The practitioner should use this form when the creditor and debtor have reached an agreement to modify the automatic stay. See forms 35-10 (motion for relief from automatic stay), 35-11 (affidavit in support of motion for relief from automatic stay), and 35-12 (order granting motion for relief from automatic stay) in this chapter. See section 35.15 regarding adequate protection. See also 11 U.S.C. § 361.
Note: The judge will insert an image of his signature and the date of signing electronically. In the bankruptcy courts for the Western District of Texas, the practitioner should leave four inches of blank space at the top of the first page for insertion of the judge’s signature. In other bankruptcy courts in the other districts in Texas, the image of the judge’s signature will be inserted below the last line of text, so the practitioner should leave adequate space on the form. It is good practice to refer to the local rules and procedures for any updates or changes.
Warning: The local rules of the Bankruptcy Courts for the four districts in Texas have specific requirements for the content of the captions of pleadings and orders, and they are all different. The practitioner should consult the local rules of the bankruptcy court for the district in which he intends to file for the specific requirements about the content of captions. See section 35.1:2.
[Caption. See form 35-3 in this chapter.]
Agreed Order Providing for Adequate Protection of Collateral
The undersigned agree that [name of creditor], Creditor, filed its Motion for Relief from Automatic Stay, a settlement has been reached with respect to the Motion, and Creditor has a valid security interest in the [describe property] (the “Property”) by virtue of the [describe agreement creating the security interest, e.g., retail installment contract] entered into by Creditor and [name of debtor], Debtor, on [date] (the “Contract”).
Creditor agrees, in lieu of its right to enforce its security interest, obtain relief from the automatic stay, and take possession of the Property, to accept adequate protection from Debtor and Debtor agrees to provide it to Creditor.
It is therefore ORDERED that Creditor is entitled to adequate protection of its interests as a secured creditor of Debtor.
It is further ORDERED that Debtor shall make timely monthly payments to the trustee under Debtor’s Chapter [11/13] plan so that Creditor shall be able to receive payments every month from the trustee. The payments represent Creditor’s allowed secured claim, which is secured by the Property owned by and presently in the possession of Debtor.
It is further ORDERED that Debtor shall at all times maintain physical damage insurance issued by a company authorized to transact business in Texas on the Property as required by and in accordance with the terms and conditions of the Contract that pertain to required physical damage insurance; that Creditor shall be named as a loss payee on the policy or policies of physical damage insurance to be procured by Debtor; that Creditor shall be provided by Debtor with certificates of insurance or other written documentation from the insurer selected by Debtor showing that the Property is, in fact, covered by required physical damage insurance and that such insurance coverage is for a term of not less than 180 days; and Debtor shall notify Creditor of any change in insurance companies within ten days of the execution of any new policy.
And it is further ORDERED that (1) should Debtor default in making any payments to the trustee as provided for in Debtor’s plan, or (2) should Debtor fail to provide Creditor with written documentation of the physical damage insurance required by the terms of this Order, or (3) should Creditor receive notice of cancellation of any policy of physical damage insurance procured by Debtor and the default or failure is not cured within ten days of written notice to Debtor and Debtor’s attorney (the “Default Notice”), the automatic stay is hereby lifted without need for further order of this Court.
APPROVED AS TO FORM AND SUBSTANCE:
[Name]
Attorney for [name of debtor]
State Bar No.:
[E-mail address]
[Address]
[Telephone]
[Telecopier]
[Name]
Attorney for [name of creditor]
State Bar No.:
[E-mail address]
[Address]
[Telephone]
[Telecopier]
[Name]
Trustee
State Bar No.:
[E-mail address]
[Address]
[Telephone]
[Telecopier]