Rule 9019 Motion to Approve Settlement

Summary

This Rule 9019 motion to approve a settlement template is for use in a bankruptcy case where the debtor and another party have settled a matter. This template includes practical guidance, drafting notes, alternate, and optional clauses. Bankruptcy Rule 9019 generally requires that all proposed settlements of claims be made by motion after notice and a hearing. When counsel settles a matter involving the bankruptcy estate, counsel should usually seek court approval of the settlement under Bankruptcy Rule 9019. This will provide the parties in interest with relative certainty as to the enforceability of the settlement. The rule does not indicate the criteria that must be satisfied for a settlement or compromise to be approved. When evaluating settlement approval, courts will determine whether the settlement falls below the lowest point in the range of reasonableness. In assessing the lowest range of reasonableness, most courts will look to whether the settlements are fair and equitable and/or in the best interests of the estate. For additional resources for attorneys representing a party in a Chapter 13 bankruptcy case, see Individual Chapter 13 Bankruptcy Resource Kit. For a complete listing of key content when litigating disputes in bankruptcy cases, see Bankruptcy Litigation Resource Kit. For content for government attorneys who practice bankruptcy, see Government Attorneys Bankruptcy Resource Kit. For more information, see Rule 9019 Settlement Agreements and Settlement Agreements in Bankruptcy. For template settlement agreement of avoidance actions, see Settlement Agreement for Avoidance Actions (Bankruptcy Rule 9019). For a template of an order approving a motion to approve a settlement agreement, see Order Approving Settlement Agreement.