. It shall bear the style of the main bankruptcy case, not the adversary proceeding.

(2) An application to compromise an adversary proceeding shall, within the body of the application, set out the style and number of the adversary proceeding.

(3) No application to compromise an adversary proceeding need be filed in order to settle a nondischargeability action filed pursuant to 11 U.S.C. § 523, unless the compromise creates an allowed claim to be paid in the bankruptcy case. The proposed order must set forth the name and address of the payee and the proposed treatment of the claim

(b) Notice.

(1) Applications to compromise adversary proceedings are governed by L. Rule 9014, and may include the negative notice language there specified.

(2) Applications to compromise and motions to dismiss an objection to discharge under 11 U.S.C. § 727 must identify the cause of action and any consideration paid or agreed to be paid.

(c) Order and Judgment.

An application to compromise an adversary proceeding shall be submitted with both:

(1) an order to approve the application to compromise, bearing the style of the main bankruptcy case; and

(2) a proposed agreed judgment or order of dismissal, bearing the style of the adversary proceeding, for entry in the underlying adversary proceeding.