No adversary proceeding to determine the dischargeability of a debt or objection to discharge shall be settled, discontinued or withdrawn except upon court approval and in the case of an objection to discharge after notice to the trustee, the United States trustee and such other persons as the court may direct in accordance with FRBP 7041.
Court approval
is conditioned upon full disclosure as to the circumstances of any settlement,
including the terms of any agreement entered into between the creditor
and the debtor. If the action is not settled or withdrawn in the presence
of the court on the record, then plaintiff shall file a proposed order
of discontinuance accompanied by a stipulation fully disclosing the circumstances
of any settlement and any consideration promised or given, directly or
indirectly, for the withdrawal of the action. The court may alternatively
direct the defendant to prepare and file the stipulation required by this
rule.
Comment
See 18 U.S.C.
152 and FRBP 7041. This rule shall also apply without regard to whether
a dispute is settled through mediation.