Rule 9019 Motion to Approve Settlement


Summary

This Rule 9019 motion to approve a settlement form 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 ...