Rule 9019 Federal Rules of Bankruptcy Procedure

Rule 9019 of the Federal Rules of Bankruptcy Procedure is about Compromise or Settlement; Arbitration. It is under Part IX (General Provisions) of the Rules.

(a) Approving a Compromise or Settlement. On the trustee’s motion and after notice and a hearing, the court may approve a compromise or settlement. Notice must be given to:

· all creditors;

· the United States trustee;

· the debtor;

· all indenture trustees as provided in Rule 2002; and

· any other entity the court designates.

(b) Compromising or Settling Controversies in Classes. After a hearing on such notice as the court may order, the court may:

(1) designate a class or classes of controversies; and

(2) authorize the trustee to compromise or settle controversies within the class or classes without further hearing or notice.

(c) Arbitration of Controversies Affecting an Estate. If the parties so stipulate, the court may authorize a controversy affecting an estate to be submitted to final and binding arbitration.