The language of Federal Rule of Bankruptcy Procedure 9019 has created a split among courts. Currently, a majority of courts require trustees to file any settlements they enter into with creditors with the court where the bankruptcy case is pending. By contrast, some courts do not require the trustee to file any settlements with the court. Requiring judicial approval of settlement agreements is consistent with the underlying policy of the Bankruptcy Code, legislative history, common law practice, and pre-Bankruptcy Code practice. This requirement would also promote uniformity among federal procedure rules. Accordingly, this Comment recommends that the Advisory Committee on Rules of Bankruptcy Procedure amend Federal Rule of Bankruptcy Procedure 9019 to require judicial approval of settlement agreements.
No Seal No Deal: Amending Federal Rule of Bankruptcy Procedure 9019 to Require Judicial Approval of Settlement Agreements,
Emory Bankr. Devs. J.
Available at: https://scholarlycommons.law.emory.edu/ebdj/vol32/iss2/7