23 BK 16874
In this matter a Debtor agreed to settle state court mortgage foreclosure litigation and various bankruptcy case issues, entering into a written agreement. It filed a motion to approve the settlement but withdrew the motion before the hearing date.

The secured creditor filed a motion to enforce the settlement agreement which the court has granted.  The debtor argued that the settlement agreement could not be enforced because it had not been approved as required by Federal Rule of Bankruptcy Procedure 9019. The court disagreed because the Debtor blocked the approval effort by withdrawing the motion  to approve it and because the Debtor gave no reason for its change of heart.

The court noted that Bankruptcy Rule 9010 does not state that compromises and settlements are unenforceable in the absence of court approval.  In addition, it was noted that the Bankruptcy Code does not require court approval of all of a debtor’s agreements.

The court pointed out that debtors, creditors and trustees often compromise plan and proof of claim matters without obtaining court approval.